CNG Merger FAQs

As a holder of unexchanged CNG stock you are entitled to receive $66.60 for each share that you owned as of January 28, 2000, the effective date of the CNG/Dominion merger. Because these funds have been available to you since that time, they are being reported to you and to the Internal Revenue Service as cash received during 2000.

Complete the Letter of Transmittal that was enclosed with your 1099B. If there are no name changes or special delivery instructions please:

• Insert the name and address as listed on the CNG stock certificates.
• Insert the certificate number(s) and number of shares for each in the space provided. (If any of your certificates are lost, call 1-888-294-4106 for instructions.)
• Sign the Letter of Transmittal in the block titled "Signature Required/Signature of Registered Holder or Agent."
• Send the Letter of Transmittal along with your stock certificate(s) to the address shown on the Letter of Transmittal. We recommend registered mail-properly insured with return receipt requested.
• Allow about four weeks to receive your check.

If you need to provide special payment or special delivery instructions, please carefully read and follow the instructions detailed on the back of the Letter of Transmittal.

The exchange agent, ChaseMellon Shareholder Services, will not release your funds to you until you turn in your stock certificates. Depending upon the unclaimed property laws of your state, if your shares are still unexchanged after a period of three to seven years, your certificate will be automatically cancelled and funds for your shares will be turned over to the state in which you reside. You or your heirs will then have to go through your state’s Department of Unclaimed Property to recover the funds.

For the number of CNG shares exchanged, refer to the statement provided on the check stub sent to you at the time of the exchange.

You should refer to your records to determine the cost basis and holding period for your CNG shares. Shares acquired through dividend reinvestment are treated as blocks of stock acquired at different times. To determine the cost of shares purchased through reinvestment, you should refer to copies of your statements. A computerized history of your reinvestment plan account is not available, however, you may obtain copies of your statements by calling EquiServe at 1-201-324-0313 or by writing to them at the following address:

EquiServe, c/o shareholder Services, P.O. Box 2500, Jersey City, NJ 07303-2500. General price information is available by clicking on CNG Share Price List.

Replacement checks can be issued 10 days after the issuance of the original check. Please call or write Dominion, Shareholder Administration informing us of the loss.

Please refer to your CCH Capital Changes Reporter for counsels opinion on the taxability for the merger of Dominion Resources, Inc. and Consolidated Natural Gas Company. You can also get information by viewing our "CNG Merger Tax Information."

For additional discussion of federal income tax consequences of the Dominion/CNG merger, please refer to the section entitled "Material U.S. Federal Income Tax Consequences" of the joint proxy statement/prospectus (FormS-4), filed with the SEC on May 24, 1999.

In the exchange, cash was paid in lieu of a fractional Dominion share at the rate of $40.625 per full share.

The cash-in-lieu amount was reported on a separate 1099-B. This amount is reportable as a sale of a fractional share of Dominion stock.

Contact Mellon Investor Services at 1-888-294-4106 and let them know your certificate is lost. Also, provide them with your name, address, and the social security number on your account. An affidavit will be mailed to you that you will need to sign and have notarized in order to get your shares exchanged for cash.

The top-up amount should not be considered separately for tax purposes. You should consider the total cash received (cash in exchange for CNG stock and cash top-up) when preparing your tax forms.