Salt Springs Open Season

Salt Springs Gas Storage Service Non-Binding Open Season

Corridor Resources, Inc. is conducting a non-binding open season commencing on April 15, 2008 and closing on May 30, 2008 to solicit interest from existing and future shippers on the Maritimes and Northeast Pipeline (M&NP) system for storage services from Corridor's proposed Salt Springs Storage facility near Sussex, New Brunswick. The proposed facility, which will be connected to the M&NP pipeline system, is ideally situated to provide storage services for supply management/security, system balancing, peaking and arbitrage activities for markets in Atlantic Canada and the US Northeast.

• Background
• Proposed Gas Storage Facilities
• Proposed Gas Storage Services & Indicative Rates
• Open Season Process

If sufficient interest is demonstrated in the Open Season, Corridor would proceed with the permitting process for a test well at the best location for salt cavern development. The process of seeking authorizations to construct the necessary aboveground facilities to allow for storage operations and deliveries from and to the M&NP pipeline or directly to customer facilities, would commence immediately following completion of the test well and detailed engineering studies.

A. Background

Corridor holds the Province of New Brunswick Underground Storage Exploration License No. 08-01 issued pursuant to the Underground Storage Act authorizing it to investigate the development of its 15,000+ hectare license containing the Salt Springs salt deposit. This large salt deposit contains thick section (up to 2,200 feet) of high quality (up to 98% NaCl) at depths ranging from 1,500 to 3,700 feet.

Location of Salt Springs, New Brunswick

Under a previous exploration license, a preliminary feasibility study was undertaken in 2005/06. Results of the study indicated that:

1. The salt formation was suitable for constructing at least 7 caverns that could provide 2.0 to 4.0 bcf of working gas space each at costs similar to the costs for GOM salt storage caverns.
2. Adequate subsurface fresh water supplies exist to support construction of the caverns.
3. Brine disposal facilities exist near Cassidy Lake and could be expanded to accommodate cavern construction.
4. Pipeline corridors were identified that could connect the storage facilities to Corridor's existing pipeline from its McCully Gas field to M&NP's mainline and/or to the M&NP system in East Saint John.

B. Proposed Gas Storage Facilities

The development plan for Salt Springs Storage allows for phased development over a 10 year period. Based on the results of this Open Season process, Corridor would propose to develop the following facilities for gas storage services.

• Solution mine at least one storage cavern
• Initial Cavern Size - 2.0 to 4.0 bcf of working gas (2011/12)
• Expandable with multiple caverns to 15 to 18 bcf or more over 10 years
• At least 150,000 dth/day of initial withdrawal capacity
• 50,000 dth/day to 150,000 dth/day of injection capability (depends on services requested)
• Connect the storage to M&NP's Saint John lateral in East Saint John and with the M&NP mainline via Corridor's existing production sales line. Actual interconnecting pipeline configuration depends on customer needs and desired delivery and receipt points.
• Direct access to Corridor gas production, existing compression, gas processing and gas pipeline system.
• Estimated in-service date 2011/12 heating season

Salt Springs Storage Facilities Location & Pipeline Interconnects

C. Proposed Gas Storage Services & Indicative Rates

Firm Service (20 to 30 day service)

Firm Service (20 to 30 day service)
Monthly Demand	$0.25/dth/month of contracted working gas volume
Injection charge	$0.01/dth injected
Withdrawal Charge	$0.01/dth withdrawn
Fuel Retainage	1.5% of volumes injected/withdrawn
Minimum term	10 years

Operational Considerations

• Injections and/or withdrawals can be nominated for any day limited only by the gas volume in storage at time of nomination
• Firm customers have priority access to unused injection and withdrawal capacity on a priority basis
• Intra-day changes in daily nominations will be accommodated upon two hours notice
• Customers are responsible for transportation on pipelines interconnecting with the storage facilities
• Customers may assign storage contract to others but must so notify the storage operator of such assignment

D. Open Season Process

Any party desiring storage capacity should complete the attached service request form and submit such request to Corridor by 5:00 ADT, May 30, 2008. Customers should specify the desired storage space requested in dth, the firm withdrawal capacity in dth/day and the desired injection capacity in dth/day. The interested party should indicate the minimum term of the storage contract it is willing to consider if it is different than the 10 year stated minimum.

• Salt Springs Storage Service Request Form

Questions on the process, storage services and other matters associated with this Open Season or the proposed storage facilities should be directed to: