Southern Star Announces Open Season for Rockies’ Expansion Project

August 18, 2003, Owensboro, KY

Today, Southern Star Central Corp., the holding company for Southern Star Central Gas Pipeline, Inc. (Southern Star) and Western Frontier Pipeline Company, L.L.C. (Western Frontier), announced that it is re-activating plans for its Western Frontier pipeline project, which would provide access to Rockies' gas supplies at the Cheyenne Hub, and transport those supplies to the mid-continent region.

"We are very pleased to be announcing to everyone that Western Frontier is back. We believe that Western Frontier was the premier project for transportation of Rockies' gas into the mid-continent markets when the application was filed in October, 2001, and can still play a vital role in the nation's energy strategy by providing a competitive, well-designed transportation alternative from that region", said Jerry Morris, Vice President of Business Development and Strategic Planning for Southern Star "A significant amount of development work was completed on Western Frontier, including certain environmental work, permitting, and right of way acquisition. Despite the interest expressed in Western Frontier by natural gas producers and markets, we were forced to put the project on hold in early 2002 due to the financial distress of our parent company at that time. However, as a result of AIG Highstar Capital, L.P.'s ("Highstar") purchase of Southern Star and Western Frontier in the Fall of 2002 that situation no longer exists. We want the market to know that Western Frontier remains a viable project that we are interested in developing."

"I want to see the Western Frontier project built", stated Christopher Lee, Chairman and Chief Executive Officer of Southern Star and Western Frontier, and the founder of Highstar. "It is clear to us that a key portion of the nation's long-term energy supply can be sourced from Rocky Mountain natural gas formations, however, the transportation infrastructure to move gas from that region to it's ultimate end users is woefully inadequate, even considering currently proposed projects. We want to help bridge this gap to the benefit of producers, shippers, and gas consumers. We have the financial capability, and will build the project if the market exists to support it."

Western Frontier was originally designed as a 400 mile, 30" pipeline with 30,000 HP of compression, to transport up to 540,000 dth/d from the Cheyenne Hub south to the Denver-Julesberg basin, then on to the mid-continent region, terminating in Beaver County, Oklahoma. Potential major interconnects include Southern Star in Grant County, Kansas and Beaver County, Oklahoma, as well as ANR Pipeline, Northern Natural Pipeline, Natural Gas Pipeline, and Panhandle Eastern Pipe Line. These major interstate pipelines have takeaway design capacity in excess of 6 Bcfd. Western Frontier also may provide convenient access to the Kansas and Oklahoma intrastate systems. As currently contemplated, the pipeline would have an initial capacity ranging from 540,000 Dth/d to 1,000,000 Dth/d, which will be determined by market interest, and could be economically expanded by adding additional compression.

"We would project Western Frontier to be in-service sometime in 2006-2007, which would allow time for the developing Rockies production to ramp up ", commented Morris. "We think this timeframe dovetails well with the projections that we have seen with respect to future expectations for production. We encourage all players in the gas transportation chain to call us regarding Western Frontier. Southern Star and its owner, are serious about making this project a reality."

Parties are invited to indicate interest in Western Frontier by participating in a non-binding open season that opens today, and will run through 5 pm CST October 10, 2003. Western Frontier rates will be dependent on the total subscription level for the project. However, it will provide a competitively priced transportation alternative for Rockies gas. "We are re-visiting our prior project cost and rates estimates but, anticipate that contracts for a minimum 10-year term with competitive rates in the $0.25 -$0.35 range will support the project economics" said Morris. "We expect that a larger project would capture economies of scale that would result in the most favorable rates."

Additionally, Southern Star would evaluate a potential expansion of its facilities from the Wamsutter/Echo Springs area to the Cheyenne Hub. This would provide additional infrastructure that would enhance flexibility out of the Greater Green River Basin.

Based upon these expressions of interest, Western Frontier would then move expeditiously to finalize all costs and rates to enable a binding open season to take place and the certificate application to be filed. Interested parties should call the contacts listed above. Additional information about Southern Star and Western Frontier's open season can be found on Southern Star's Electronic Bulletin Board, as well as the following website:

http://www.sscgp.com/westernfrontier

About Southern Star Central Corp.

Southern Star Central Corp. is the parent of Southern Star Central Gas Pipeline, Inc. (Southern Star) and Western Frontier Pipeline Company, L.L.C. (Western Frontier), both headquartered in Owensboro, Kentucky. Southern Star is a natural gas transmission system spanning over 6,000 miles in the Midwest and Mid-continent regions of the United States. Southern Star's pipeline system and facilities are located in Kansas, Oklahoma, Missouri, Wyoming, Colorado, Texas, and Nebraska. It serves major markets such as Kansas City, Wichita, and St. Louis. Southern Star Central Corp. is a wholly-owned subsidiary of AIG Highstar Capital, L.P.