James C. Kneale Executive Vice President, Natural Gas Liquids Terry Spencer Executive Vice President, Natural Gas Liquids

Good day, ladies and gentlemen and welcome to the ONEOK and ONEOK Partners First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] I would now like to introduce your host for today's conference call, Mr. Dan Harrison. You may begin, sir.

Thank you. Good morning and welcome everyone. As we begin this morning's conference call, I remind you that any statements that might include ONEOK or ONEOK Partners' expectations or prediction should be considered forward-looking statements, which are covered by the Safe Harbor provision of the Securities Acts of 1933 and 1934. It's important to note that actual results could differ materially from those projected in such forward-looking statements. For a discussion of factors that could cause actual results to differ, please refer to ONEOK's and ONEOK Partners filings with the Securities and Exchange Commission. And now John Gibson, who serves as CEO of ONEOK and Chairman, President and CEO of ONEOK Partners. John?

Thanks, Dan and good morning everyone. Thank you for participating in our call today. Joining me are Jim Kneale, ONEOK President and Chief Operating Officer; Curtis Dinan, Senior Vice President and Chief Financial Officer for both ONEOK and ONEOK Partners; Pierce Norton, ONEOK Partners Executive Vice President of Natural Gas; and Terry Spencer, ONEOK Partners Executive Vice President of Natural Gas Liquids. Here is our agenda this morning. Following a few opening remarks, we'll discuss ONEOK Partners first and then review ONEOK. Curtis will start us off and review ONEOK Partners financial performance followed by Pierce and Tarry who will review the partnership's operating performance. Then Curtis will return to review ONEOK's financial performance and Jim will review ONEOK's operating performance. Then I'll make a few closing comments before we take your questions. ONEOK had a solid first quarter with strong performances by ONEOK Partners and the Distribution segment. Energy Services had a good quarter although lower than the first quarter a year ago. ONEOK Partners was up more than 50% in the quarter. Higher commodity prices and wider NGO price spreads as well as volume growth in all four of the partnership’s business segments contributed to the increase. Volume growth was exceptionally strong in both the Natural Gas Liquids segments, which Terry will discuss in more detail. Our Distribution segment’s results were higher than a year ago primarily as a result of colder temperatures and increased volumes in Kansas and Oklahoma. In addition, the segment’s continued focus on reducing operating costs through its process improvement efforts is also yielding results. Energy Services earned $74.3 million in the quarter, which was lower than the same period last year primarily because of fewer storage and marketing optimization opportunities as a result of colder weather, but still a solid quarter. Jim will…

Thank you, John and good morning. ONEOK partners began 2008 with a really strong first quarter. Net income increased 51% to $145 million or $1.48 per unit compared with $96 million or $1 per unit in the first quarter of 2007. Distributable cash flow increased to $159 million compared with $117 million in the first quarter of 2007. During the first quarter of 2008, our Gathering and Processing segment benefited primarily from strong commodity prices. Looking forward in 2008, we have hedged in excess of 72% of our commodity price exposure providing additional earnings stability. Our natural gas liquids gathering and fractionation business benefited from wider regional commodity price spreads and increased volumes. Our natural gas liquids pipeline segment benefited from the North System acquisition that was completed during the fourth quarter of 2007 and increased throughput related to new NGL supply connections. During the first quarter of 2008 the partnership spend $259 million on its internal growth capital program, primarily for the Overland Pass Pipeline and related NGL infrastructure upgrades and the Arbuckle Pipeline. These expenditures were initially financed with our revolving credit agreement. In March of this year, the partnership completed a public offering of 2.5 million common units and a private placement of 5.4 million common units with ONEOK, Inc. Combined with the 2% general partner contribution and the underwriters exercise of the over allotment option in April, the partnership received net proceeds of approximately $460 million. A portion of these proceeds were used to repay the amounts outstanding under the partnership’s revolving credit agreement and the remaining proceeds will be used to fund additional capital expenditures during this year. With the completion of these equity offerings, a debt-to-capital ratio of 49% and $1 billion available under the revolving credit agreement, the partnership is well positioned to continue executing on its growth capital program that is expected to contribute incremental EBITDA later this year as the various projects come online. Recently, ONEOK Partners increased its quarterly distribution to an annualized rate of $4.16 per unit. This is the ninth consecutive distribution increase since the dropdown of the ONEOK assets in April of 2006. During this period, the partnership has increased distributions by 30% demonstrating our commitment to growing unit holder distributions. John, that concludes my remarks regarding the partnership’s financials.

Thanks, Curtis. Let's now review the operating results of ONEOK Partners, which consists, as a reminder, of four segments, two in natural gas and two in natural gas liquids. First, Pierce Norton will discuss the two natural gas segments Gathering and Processing and Natural Gas Pipelines. Pierce?

Thanks, John, and good morning. The Natural Gas Gathering and Processing segment’s first quarter operating income nearly doubled compared with the same period last year. Natural gas liquid, natural gas and crude oil prices were the primary driver of the increase. This segment also benefited from increased throughput, primarily due to a higher drilling activity. Our contract mix by volume remain relatively unchanged at 61% fee based, 31% of proceeds and 8% keep-whole, which are the contracts that are affected by processing spreads. In addition to having less than 10% of our volumes susceptible to the processing spread, 85% of our keep-whole contracts contain conditioning language, allowing them to convert to a fee when processing spreads are negative. When you combine all of our commodity-affected contracts, percent of proceeds and keep-whole, the greatest sensitivities are to natural gas liquids and crude oil prices. We've taken steps to minimize the risk associated with price movements by locking in prices for the remainder of 2008 on 72% of our expected production on both NGLs and condensate at an average price of $1.39 per gallon. We've also placed hedges for the remainder of the year on our expected natural gas volumes with 78% locked in at $9.23 per MMBtu. Now taking a look at our growth activity in our Natural Gas Gathering and Processing segment. The final phase of the $110 million Fort Union Gas Gathering system expansion in the Powder River Basin is still expected to go into service during the second quarter. As a 37% owner Fort Union, our equity earnings will continue to increase in the future with the completion of this project. As a reminder, the capital of this expansion was project financed and the additional capacity has been fully subscribed for ten years. We expect to complete the…

Thanks, Pierce. Now, Terry Spencer will review the two natural gas liquid segments, Gathering and Fractionation in NGL Pipelines. Terry?

Thank you, John, and good morning everyone. The natural gas liquid segments had another exceptional quarter. Let's take a look at both the NGL segments. The Natural Gas Liquids Gathering and Fractionation segment’s first quarter operating income increased 42% over the same period last year. Higher product price spreads between Conway, Kansas and Mont Belvieu, Texas were the main driver of the increase allowing us to capture optimization opportunities across the system. Mid-continent NGLs gathered and fractionated continued to grow and have increased more than 20% when compared with the same period in 2007. And looking back over the times, since we acquired the NGL assets in July 2005, we have grown volumes 30% adding over 60,000 barrels of the NGLs per day. This growth has led to asset utilization rates of more than 90% and one of the key drivers for our $216 million in expansion projects underway in our NGL storage fractionation and pipeline infrastructure in Kansas and Oklahoma. This increased infrastructure capacity coming online during 2008 will accommodate our new NGL supplies from the Rockies as well as future growth in the Mid-Continent. We also recently announced another expansion of our Oklahoma gathering system to connect two new processing plants in the Woodford Shale and Southeast Oklahoma. The $25 million expansion of 6 inch and 8-inch gathering pipeline is currently under construction and scheduled for completion in the second quarter of 2008. These new plants will have the ability to produce approximately 25,000 barrels per day of NGLs. During 2008, we will remain focused on adding new NGL supplies to our Mid-Continent system and by year-end we expect to have added approximately 36,000 barrels per day of NGLs from new plant connections. Our Natural Gas Liquids Pipeline segment also had an outstanding first quarter with operating income…

Thanks, John. ONEOK's net income in the first quarter of 2008 was $144 million or $1.36 per diluted share compared with net income of $153 million or $1.36 per diluted share in 2007. While net income decreased slightly, the share repurchase we completed in 2007 positively affected earnings per share. All of ONEOK segments performed very well during the quarter. As Jim will describe in more detail, the Distribution segment's operating income increased slightly to $109 million and Energy Services operating income was strong at $74 million but under the last year's $120 million. As previously described, our ONEOK Partners segment performed very well during the quarter. Following the partnership’s recent distribution announcement, its annualized distribution has increased by $0.20 compared with one year ago. This distribution increase creates an additional $8.5 million of annual cash flow from the limited partner units that ONEOK owns. Also compared with one year ago, the insinuate [ph] distributions to ONEOK's general partner interest had increased by $23 million annually. With the growth forecast by ONEOK Partners from its $1.6 billion of internal growth projects in the recently completed North System acquisition, we expect future distribution increases will continue to create earnings and cash flow growth for ONEOK. During the quarter, ONEOK invested approximately $300 million to acquire an additional 5.4 million common units from one of ONEOK Partners in a private placement transaction demonstrating a significant commitment to ensure the continued growth of ONEOK Partners. Including the general partner interest ONEOK, now owns 47.7% of ONEOK Partners. During the first quarter of 2008, ONEOK retired $400 million of matured long-term debt and ended the quarter with a stand-alone debt to capital ratio of 48%. Stand-alone cash flows from operations excluding the effects of working capital exceeded capital expenditures and dividends by $79 million. For 2008, we anticipate that free cash flows will be in the $160 million to $200 million range. John, that concludes my remarks. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Thanks, Curtis. Now, Jim Kneale will review ONEOK's operating performance. Jim?

Thanks, John and good morning. As Curtis just mentioned, the Distribution segment delivered solid results with operating income of $109 million in the first quarter. Margins were up and expenses down as compared with the same period last year. Volumes were positively affected by colder weather in Oklahoma and Kansas. However, margins were moderated somewhat by weather normalization mechanisms, but reflect a slight increase due to new rates in Oklahoma and Texas. Transportation volumes were also higher in both Oklahoma and Kansas. From an expense standpoint, our focus on cost control that John mentioned through process improvement initiatives has helped us manage our operating cost as we improve and standardize business practices across our three utilities. In addition, our bad debt levels have remained stable even in this high natural gas price environment. We also continue to work on the regulatory front. A new capital recovery mechanism in Oklahoma that was approved in February is allowing us to recover and earn a return on certain capital investments more quickly. It is expected to add $7.6 million in margins this year. Last week the Texas Railroad Commission approved a $1 million rate case in our South Texas jurisdiction. Included in this decision are a returns on equity of 10.425% and increased monthly residential customer charge from $5 to $15, a weather normalization adjustment clause, recovery of gas related bad debts and authorization to hedge the cost of gas using financial instruments. These new rates will become effective with the May billing cycles. Looking forward, the Distribution segment will continue to execute on its integrated strategy focusing on rates and growth through efficient investment and cost control. Now, turning to our Energy Services segment. We had a good first quarter in a challenging market environment with operating income of $74 million, which…

[Operator Instructions] Our first question comes from Michael Blum with Wachovia.

Hi, good morning everyone.

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Hello, Michael.

Couple of questions, one if you just... I just want to make sure I heard that right, you commented John at the end, did you say you're looking at potential projects that would cost in a range of $3 million to $500 million per year for those five years that you'd outlined?

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: That's correct.

Okay.

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: But just to be... just to clarify that those expenditures would occur in that timeframe. They're not occurring between now and 2010.

Okay, understood. Second question was just as it relates to the guidance for ONEOK Partners. So, I guess, the question really is are you not increasing the guidance? Is that conservatism, do you have a particular view of commodity prices going forward or is it or is it just related to the comments you made on Overland Pass?

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, actually, I think you may have answered your question for us. We do have a fairly wide range and we feel very confident in that range. As it relates to, in particular Gathering and Fractionation as Terry pointed out, we see increasing margins and have seen increasing margins in that business. And that has helped us, as we look forward today to potential offsets and the delay with Overland Pass Pipeline revenues inside the Natural Gas Liquids Pipeline segment. So, we feel pretty confident in that piece. And this issue of conservatism, I think that is a long standing... that's hard to say reputation but trade of our company.

Okay. Last question.

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Touch the two. That's okay.

I'll be quick. Do you see consolidation happening in MLP space this year in the next 12 months and could you potentially see yourself being involved as a consolidator?

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, that's an interesting question. If there is consolidation, we see ourselves as a participant and as consolidator. Will we see at this year, as we stand here today, I don't see or nor have any signs. And going along with our conservatism, we're probably also not going to be real disclosing about our views of the future either.

Thank you very much.

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Yes, sir.

Our next question comes from Dave Morrin [ph] with Merrill Lynch.

Hi, good morning everybody. This is Tom Kinkade [ph] calling in for Dave Morrin.

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Good morning.

Firstly, could you talk a bit about the drivers behind year-over-year increase in Keep-Whole contracts as a percentage of net margin at the Gathering and Processing segment?

- Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Pierce? We'll give that one to Pierce and then I'll add a little color.

I'll tell you what I'm going to... I might ask you to repeat the question, because I couldn't really hear you.

Okay. Could you talk a bit about the drivers behind the year-over-year increase in Keep-Whole contracts as a percentage of net margins at the G&P segment?

Well, I don't think that the percentage increase, number one, was material, but we've taken enterprise look at all of our portfolio of that we have and we look at it in terms of natural gas liquids and natural gas and assess our long or short position. So, hopefully I answered your question, but I don't think it's really a material look in that. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Yes, I might add the margin increased... not the volume under Keep-Whole but the margin... percent of margin increased, in assets which you are referring to, it's primarily because the spreads increased so much more related to a year ago. I think in the press release, I can't remember, I think we went from 6% to 18% or 20%.

Yes, that's 18%. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: If you look at the shrink volume or MMBtus, I think you'll see that that was the relatively the same which indicates the volume hasn't changed, but what has changed is that spread and of the top of my head, I just can't remember what that was, but it's like maybe as much as twice as much.

Okay.

Which would make sense.

Okay. Thanks. And secondly, at some of your expansion projects, has your strategy with respect to signing on incremental volumes changed at all as a result of confidence in capital cost and any cost inflation there? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: No, it hasn't. I mean, our philosophy has been, if you just start from the beginning, we look for… we try to understand as best we can, what's going on in this world of supply, regardless of the commodity and likewise demand and then we look for opportunities to remove constraints. And so, we go out and try to get anchored tenants, if you will, to our projects and then we optimize that position by adding incremental barrels. And as both Terry and Pierce have commented, we remain very active on, with producers in particular our primary customer, on adding incremental barrels to our... barrels or Mcfs to our projects.

Okay. Thanks very much. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Yes, sir.

[Operator Instructions]. Our next question comes from Kathleen Vuchetich with W.H. Reaves.

Good morning. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Good morning, Kathleen.

How are you guys doing? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Fine, thank you.

Good. I was wondering if you could give me what the capital budget is currently for both OKS and OKE this year. Have you dialed in the higher cost into capital budget expectations? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Let me turn that over to Curtis, I think he has got the numbers. He is frantically --.

And do you have a view of whether or not the '09 capital budgets for both companies will decline as a lot of these projects start to come on line? Do you expect the budgets next year to be lower than the '08 number? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, let's... I just want to make sure we make the distinction clear that the capital that you're referring to will be within cap... ONEOK Partners.

Right. I understand that. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Okay. I'm sorry. Well, with that caveat, then we can --.

Kathleen, at the partnership growth capital is just a little bit under $1 billion, are updated for 2008 and then the maintenance dollars are flat still at $91 million.

Okay. And for Distribution and Energy Services at OKE?

Distribution, we haven't had any change. It's still at $170 million.

Okay.

And then the balance that we have at corporate and Energy Services is that combined about $12 million.

Thank you. So, should we accept the OKS $1.1 billion to decline in '09 as these projects start to near completion?

Yes. And then in the comments we gave you some color as to what we think you could assume going forward from say 2010 to 2015.

Okay. So, '09 will be kind of an interim year, that’s what we are kind of thinking on capital spending?

Yes, it's a year of completion.

Okay. That’s fair

2008 and 2009 and then we have other things that will be kicking off.

Okay. Having had, at Energy Services, having had a year where you had to buy some spot gas because of the real surge in demand due to cold weather, are you looking at adding additional storage capacity to avoid having that, occur again or do you feel that... because the winter was so extremely cold there was an [inaudible] and not really needing additional storage capacity?

Kathleen, good morning, this is Jim.

Hi, Jim.

That's a good question and the short answer and then let me give you more background, just to overcome that phenomena, we don't anticipate acquiring more storage.

Okay.

And the longer answer is... this is probably the third time that I can recall over our ten years that we have seen this phenomena where it just all of the weather forecast indicated it was going to be a warm first quarter and it turned out to be cold. So as we set up our months, we weren't as long flowing gas as we could have been had we suspected it was going to be that cold.

Okay.

So but that said, the impact of that part of the business and that... where we had to grow wasn't the main driver of the change from '07 to '08. It was more... I'll just take you back, there were still a lot of impact from the hurricanes in the first quarter of '06, '07.

Yes.

And spreads were extremely high, summer to winter that we had been able to lock in, as compared to what they were at this first quarter, which again gets back to the basis of this business as I know you understand.

Sure.

Summer-winter spread is important.

Jim, with the extraordinarily cold weather, have you had interest from additional utility customers given how difficult it was for some of them to manage supply with the cold surges. Does this help your marketing efforts?

Kathleen, not yet. I think everybody is still coming out of the winter and then they will begin assessing their next winter supply probably in the next few months. I think that's... that means probably a logical conclusion but we haven't seen that yet.

Okay. Thanks very much guys.

You're welcome.

Our next question comes from the Jonathan Lanfear with Wachovia.

Good morning, guys John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Good morning, Jonathan.

Just a quick question following up on the last caller, Energy Services, could you give us an idea, what percentage of operating income is contracted and maybe not subject to some of the volatility? And just secondly if maybe you can comment, if you continue to see some of this abnormal extraordinary weather patterns, would you consider scaling back in that business? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, let me… we've known for some time that this business is a business that’s subject to basis and spread. And on some of our past presentations, we've talked about how... what those sources of income are on a relative basis and of course our Energy Services people are always looking for opportunities to take advantage of market inconsistencies. The optimization piece that you're referring to in the past is represented roughly about 10% of our business and thereabouts. But scaling backward a relative percentage, I don't know Jim, I might ask if you have any comments you want to make?

I would just probably add to that. First, John, I mean... I don't mean this as an excuse, but the business is pretty complex and in past presentations, we've tried to just kind of point to a few things that drive it. And of course, that I just said, the summer-to-winter spread, when you have 90 Bcf to 100 Bcf of gas storage that’s one big driver. But you can't take it in the vacuum, because we also pay for leasing storage, we receive demand fees from customers. If there is volatility in the market, we are able to roll gas in and out of storage and capture additional margins. So I guess what I'm trying to say is there is not any one indicator, but there are a couple indicators that can give you a sense of the business that summer-to-winter spread being one and just the volatility and natural gas price being the other. So in terms of our scaling the business back, we continually look at the assets we lease, the returns we're getting from those and making decisions on what to renew or not we know. So that's just an ongoing part of our business.

Great. I appreciate it. Thanks. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Jonathan, did that answer your question?

I think so, yes. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Okay.

Our next question come from Brooke Mullin with J.P. Morgan.

Thank you. On the -- John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Good morning.

On the Overland Pass, you mentioned the ability to increase the capacity there with pump facility. Could you give us a sense of the capital cost? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, as we mentioned, there is a couple of charges. The first one is an incremental move to, I think, a 150 and then it goes to like 220. So you have different levels and Terry, do you have any direction here?

Sure John. As far as the increase in capacity, generally what we're looking at are additional pump facilities that we would install along the pipeline. And those pump facilities come generally the cost in the neighborhood of $3 million to $5 million per pump station. So if you looked at an increase to 220,000 barrels per day, we're looking at an increase in pump facilities of about seven... that is seven separate pump stations. So you can do the math on that and get a feel for it and a flavor for the cost. So, it's not like a major line loop that you might expect. So, it's... we designed the pipe with sufficient diameter where we could easily layer in fairly low cost incremental capacity expansions.

Great, thank you. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Yes. I would add one of the unique things about expanding our NGL pipeline infrastructure is the low cost of capital required to add these increments and you add these increments when you have a need or a demand and so usually they are backed by a producer or a customer. But we always had the probity to increase the pipeline capacity at risk.

Our next question comes from Mark Easterbrook with RBC Capital Markets.

Hi, good morning. Quick question again on CapEx. Aside from the Guardian project, has any cost of any project changed materially since January? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: The only comment... the answer is no. But the only comment that was made was by Terry Spencer, which not knowing where we are going to end up. We know where we are going to end up, which is we are going to finish the last 60 miles of the pipeline. When we do that, we are in the process of working with the various federal agencies involved and so we're just, I think we said something in the order of magnitude that we don't expect anything beyond 10% but, certainly there... our inability to agree is to when we can go back and finish that pipe is doing nothing but delaying us. And there... we're just saying there may be some cost associated with that.

Okay. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: But, we are hopeful that they... we are hopeful that they, although we all have the best interests of the wildlife and the sage grouse in mind, we're hopeful that we are able to find a way we can move forward quickly.

Okay. And my question is more related to projects outside of Guardian, MG&A cost for materials or labor in other projects? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: No.

No? Okay. And then secondly, just looking out into the futures market. I mean obviously you're benefiting from a very strong commodity pricing environment and the second quarter is probably going to play out very much in the same fashion. How much longer can this type of environment go forward, if you look out into the futures market… I guess my question is how far out can you guys hedge? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, I'm pretty sure in the press release we are hedged... we have information with regard to gathering and processing, which is where most of our exposure is for the balance of this year. Pierce is --

I think the question was how far out have we hedged, that's through 2008. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: So which is the balance of this year?

Right. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Your question is for as how long.

Yes. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, that's a tough one for us to answer. I think there are... I think you all read the same things we read. There is just a whole lot of different external factors that affect the price of crude and affect the price of natural gas. We are not predictors rather we structure our business so that we can may make money in any environment and our people are always attempting to do so. It appears this is editorial, but it appears that this strong price environment will continue. And there are... as I said others much smarter than we that are also saying the same.

Okay, thanks.

Our next question comes from Rebecca Followill with Tudor Pickering.

Hi, two more questions for you. On storage, given the lower spreads and the lower volume [ph], would you guys consider dropping some of the lease storage that you have? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, Rebecca…

Not renewing contracts? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, we’d look at that constantly, but again the storage that we lease is, I mean its sort of a continuous process. As we sign up LDC customers to sell gas to, we've got to have storage to sell that service and the variable there is how wide is the summer-to-winter spread going to be. That said, we every year go through and try to look at our various facilities and the returns we might make and try to make predictions about the summer-winter spread and volatility. So that's a long way to say, yes. There is a potential, we could not renew some storage.

And in fact, we... there has been storage we have not renewed. So the energy services people do, if you will, a marginal analysis on their storage positions to determine whether or not the value created by that storage position is flowing through to the demand fees that we are receiving. Obviously, we benefit from the partnership with rising storage fees that disadvantage to Energy Services and so they are always in this risk reward review.

Thanks. And then the other question is on the new areas that you talked about CapEx 2010 to 2015. Is that... or the new capital that you would spend, is that in the existing core areas where you really operate or would you branch out? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Well, the short answer is we would branch out if we felt it was strategic and would benefit the company long-term. The numbers that we're referring to are primarily what I will say are either internal to the footprint, expansions or add-on as opposed to step out.

Thank you very much. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: You're welcome.

[Operator Instructions] Our next question comes from Robin Levine with JPMorgan. Robin Levine – J.P. Morgan: Hi, how are you? John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Hi, Robin, how are you doing? Robin Levine – J.P. Morgan: Good. I had a question on the debt side. You mentioned your revolver availability at OKF is completely available to you. If you could give me the revolver availability at the OKE level and if you might comment on your appetite if any to access debt markets at either entity?

Yes, Robin, this is Curtis. At ONEOK, we have a $1.2 billion revolver and we actually used that to backstop our commercial paper program. At the end of the quarter, we had about $265 million of commercial paper outstanding. So more than 1 billion of capacity there. In terms of accessing the debt markets this... next year or the balance of 2008, we don't have any current plans to do that. We feel pretty good position with both of the companies. Robin Levine – J.P. Morgan: Thank you.

You are welcome. John W. Gibson - Chief Executive Officer, ONEOK, Inc.; Chairman, President and Chief Executive Officer, ONEOK Partners, L.P.: Okay, well. Thank you everyone. This concludes the ONEOK and ONEOK Partners call. As a remainder, our quite period for the second quarter will start when we close our books in early July and will extend until earnings are released. We will provide you with the reporting date and conference call information for the second quarter at a later date. Christy Williamson and I are available throughout the day for any follow-up questions. Thanks for joining us, and have a good day.

Ladies and Gentlemen, this does conclude today’s presentation. You may now disconnect.