HOUSTON, TEXAS, June 19, 2001—El Paso Natural Gas Company, a subsidiary of El Paso Corporation (NYSE:EPG), today announced two binding open seasons for capacity on a bi-directional lateral within California. The lateral, which El Paso obtained as part of its purchase of the All American oil pipeline in February 2000, runs from the area of Daggett, California southeast to the area of Blythe, California and Ehrenberg, Arizona on the Colorado River. The project will facilitate the movement of natural gas within California and provide service to power plants in California and Arizona. The open seasons, which begin today, close on July 10, 2001.

These open seasons are in response to the non-binding open season for this lateral that was held from May 1 through May 25, 2001. In that open season, El Paso received requests for more than 2.1 billion cubic feet per day (Bcf/d) of natural gas on the Daggett-to-Ehrenberg path and more than 0.9 Bcf/d on the Ehrenberg-to-Daggett path.

The open seasons offer 500 million cubic feet per day (MMcf/d) of capacity on the Daggett-to-Ehrenberg path and 400 MMcf/d of capacity on the Ehrenberg-to-Daggett path. The receipt and delivery points are interchangeable for the two paths. In the Daggett, California area, receipt/delivery points include interconnects with Mojave Pipeline Company, Kern River Pipeline Company, Pacific Gas and Electric Company, and Southern California Gas Company. In the Blythe, California and Ehrenberg, Arizona area, the points include interconnects with the proposed North Baja Pipeline Project, Southern California Gas Company for incremental capacity within California, and El Paso's existing system near Ehrenberg, Arizona for transportation upstream of California.

For both the Daggett-to-Ehrenberg path and the Ehrenberg-to-Daggett path, El Paso is offering a reservation rate of no higher than 10 cents per Mcf on a 100-percent load factor basis. El Paso is estimating a fuel charge for both paths of 1½ percent.

If the open seasons result in sufficient binding transportation agreements to make the lateral project economically viable, El Paso will file with the Federal Energy Regulatory Commission for authority to construct the project. Assuming timely receipt of all required authorizations, including environmental and right-of-way, the project could be placed in service during the first quarter of 2003.

Shortly, El Paso plans to announce additional binding open seasons to expand its existing system as the result of the solid response received in its non-binding open season held earlier this year.

El Paso Corporation, the largest and most broadly based natural gas company in the world, spans the energy value chain from wellhead to electron. The company owns and operates a significant portion of the North American natural gas delivery grid, operates the fastest growing, most sophisticated energy merchant group, and is the nation's third largest natural gas producer. El Paso, a leader in risk management techniques, is focused on maximizing shareholder value, transforming existing markets, and speeding the development of new markets. Visit El Paso at www.elpaso.com.

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that the anticipated future results will be achieved. Reference should be made to the company's (and its affiliates') Securities and Exchange Commission filings for additional important factors that may affect actual results.