Downeast is proposing the construction of an approximate 30-mile long, 30-inch diameter high-pressure natural gas pipeline system to interconnect the planned Downeast LNG receiving terminal with the interstate pipeline system of Maritimes and Northeast Pipeline ("M&NP") at the existing Baileyville Compressor Station in Baileyville, Maine. Through its proposed connection with the M&NP system, the Downeast Pipeline may provide shippers with access to interconnections with interstate and intrastate natural gas transmission pipelines in the New England region.

The Downeast Pipeline will be designed with a maximum allowable operating pressure of 1,580 pounds per square inch gauge ("psig") and deliverability of up to 500 mmscf/d with peaking capacity of 625 mmscf/d (net of fuel).

Downeast filed an application with the Federal Energy Regulatory Commission ("FERC") for authorization under Section 7(c) of the Natural Gas Act ("NGA") to construct and operate the Downeast Pipeline in Docket No. CP07-53-000, et al. which currently is pending. A map showing the currently proposed configuration of the Downeast Pipeline is available on the Downeast website. The targeted in-service date for this pipeline system is the winter season of 2012, provided the necessary regulatory approvals are received and facilities can be constructed by that date.

Dates and Length of Non-Binding Open Season The non-binding Open Season for Downeast will begin on November 3, 2008 and conclude at 5 p.m. (EST) on December 2, 2008.

Submission of Expressions of Interest

Expressions of Interest should be filled in completely, to include the Shipper name, contact information of the person completing the form, the desired maximum daily transportation quantity, contract term, and desired reservation rate for the term of the agreement. The rate must be presented as either the recourse reservation charge that ultimately is approved and accepted by FERC (and subject to change by FERC from time to time) or a negotiated rate. The requested primary contract term must be in whole year increments and reflect a minimum contract term of 20 years from the commencement of service. Prospective Shippers are permitted to submit multiple Expressions of Interest. Since the proposed pipeline will have only one receipt point and one delivery point, designation of these points is not required.

Awarding of Capacity

In the event more capacity is requested than is available under this offering, capacity allocation will be evaluated on a non-discriminatory basis based upon the highest net present value ("NPV") per Dth for each offer. Winning bidders will be contacted by 5 p.m. (EST), December 9, 2008. Downeast will proceed in negotiating transportation precedent agreements ("TPAs") with the winning bidder(s). Awards of capacity will be final and will bind those entities that execute TPAs.

Reservations

Downeast reserves the right, on a nondiscriminatory basis, to reject any bid that Downeast determines does not meet the requirements set forth herein, including those bids that contain conditions. Downeast reserves the right to modify or alter the design and configuration of the proposed pipeline and services contemplated herein, if necessary, as dictated by economic, environmental, regulatory and legal factors. Furthermore, if Downeast determines in its sole discretion that the results of this Open Season do not support an economically viable project, Downeast may terminate project work and withdraw from this Open Season at any time prior to the execution of TPAs, without penalty or liability to any third party.

Questions regarding this Open Season and requests for copies of the bid documents should be directed to the following individual:

Dean Girdis
Downeast LNG
6431 Barnaby Street, NW
Washington, DC 20015
Phone: 202-249-9035
Email: dgirdis@downeastlng.com