Statement About Natural Gas Safety

South Jersey Gas provides natural gas service to homes and businesses in the seven southern counties of New Jersey.

As a company, public safety and the safe operation of our gas pipelines is our number one priority.

It is our responsibility and priority to keep you informed about our work to ensure the safety of our systems and the public.

Even if you are not our customer, you may live, work, gather or own property adjacent to our pipeline system.

We operate under a strict set of requirements to ensure that our pipelines are safe. This includes New Jersey’s pipeline safety regulations, which are some of the most stringent in the country, as well as those set by the federal government.

As of Dec. 31, 2010, SJG operated approximately 120 miles of transmission pipeline, 5,900 miles of distribution main and more than 340,000 associated services lines (lines connecting homes or businesses to the main) throughout our region.

We are required by regulation to perform monthly inspections of our transmission pipelines to observe surface conditions on pipeline rights-of-way, check for indications of leaks, construction activity, and other factors which may affect safety and operation.

Federal regulations regarding inspections on transmission lines in high consequence areas mandate that we complete those inspections by December 2012. SJG expects to have those inspections completed one year early in December 2011.

Additionally, we survey all of our distribution mains each year, which goes beyond our regulatory requirements, and make improvements when needed to ensure their safe operation.

It’s important to note that within the past 20 years, we have not seen any major pipeline incident occur in our service area.

We believe our consistent safe operation can be attributed to two main objectives:

• Our frequent and thorough system surveys to ensure both safety and reliability.
• And most recently, our work in conjunction with the NJBPU to accelerate infrastructure improvements throughout our service territory.

This focus on infrastructure enhancement will only increase as we continue to grow our service territory and customer base.

Throughout all of our operations, now and in the future, safety will always be our top priority.