EXHIBIT 99.1

                                                                 [WILLIAMS LOGO]

NEWS RELEASE

                             [WILLIAMS LETTERHEAD]



   WILLIAMS CEO SAYS "ROUND-TRIP TRADING DIDN'T ADD A NICKEL TO OUR REVENUES"
           COMPANY WILL PUBLICLY RESPOND TO FERC QUERIES ON WEDNESDAY

           TULSA, Okla. - Williams (NYSE:WMB) today said that its review of
trading activity during the last two years shows that the company did not engage
in a strategy of so-called "round-trip trading" for the purpose of inflating
volumes or revenues. Indeed, because Williams reports its revenue on a net
basis, the less than 1 percent of reported trades it found with "round-trip"
characteristics were not included in its reported revenues.

           "Round-trip trading didn't add a nickel to our revenues," said Steve
Malcolm, chairman, president and CEO. "Even though the number of trades we've
found with these characteristics is extremely small and random, the very nature
of reporting on a net basis means that they are not included in our reported
revenues. It clearly does not reflect an ongoing business strategy."

           Williams is the only major energy marketing company that accounts for
its trading revenues on a net, rather than a gross basis.

           Williams' trading data shows less than 1 percent of its reported
power and gas trading volumes in 2000 and 2001 had any characteristics now
associated with "round-trip trading."





           Williams completed its "round-trip" trading analysis today. The
company is also reviewing its California trading practices in response to a
Federal Energy Regulatory Commission query resulting from a recent Enron
disclosure. The company plans on Wednesday to publicly file its complete
response to FERC's information request.

ABOUT WILLIAMS (NYSE: WMB)

Williams moves, manages and markets a variety of energy products, including
natural gas, liquid hydrocarbons, petroleum and electricity. Our operations span
the energy value chain from wellhead to burner tip. Based in Tulsa, Okla.,
Williams and its 12,000 worldwide employees contributed $45 million in 2001 to
support the environment, health and human services, the arts, and education in
its communities. Williams information is available at www.williams.com.

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Portions of this document may constitute "forward-looking statements" as defined
by federal law. Although the company believes any such statements are based on
reasonable assumptions, there is no assurance that actual outcomes will not be
materially different. Any such statements are made in reliance on the "safe
harbor" protections provided under the Private Securities Reform Act of 1995.
Additional information about issues that could lead to material changes in
performance is contained in the company's annual reports filed with the
Securities and Exchange Commission.