About Williams Cos Inc-The

The Williams Companies, Inc. operates as an energy company. The company provides infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. The company has operations in 12 supply areas that provide natural gas gathering, processing, and transmission services, NGLs fractionation, transportation, and storage services, and marketing services to more than 700 customers. The company owns an interest in and operate over 33,000 miles of pipelines in 24 states, 35 natural gas processing facilities, 9 NGL fractionation facilities, approximately 25 million barrels of NGL storage capacity, and 405.4 Bcf of natural gas storage capacity, and deliver natural gas that is used every day for clean-power generation, heating, and industrial use. Service Assets, Customers, and Contracts Interstate Natural Gas Pipeline Assets The company’s interstate natural gas pipelines, which are presented in its Transmission & Gulf of Mexico segment are subject to regulation by the FERC and as such, its rates and charges for the transportation of natural gas in interstate commerce are subject to regulation. The company’s interstate natural gas pipelines transport and store natural gas for a broad mix of customers, including local natural gas distribution companies, public utilities, municipalities, direct industrial users, electric power generators, and natural gas marketers and producers. Most of the company’s interstate natural gas transmission businesses are fully contracted under long-term firm reservation contracts with high credit quality customers. These contracts have various expiration dates and account for the major portion of the company’s regulated businesses. Additionally, the company offers storage services and interruptible transportation services under shorter-term agreements. The company’s top ten customers of its interstate natural gas pipelines in 2023 accounted for approximately 47 percent of its regulated interstate natural gas transportation and storage revenues. Gathering, Processing, and Treating Assets The company’s gathering, processing, and treating operations are presented within its Transmission & Gulf of Mexico, Northeast G&P, and West reporting segments. The company’s gathering systems receive natural gas from producers’ crude oil and natural gas wells and gather these volumes to gas processing, treating, or redelivery facilities. Typically, natural gas, in its raw form, is not acceptable for transportation in major interstate natural gas pipelines or for commercial use as a fuel. The company’s treating facilities remove water vapor, carbon dioxide, and other contaminants, and collect condensate. The company is generally paid a fee based on the volume of natural gas gathered and/or treated, generally measured in the Btu heating value. In addition, natural gas contains various amounts of NGLs, which generally have a higher value when separated from the natural gas stream. The company’s processing plants extract the NGLs, which include ethane, primarily used in the petrochemical industry; propane, used for heating, fuel, and also in the petrochemical industry; and, normal butane, isobutane, and natural gasoline, primarily used by the refining industry. The company’s gas processing services generate revenues primarily from the following types of contracts: Fee-Based: The company is paid a fee based on the volume of natural gas processed, generally measured in the Btu heating value. A portion of the company’s fee-based processing revenue includes a share of the margins on the NGLs produced. For the year ended December 31, 2023, approximately 90 percent of the company’s NGL production volumes were under fee-based contracts. Noncash Commodity-Based: The company also processes gas under two types of commodity-based contracts, keep-whole and percent-of-liquids, where it receives consideration for its services in the form of NGLs. For a keep-whole arrangement the company replaces the Btu content of the retained NGLs with natural gas purchases, also known as shrink replacement gas. For a percent-of-liquids arrangement, the company delivers an agreed-upon percentage of the extracted NGLs and retain the remainder. Retained NGLs are referred to as the company’s equity NGL production. Per-unit NGL margins are calculated based on sales of the company’s own equity volumes at the processing plants. For the year ended December 31, 2023, approximately 10 percent of the company’s NGL production volumes were under noncash commodity-based contracts. Generally, the company’s gathering and processing agreements are long-term agreements, with terms ranging from month-to-month to the life of the producing lease. The company also has certain gas gathering and processing agreements with MVC, whereby the customer is obligated to pay a contractually determined fee based on any shortfall between the actual gathered and processed volumes and the MVC for a stated period. The company’s gathering, processing, and treating businesses do not have direct exposure to crude oil prices. The company’s on-shore natural gas gathering and processing businesses are substantially focused on gas-directed drilling basins rather than crude oil, with a broad diversity of basins and customers served. Declines in crude oil drilling would be expected to result in less associated natural gas production, which could drive more demand for natural gas produced from gas-directed basins it serves. During 2023, the company’s facilities gathered and processed gas and crude oil for approximately 230 customers. The company’s top ten customers accounted for approximately 70 percent of its gathering and processing fee revenues and NGL margins from its noncash commodity-based agreements. Gas and NGL Marketing The company’s NGL and natural gas marketing services are presented primarily within its Gas & NGL Marketing Services segment. The company markets natural gas and NGL products to a wide range of users in the energy and petrochemical industries. In 2023, the company’s three largest natural gas marketing customers accounted for approximately 10 percent of its gross natural gas marketing sales, and its three largest NGL marketing customers accounted for approximately 43 percent of its NGL marketing sales. The company’s gas marketing business markets natural gas and provides natural gas asset management and wholesale marketing, trading, storage, and transportation for a diverse set of natural gas and electric utilities, municipalities, power generators, and producers, including for its own upstream properties. Additionally, the company’s gas marketing business moves and optimizes natural gas to markets through transportation and storage agreements on its own strategically positioned assets. The company’s gas and NGL marketing services provide customers with access to diverse sources of supply and to various natural gas demand markets, including the southeastern and gulf coast regions which are the fastest growing natural gas demand regions in the United States. The company’s NGL marketing business transports and markets its equity NGLs from the production at its processing plants, NGLs from the production at its upstream properties, and also NGLs on behalf of third-party NGL producers, including some of its fee-based processing customers, as well as the NGL volumes owned by certain of its equity-method investments. The company uses various contracts in its marketing and trading activities that generally meet the definition of derivatives. The company enters into commodity-related derivatives to hedge exposures to natural gas and NGLs and retain exposure to price changes that can, in a volatile energy market, be material and can adversely affect its results of operations. Crude Oil Transportation and Production Handling Assets The company’s crude oil transportation operations, which are primarily presented in its Transmission & Gulf of Mexico segment. The company’s crude oil transportation business is supported mostly by major oil producers with long-cycle perspectives. Standalone, Market-Based Rate Natural Gas Storage Assets The company’s standalone, market-based rate natural gas storage assets are presented in its Transmission & Gulf of Mexico segment and include its NorTex assets acquired in August 2022 and its Gulf Coast storage assets acquired in January 2024. These natural gas storage assets provide natural gas storage services in interstate commerce under the jurisdiction of the FERC pursuant to the Natural Gas Act or Section 311 of the Natural Gas Policy Act. The company is authorized to charge and collect market-based rates for all of the services that these natural gas storage assets provide. The company stores natural gas for a broad mix of customers, including local natural gas distribution companies, public utilities, municipalities, direct industrial users, electric power generators, and natural gas marketers and producers. Most of these natural gas storage businesses are fully contracted under long-term firm reservation contracts with high credit quality customers. The contracts have various expiration dates and account for the major portion of the entities’ businesses. Additionally, the company offers storage services and interruptible transportation services under shorter-term agreements. Business Segments The company operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments. All remaining business activities, including the company’s upstream operations and corporate activities, are included in Other. Transmission & Gulf of Mexico consists of the company’s interstate natural gas pipelines, Transcontinental Gas Pipe Line Company, LLC (Transco) , Northwest Pipeline LLC (Northwest Pipeline), and MountainWest Pipelines Holding Company (MountainWest), and their related natural gas storage facilities, as well as natural gas gathering and processing and crude oil production handling and transportation assets in the Gulf Coast region, including a 51 percent interest in Gulfstar One LLC (Gulfstar One), a 50 percent equity-method investment in Gulfstream Natural Gas System, L.L.C. (Gulfstream), and a 60 percent equity-method investment in Discovery Producer Services LLC (Discovery). Transmission & Gulf of Mexico also includes natural gas storage facilities and pipelines providing services in north Texas, Louisiana, and Mississippi. Northeast G&P consists of the company’s midstream gathering, processing, and fractionation businesses in the Marcellus Shale region primarily in Pennsylvania and New York, and the Utica Shale region of eastern Ohio, as well as a 65 percent interest in its Ohio Valley Midstream LLC (Northeast JV) which operates in West Virginia, Ohio, and Pennsylvania, a 66 percent interest in Cardinal Gas Services, L.L.C. (Cardinal) which operates in Ohio, a 69 percent equity-method investment in Laurel Mountain Midstream, LLC (Laurel Mountain), a 50 percent equity-method investment in Blue Racer Midstream LLC (Blue Racer), and its equity-method investments with an approximate average 66 percent interest in multiple gas gathering systems in the Marcellus Shale region (Appalachia Midstream Investments). West consists of the company’s gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of south Texas, the Haynesville Shale region of east Texas and northwest Louisiana, the Mid-Continent region which includes the Anadarko and Permian basins, and the DJ Basin of Colorado which includes RMM, a former 50 percent equity-method investment in which the company acquired the remaining ownership interest in November 2023. This segment also includes the company’s NGL storage facilities, an undivided 50 percent interest in an NGL fractionator near Conway, Kansas, a 50 percent equity-method investment in Overland Pass Pipeline Company LLC (OPPL), a 20 percent equity-method investment in Targa Train 7 LLC (Targa Train 7), and a 15 percent equity-method investment in Brazos Permian II, LLC (Brazos Permian II). Gas & NGL Marketing Services consists of the company’s NGL and natural gas marketing and trading operations, which includes risk management and transactions related to the storage and transportation of natural gas and NGLs on strategically positioned assets. Transmission & Gulf of Mexico Interstate Natural Gas Pipeline Assets Transco Transco is an interstate natural gas transmission company that owns and operates an approximately 9,700-mile natural gas pipeline system, which is regulated by the FERC, extending from Texas, Louisiana, Mississippi, and the Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey to the New York City metropolitan area. The system serves customers in Texas and 12 southeast and Atlantic seaboard states, including major metropolitan areas in Georgia, North Carolina, Washington, D.C., Maryland, New York, New Jersey, and Pennsylvania. As of December 31, 2023, Transco’s system had a design capacity totaling approximately 19.1 MMdth/d. Transco’s system included 59 compressor stations, four underground storage fields, and one LNG storage facility. Compression facilities at sea level-rated capacity total approximately 2.5 million horsepower. Transco has natural gas storage capacity in four underground storage fields located on or near its pipeline system or market areas and operates two of these storage fields. During 2023, Transco began partial early service on the Regional Energy Access expansion project, which added approximately 0.5 MMdth/d of firm transportation capacity to its pipeline. In addition, Transco added almost 0.1 MMdth/d of firm transportation capacity by converting certain interruptible transportation feeder capacity to firm transportation. Transco also has storage capacity in an LNG storage facility that it owns and operates. The total usable gas storage capacity available to Transco and its customers in such underground storage fields and LNG storage facility and through storage service contracts is approximately 188 Bcf of natural gas. As of December 31, 2023, Transco’s customers had stored in its facilities approximately 142 Bcf of natural gas. Storage capacity permits the company’s customers to inject gas into storage during the summer and off-peak periods for delivery during peak winter demand periods. Northwest Pipeline Northwest Pipeline is an interstate natural gas transmission company that owns and operates an approximately 3,900-mile natural gas pipeline system, which is regulated by the FERC, extending from the San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington. Northwest Pipeline provides services for markets in Washington, Oregon, Idaho, Wyoming, Nevada, Utah, Colorado, New Mexico, California, and Arizona, either directly or indirectly through interconnections with other pipelines. At December 31, 2023, Northwest Pipeline’s system had a design capacity totaling approximately 3.8 MMdth/d. Northwest Pipeline’s system includes 42 transmission compressor stations having a combined sea level-rated capacity of approximately 476,000 horsepower. Northwest Pipeline owns a one-third undivided interest in the Jackson Prairie underground storage facility in Washington. Northwest Pipeline also owns and operates an LNG storage facility in Washington. These storage facilities have an aggregate working natural gas storage capacity of approximately 10.4 Bcf, which is substantially utilized for third-party natural gas. These natural gas storage facilities enable Northwest Pipeline to balance daily receipts and deliveries and provide storage services to customers. MountainWest Acquisition On February 14, 2023, the company closed on the acquisition of 100 percent of MountainWest Pipelines Holding Company. MountainWest is an interstate natural gas transmission company that owns and operates an approximately 2,000-mile natural gas pipeline system which is regulated by the FERC. The system consists of MountainWest Pipeline, LLC; MountainWest Overthrust Pipeline, LLC; a 50 percent equity-method interest in White River Hub, LLC; and 56 Bcf of natural gas storage capacity, including the Clay basin underground storage reservoir in Utah. MountainWest is located in the Rocky Mountains near six producing areas, including the Greater Green River basin in Wyoming, the Uinta basin in Utah, and the Piceance basin in Colorado. As of December 31, 2023, MountainWest’s system has a design capacity totaling 8.0 MMdth/d. Standalone Natural Gas Storage Assets Gulf Coast Storage Acquisition On January 3, 2024, the company closed on the acquisition of a strategic portfolio of approximately 230 miles of natural gas transmission pipelines and six underground storage facilities with a capacity of approximately 115 Bcf of natural gas storage across Louisiana and Mississippi and direct access to LNG export facilities and interstate pipelines. These assets expand the company’s natural gas storage footprint in the Gulf Coast region. North Texas Assets (NorTex) On August 31, 2022, the company purchased a group of assets in north Texas from NorTex Midstream Holdings, LLC. The NorTex assets include approximately 80 miles of natural gas transmission pipelines and 36 Bcf of natural gas storage in the Dallas-Fort Worth market. In addition to providing gas supply to power generation in north Texas, these assets also provide storage services for Permian gas directed toward growing Gulf Coast LNG demand. Crude Oil Transportation and Production Handling Assets In addition to its natural gas assets, the company owns and operates four deepwater crude oil pipelines and own production platforms serving the deepwater in the Gulf of Mexico. The company’s offshore floating production platforms provide centralized services to deepwater producers, such as compression, separation, production handling, water removal, and pipeline landings. Certain Equity-Method Investments Gulfstream Gulfstream is a 745-mile interstate natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida, which has a capacity to transport 1.4 Bcf/d. The company owns a 50 percent equity-method investment in Gulfstream. The company shares operating responsibilities for Gulfstream with the other 50 percent owner. Discovery The company operates and owns a 60 percent interest in the facilities of Discovery. Discovery’s assets include a 600 MMcf/d cryogenic natural gas processing plant near Larose, Louisiana, a 35 Mbbls/d NGL fractionator plant near Paradis, Louisiana, and a 594-mile offshore natural gas gathering and transportation system in the Gulf of Mexico. Discovery’s mainline has a gathering inlet capacity of 600 MMcf/d. Discovery’s assets also include a crude oil production handling platform with capacity of 10 Mbbls/d and gas handling and separation capacity of 75 MMcf/d. Northeast G&P Gas Gathering, Processing, and Treating Assets This segment includes the company’s natural gas gathering, compression, processing, and NGL fractionation businesses in the Marcellus and Utica Shale regions in Pennsylvania, West Virginia, New York, and Ohio. Other NGL Operations The company owns and operates a 43 Mbbls/d NGL fractionation facility at Moundsville, West Virginia, de-ethanization and condensate facilities at its Oak Grove processing plant, a condensate stabilization facility near its Moundsville fractionator, an ethane pipeline, and an NGL pipeline. The company’s Oak Grove de-ethanizer is capable of handling up to approximately 80 Mbbls/d of mixed NGLs to extract up to approximately 40 Mbbls/d of ethane. The company’s condensate stabilizers are capable of handling approximately 17 Mbbls/d of field condensate. The company also owns and operates 44 Mbbls/d of condensate stabilization capacity, a 135 Mbbls/d NGL fractionation facility, approximately 970,000 barrels of NGL storage capacity, and other ancillary assets, including loading and terminal facilities in Ohio. NGLs are extracted from the natural gas stream in the company’s Oak Grove and Fort Beeler cryogenic processing plants. Ethane produced at the company’s de-ethanizer is transported to markets via its 50-mile ethane pipeline from Oak Grove to Houston, Pennsylvania. The remaining mixed NGL stream from the de-ethanizer is then transported via its 50-mile NGL pipeline and fractionated at either is Moundsville or Harrison County, Ohio, fractionation facility. The resulting products are then transported on truck, rail, or pipeline. Ohio Valley Midstream provides residue natural gas take away options for the company’s customers with interconnections to three interstate transmission pipelines. Certain Equity-Method Investment Appalachia Midstream Investments Through its Appalachia Midstream Investments, the company operates 100 percent of and own an approximate average 66 percent interest in the Bradford Supply Hub gathering system and own an approximate average 68 percent interest in the Marcellus South gathering system, together which consist of approximately 1,049 miles of gathering pipeline in the Marcellus Shale region with the capacity to gather 5,700 MMcf/d of natural gas. The majority of the company’s volumes in the region are gathered from northern Pennsylvania, southwestern Pennsylvania, and the northwestern panhandle of West Virginia in core areas of the Marcellus Shale. The company operates the assets primarily under long-term, 100 percent fixed-fee gathering agreements that include significant acreage dedications. Additionally, some Marcellus South agreements have MVCs. Laurel Mountain The company operates and owns a 69 percent interest in a joint venture, Laurel Mountain, which includes a 1,147-mile gathering system in western Pennsylvania with the capacity to gather 0.9 Bcf/d of natural gas. Laurel Mountain has a long-term, dedicated, volumetric-based fee agreement, with exposure to natural gas prices, to gather the anchor customer’s production in the western Pennsylvania area of the Marcellus Shale. Additionally, certain Laurel Mountain agreements have MVCs. Blue Racer The company operates and owns a 50 percent interest in Blue Racer. Blue Racer is a joint venture to own, operate, develop, and acquire midstream assets in the Utica Shale and certain adjacent areas in the Marcellus Shale. Blue Racer’s assets include 616 miles of gathering pipelines and the Natrium complex in Marshall County, West Virginia, with a cryogenic processing capacity of 800 MMcf/d and fractionation capacity of approximately 134 Mbbls/d. Blue Racer also owns the Berne complex in Monroe County, Ohio, with a cryogenic processing capacity of 400 MMcf/d, and 101 miles of NGL and condensate pipelines connecting Natrium to Berne. Blue Racer provides gathering, processing, and marketing services primarily under percent-of-liquids and fixed-fee agreements. West DJ Basin Acquisitions On November 30, 2023, the company closed on the acquisition of 100 percent of Cureton Front Range, LLC and the acquisition of the remaining 50 percent interest in Rocky Mountain Midstream Holdings LLC, both of which operate midstream assets in Colorado’s DJ Basin. The Cureton Acquisition includes gas gathering pipelines and two processing plants, one of which is idled. The RMM Acquisition was the purchase of the company’s partner’s 50 percent interest, resulting in 100 percent ownership by it. RMM includes a natural gas gathering pipeline, an approximate 100-mile crude oil transportation pipeline, and natural gas processing assets in the DJ Basin. It also includes crude oil storage and compression assets. Trace Acquisition On April 29, 2022, the company closed on the acquisition of 100 percent of Gemini Arklatex, LLC through which it acquired the Haynesville Shale region gas gathering and related assets of Trace Midstream. The purpose of this acquisition was to expand the company’s footprint into the east Texas area of the Haynesville Shale region, increasing in-basin scale. Other NGL Operations The company owns interests in and/or operate NGL fractionation and storage assets in central Kansas near Conway. These assets include a 50 percent interest in an NGL fractionation facility with capacity of slightly more than 100 Mbbls/d and the company owns approximately 23 million barrels of NGL storage capacity. The company also owns a 189-mile NGL pipeline from its fractionator near Conway, Kansas, to an interconnection with a third-party NGL pipeline system in Oklahoma. Certain Equity-Method Investments Overland Pass Pipeline The company operates and owns a 50 percent interest in OPPL. OPPL is capable of transporting 255 Mbbls/d of NGLs and includes approximately 1,035 miles of NGL pipeline extending from Opal, Wyoming, to the Mid-Continent NGL market center near Conway, Kansas, along with extensions into the Piceance and DJ basins in Colorado and the Bakken Shale in the Williston basin in North Dakota. The company’s equity NGL volumes from its Wyoming plants and its Willow Creek facility in Colorado are dedicated for transport on OPPL under a long-term transportation agreement. NGL volumes from RMM are also transported on OPPL. Brazos Permian II The company owns a 15 percent interest in Brazos Permian II, a privately held Permian basin midstream company. Targa Train 7 The company owns a 20 percent interest in Targa Train 7, a Mt. Belvieu, Texas, fractionation train. Gas & NGL Marketing Services The company’s natural gas marketing business provides asset management and the wholesale marketing, trading, storage, and transportation of natural gas for a diverse set of natural gas and electric utilities, municipalities, power generators, and producers and markets natural gas from the production at its upstream properties. The Sequent Acquisition in July 2021 significantly increased the scope of its natural gas marketing operations. The company’s NGL marketing business transports and markets its equity NGLs from the production at its processing plants, NGLs from the production at its upstream properties, and also NGLs on behalf of third-party NGL producers, including some of its fee-based processing customers. Other Other includes the company’s upstream operations and minor business activities that are not reportable segments, as well as corporate operations. Upstream Ventures The company acquired certain crude oil and natural gas properties in the Wamsutter basin in February 2021. These properties were conveyed to a venture in the third quarter of 2021 along with certain oil and gas properties conveyed by a third-party operator in the region. Under the terms of the agreement, the third party owns a 25 percent and the company owns a 75 percent undivided interest in each well’s working interest. The company will retain ownership in the undeveloped acreage until certain acreage earning hurdles are met, at which time the third party will receive an additional 25 percent of any new wells and 50 percent of the remaining undeveloped acreage resulting in the third party owning 50 percent and it owning 50 percent. The combined properties consist of over 1.2 million net acres and an interest in over 3,500 wells. Certain natural gas properties in Louisiana were transferred to the company in November 2020 as part of a bankruptcy resolution with one of its customers. In the third quarter of 2021, it sold 50 percent of the existing wells and wellbore rights in the South Mansfield area of the Haynesville Shale region to a third party operator, in a strategic effort to develop the acreage, thereby enhancing the value of its midstream natural gas infrastructure. Under the agreement, the third party operates the upstream position and develops the undeveloped acreage. The third party’s interest in new wells increased to 75 percent in early 2023 when a certain drilling hurdle was met. The company retained ownership in the undeveloped acreage until a separate acreage earning hurdle was met in the fourth quarter of 2023, at which time remaining undeveloped acreage was conveyed to the third party resulting in the third party owning 75 percent and it owning 25 percent. New Energy Ventures Other segment also includes investments in new energy ventures related to hydrogen, solar, renewable natural gas, and NextGen Gas. NextGen Gas is natural gas that has been independently certified as low emissions gas across all segments of the value chain. Regulatory Matters The company’s gas pipeline interstate transmission and storage activities are subject to FERC regulation under the Natural Gas Act of 1938 (NGA) and under the Natural Gas Policy Act of 1978, and, as such, the company’s rates and charges for the transportation of natural gas in interstate commerce, accounting, and the extension, enlargement, or abandonment of the company’s jurisdictional facilities, among other things, are subject to regulation. Each of the company’s gas pipeline companies holds certificates of public convenience and necessity issued by the FERC authorizing ownership and operation of all pipelines, facilities, and properties for which certificates are required under the NGA. The company also owns interests in and operate natural gas liquids pipelines that are regulated by various federal and state governmental agencies. Services provided on the company’s interstate natural gas liquids pipelines are subject to regulation under the Interstate Commerce Act by the FERC, which has authority over the terms and conditions of service; rates, including depreciation and amortization policies; and initiation of service. The company’s intrastate natural gas liquids pipelines providing common carrier service are subject to regulation by various state regulatory agencies. The company’s gas pipelines are subject to the Natural Gas Pipeline Safety Act of 1968, as amended, the Pipeline Safety Improvement Act of 2002, the Pipeline Safety, Regulatory Certainty, and Jobs Creation Act of 2011, and the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2016 and 2020, which regulate safety requirements in the design, construction, operation, and maintenance of interstate natural gas transmission facilities. The United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) administers federal pipeline safety laws. The company has an enterprise-wide Gas Integrity Management Plan that meets the PHMSA final rule that was issued pursuant to the requirements of the Pipeline Safety Improvement Act of 2002. The company has an enterprise-wide Liquid Integrity Management Plan that meets the PHMSA final rule that was issued pursuant to the requirements of the Pipeline Safety Improvement Act of 2002. The company has established and received the Transportation Security Administration (TSA) approval for the company’s Cybersecurity Implementation Plan and is compliant with the remaining requirements established in Security Directives 1B (Security Directive Pipeline-2021-01B) and Security Directive Pipeline-2021-02C (Security Directive 2C). The Texas Railroad Commission has the authority to regulate the terms of service for the company’s intrastate natural gas gathering business in Texas. The company’s intrastate liquids pipelines in the Gulf Coast are regulated by the Louisiana Department of Natural Resources, the Texas Railroad Commission, and various other state and federal agencies. These pipelines are also subject to the liquid pipeline safety and integrity regulations discussed above since both Louisiana and Texas have adopted the integrity management regulations defined in PHMSA. The company’s offshore gas and liquids pipelines located on the outer continental shelf are subject to the Outer Continental Shelf Lands Act, which provides in part that outer continental shelf pipelines ‘must provide open and nondiscriminatory access to both owner and non-owner shippers.’ History The Williams Companies, Inc. was founded in 1908. The company was incorporated under the laws of the state of Nevada in 1949 and reincorporated under the laws of the state of Delaware in 1987.