• Why does ONEOK recommend the PEPL Index?
  We recommend the PEPL Index pricing option because it has proven to be the most consistent, lowest cost pricing option year after year. The PEPL Index plus our low transport adder has saved money for both irrigation and grain drying customers. The PEPL (Panhandle Eastern Pipe Line) is an interstate pipeline that sources gas from the panhandles of Texas, Oklahoma and Kansas. A pipeline index reflects regional pricing based on actual gas transactions on that pipe. In comparison, the NYMEX (New York Mercantile Exchange) represents gas sold at the Henry Hub in Louisiana. The NYMEX also represents the natural gas futures market which is usually higher priced and more volatile due to trading and speculation. It typically reflects gulf coast and east coast pricing.
  
  
• What is the CIG Index?
  The CIG Index reflects regional pricing on the Colorado Interstate Gas Pipeline (CIG), an interstate pipeline that runs through the Rocky Mountains. Last October, the CIG Index fell to its lowest price due to a surplus of gas supplies in the Rockies. However, since January 2008 a new interstate pipeline, Rockies Express Pipeline, has created a market for this surplus gas. This new market has made gas in the Rockies more valuable and has increased the CIG Index to a value comparable to the PEPL Index.
  
  
• What is the transport adder?
  The transport adder consists of upstream costs including transportation charges that are added to an index price. There will always be a transport adder on both the PEPL and CIG. It is important to compare your overall price per therm. Look on the back of your monthly bills for your supplier's "Commodity Charge."
  
  
• Why doesn't ONEOK offer an index price with a cap?
  An option purchased to provide cap protection significantly increases your price. While it may be prudent to have a cap on a NYMEX pricing option because of higher risk, it makes better sense to choose our PEPL Index pricing option with less cost and less risk.
  
  
• Why doesn't ONEOK offer a managed blended price?
  As a farmer you realize that the weather has a great influence on your irrigation and grain drying needs. The cost to provide a fixed price and the option to use a little or a lot is significant. A third party such as a commodities broker is required when hedging gas for a group of customers, and therefore can add costs to your overall price.
  
  
• Can I lock in my price with ONEOK?
  In past years, price comparisons have shown that our PEPL Index price came out lower than those who had a lock-in option. Market volatility and hedge costs associated with locking in a fixed price add significant costs.
  
  
• What is ONEOK doing to give back?
  Over the past few years we have been looking for a way to give back to the rural areas where our customers live. We are excited to show our commitment to Nebraska by making contributions to 4-H clubs in your county. It's important for us to give back, and we chose to help support an organization that benefits kids. Every account you sign up means more money for 4-H clubs in your county. Help us help 4-H. Choose ONEOK.