ATO Atmos Energy Corp

One Atmos Energy employee's innovative use of vacuum technology is solving an industry-wide problem. Dallas-based Marc Chapman invented the Vapor Extraction Unit (VEU), a machine that creates 850 cubic feet per minute of suction to remove natural gas trapped in the soil. For Atmos Energy (NYSE:ATO), the nation's largest natural gas-only distributor, Chapman's invention should enhance safety for the public. By using the VEU to clear the vapors from the soil faster, leaks should be located quicker. Fast action is vital when the ground is saturated with natural gas and the rotten egg smell is emanating from cracks, meaning danger could be only one spark away. Saving Time and Money "The VEU should save a tremendous amount of time," said Chapman, director of operations for Atmos Energy's Mid-Tex Division. "What would take the old tube-type extraction machine a month, we can now accomplish in a few days. That allows Atmos crews to focus efforts on repairing leaks, not looking for them. We are utilizing this new device daily in the Dallas-Fort Worth area." Using the old method, it might take weeks to locate and mitigate a slow leak. To find the leak, employees would pound a three foot metal rod, or probe, into the ground at several locations to measure the level of natural gas in the soil. High readings meant they were getting close to the underground source. Even after the leak was found and corrected, residual natural gas was often still in the soil, which led to the use of time-consuming vacuum devices to remove the natural gas. The VEU uses multiple suction rods with more vacuum power, allowing employees to swiftly remove the natural gas and isolate the leak area. "We had a situation where a contractor hit a gas line and didn't tell anyone," says Chapman. "That led to a lengthy, low-pressure natural gas leak, which wasn't reported. After we spent several hours rigging up our old vacuum excavation machine to extract all of the gas from the ground, I came up with the idea of using new vacuum technology to create a machine that exclusively removes vapors like natural gas from the ground." Industry Application Realizing the VEU benefits were wide-ranging, Atmos Energy licensed the new process to M-B-W Incorporated, based in Slinger, Wisconsin, for development and marketing the technology's use by other companies. "M-B-W pays Atmos Energy a small royalty for the license agreement," Chapman said. "The patent includes my name but belongs to Atmos Energy since I invented it on company time. My intention all along was for this invention to benefit the company." "The reception from other utilities has been overwhelming," said Phil Wiegers, president of EGW Utilities, which markets the device. "Most natural gas companies across the U.S. should be using the new technology within two to three years, and then it will likely attract attention in other countries." Atmos Energy already uses five VEUs in its Mid-Tex Division, which includes the northern third of Texas. Other Atmos Energy divisions are in the process of acquiring units throughout the company's 12-state service territory. The first generation of VEUs, built by M-B-W, sell for approximately $25,000. Wiegers says it should pay for itself in improved leak repair efficiencies. Companies in densely populated areas can mount the unit on a truck, while companies in other areas may mount it on a trailer. Chapman credits several co-workers with improvements to the VEU and says they continue to tinker with the device. It has the potential to be used with a variety of vapors: natural gas, propane and other petroleum products. Next, he's working on a way to extract vapors from soil that has been saturated with water or rain. Forward-Looking Statements The matters discussed in this release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or in any of the company's other documents or oral presentations, the words "anticipate," "believes," "estimate," "expects," "forecast," "goal," "intends," "objective," "plans," "projection," "seek," "strategy" or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this news release, including the risks relating to the acquisition of the operations of TXU Gas, the company's ability to continue to access the capital markets and the other factors discussed in the company's SEC filings. These factors include the risks and uncertainties discussed in the company's Form 10-K for the fiscal year ended September 30, 2005, and the company's Form 10-Q for the three and six month periods ended March 31, 2006. Although the company believes these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. The company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. About Atmos Energy Atmos Energy Corporation, headquartered in Dallas, is the country's largest natural gas-only distributor, serving about 3.2 million gas utility customers. Atmos Energy's utility operations serve more than 1,500 communities in 12 states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy's nonutility operations, organized under Atmos Energy Holdings, Inc., operate in 22 states. They provide natural gas marketing and procurement services to industrial, commercial and municipal customers and manage company-owned natural gas storage and pipeline assets, including one of the largest intrastate natural gas pipelines in Texas. Atmos Energy is a Fortune 500 company. For more information, visit www.atmosenergy.com.