<DOCUMENT>
<TYPE>EX-99.B
<SEQUENCE>3
<FILENAME>y51860ex99-b.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>

<PAGE>   1
                                                                  Exhibit 99(b)



                          Seneca Resources Corporation
                     Announces Third Quarter Record Production


(July 25, 2001) Buffalo, New York: Seneca Resources Corporation ("Seneca"), the
exploration and production subsidiary of National Fuel Gas Company ("National
Fuel") (NYSE: NFG), today announced record results for its quarter which ended
June 30, 2001, which is the third quarter of fiscal year 2001.

     Third quarter total revenue was $105.8 million and net income was $19.9
million for a contribution of $0.50 per basic share to National Fuel's third
quarter earnings. Compared to the third quarter of fiscal 2000, total revenues
increased by $52.4 million, or 98%, and net income increased by $13.9 million,
or 230%. Increased production and higher commodity prices for natural gas
contributed significantly to the earnings increase. Average oil prices (before
hedging) decreased 6.2% to $24.43 per barrel (BBL) while average natural gas
prices (before hedging) rose 60% to $5.63 per thousand cubic feet (MCF) compared
to the prior year's third quarter.

     Production for the quarter increased 19% from last year's third quarter to
a record 21.9 billion cubic feet equivalent (BCFE). Production increases over
the third quarter of last year were recorded from Seneca's operations in Canada,
while production from its properties in California and the Gulf remained nearly
flat. Seneca maintained a limited steaming operation in California in the
Midway-Sunset Field and anticipates that with the current downward trend in
natural gas prices, full steaming operation will resume by October 1, 2001.*

     In the Gulf of Mexico, Eugene Island 271, Seneca's #1 Well was drilled to a
total depth of 10,304 feet and encountered 72 feet of net pay sand. Seneca owns
a 100% working interest in this well and it is expected to be on production by
mid-November 2001.*

     Hedging expense for the quarter was $11.4 million, a decrease of $10.2
million from the third quarter of fiscal 2000. Pre-tax hedging income of $3.9
million was recorded for the quarter, which represents Seneca's mark-to-market
exposure for the total value of no cost collars and puts. Beginning July 1,
2001, the quarterly mark-to-market adjustments for the time value of the no-cost
collars and the quarterly mark-to-market adjustments for the purchased puts,
which meet effectiveness criteria, will be recorded in the Comprehensive Income
Statement until settled.


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SENECA RESOURCES THIRD QUARTER EARNINGS FY 01
JULY 25, 2001
PAGE 2.


     Seneca's exploration and development drilling programs posted solid results
this quarter. A total of 46 gross wells were drilled this quarter, 35 in the
U.S. and 11 in Canada, with a 98% success rate. For the first nine months of
fiscal 2001, Seneca drilled a total of 168 wells with a 91% success rate.
Additionally, the Minerals Management Service has awarded Seneca seven blocks
from the Federal Lease Sale 178 held on March 28, 2001.

     Seneca's Canadian subsidiary, National Fuel Exploration Corp. ("NFE"),
drilled a total of 11 wells in the quarter with a 100% success rate. It is
expected that the acquisition in June 2001 of Player Petroleum Corporation
("Player") will increase the number of wells drilled in Canada this year.*
During the first nine months of Fiscal 2001, NFE drilled a total of 57 wells and
expects to drill an additional 37 wells in the fourth quarter of 2001, 15 of
which are related to the Player acquisition.*

     Seneca's production for the fourth quarter of fiscal 2001 is forecast to
show a significant increase over last year's fourth quarter.* The closing of the
previously announced Player acquisition in Canada, the ramping up of steaming
operations in California, and improving production from our East and Gulf
divisions should enable Seneca to reach a production total for Fiscal 2001 of 88
BCFE.*

     The outlook for fiscal 2002 is for continued growth in production, which
will represent Seneca's seventh straight year of production increases.* The
forecast for fiscal 2002 is to produce about 100 BCFE with oil representing 51%
of this production.* Production for 2002 has already been hedged, with 63% of
the expected gas production hedged at an average price of $3.86 per MCF and 72%
of the expected oil production hedged at an average price of $22.75 per BBL. A
detailed hedging summary can be found at the end of this press release and on
Seneca's Web site at www.srcx.com. Seneca's anticipated capital budget for
Fiscal 2002 is $162 million and includes plans to drill approximately 275 new
wells with activity focused in California, Canada and Pennsylvania.* A total of
264 wells of these 275 new wells will be drilled in these regions.*

     In addition to continued growth, the outlook for 2002 includes cost savings
which are expected to positively impact earnings.* Seneca's expenses per
thousand cubic feet equivalent (MCFE) for fiscal 2002 are expected to be
reduced.* The benefits of the Player acquisition and lower production

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<PAGE>   3


SENECA RESOURCES THIRD QUARTER EARNINGS FY 01
JULY 25, 2001
PAGE 3.

taxes will improve projected earnings at current prices.* Seneca will continue
to emphasize cost reductions for General and Administrative expense; Lease
Operating Expense should gradually decrease as natural gas prices drop; and
Depreciation, Depletion and Amortization is expected to be $1.02 per MCFE which
compares to $1.10 per MCFE for the third quarter of Fiscal 2001.

     Seneca Resources Corporation is the exploration and production subsidiary
of National Fuel Gas Company. National Fuel Gas Company is an integrated energy
company with $3.6 billion in assets comprised of the following six operating
segments: Utility, Pipeline and Storage, Exploration and Production,
International, Energy Marketing and Timber. Seneca Resources Corporation,
headquartered in Houston, Texas, explores for and produces natural gas and oil
in the lower 48 States, the Gulf of Mexico and, through its subsidiary National
Fuel Exploration Corp., in Canada. Additional information about National Fuel
and Seneca Resources is available at http://www.nationalfuelgas.com or through
its investor information service at 1-800-334-2188; information about Seneca
Resources is also available directly at http://www.srcx.com.


*Certain statements contained herein, including those which are designated with
an "*", are "forward-looking statements" as defined by the Private Securities
Litigation Reform Act of 1995 and involve risks and uncertainties which could
cause actual results or outcomes to differ materially from those expressed in
the forward-looking statements. The expectations, beliefs and projections
contained herein are expressed in good faith and are believed to have a
reasonable basis, but there can be no assurance that such expectations, beliefs
or projections will result or be achieved or accomplished. In addition to other
factors, the following are important factors that could cause actual results to
differ materially from those discussed in the forward-looking statements:
changes in economic conditions or weather conditions; changes in the
availability or price of natural gas and oil; significant changes in competitive
conditions affecting the company; governmental/regulatory actions, initiatives
and proceedings, including those affecting acquisitions, financings, allowed
rates of return, industry and rate structure, franchise renewal, and
environmental/safety requirements; significant changes from expectations in
actual capital expenditures and operating expenses and unanticipated project
delays or changes in project costs; the nature and projected profitability of
pending and potential projects and other investments; occurrences affecting the
company's ability to obtain funds from operations, debt or equity to finance
needed capital expenditures and other investments; uncertainty of oil and gas
reserve estimates; ability to successfully identify and finance oil and gas
property acquisitions and ability to operate existing and any subsequently
acquired business or properties; ability to successfully identify, drill for and
produce economically viable natural gas and oil reserves; significant changes
from expectations in the company's actual production levels for natural gas or
oil; changes in the availability or price of derivative financial instruments;
changes in the price of natural gas or oil and the related effect given the
accounting treatment or valuation of these financial instruments; inability of
the various counterparties to meet their obligations with respect to the
company's financial instruments; regarding foreign operations - changes in
foreign trade and monetary policies, laws, and regulations related to foreign
operations, political and governmental changes, inflation and exchange rates,
taxes and operating conditions; significant changes in tax rates or policies or
in rates of inflation or interest; significant changes in the company's
relationship with its employees and contractors and the potential adverse
effects if labor disputes or grievances were to occur; or changes in accounting
principles or the application of such principles to the company. The company
disclaims any obligation to update any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

Media Contact:    Julie Coppola Cox (716) 857-7079

Analyst Contact:  Margaret Suto (716) 857-6987

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SENECA RESOURCES THIRD QUARTER EARNINGS FY 01
JULY 25, 2001
PAGE 4.


<TABLE>
<CAPTION>
                                          3RD QUARTER RESULTS              YEAR TO DATE RESULTS
                                          -------------------              --------------------
                                        2001     2000    INCREASE/     2001        2000    INCREASE/
                                                        (DECREASE)                        (DECREASE)
<S>                                    <C>       <C>    <C>           <C>          <C>     <C>
Financial Results
(IN MILLIONS OF DOLLARS)
  Revenue                              $105.8    $53.4      98%       $305.5       $153.8      99%
  Operating Expenses                    $61.1    $34.4      78%       $170.3        $94.5      80%
  EBITDA                                $68.6    $36.0      91%       $202.1       $107.4      88%
  Operating Income (before
     income taxes)                      $44.6    $19.0     134%       $135.3        $59.3     128%
  Net Income                            $19.9     $6.0     230%        $59.5        $21.9     171%

Operating Performance Statistics

  Production (BCFE)                      21.9     18.3      19%         62.6         51.1      22%

Operating Performance

  General & Administrative
  Expense/MCFe                           $0.25    $0.20     25%         $0.26        $0.17     53%
  Lease Operating
   Expense/MCFe                          $0.77    $0.52     48%         $0.74        $0.51     45%
  Depreciation, Depletion
     & Amortization/MCFe                 $1.10    $0.92     20%         $1.07        $0.94     14%

Commodity Prices (Before Hedging)

Avg.  Oil Price/barrel                  $24.43   $26.06     (6%)       $25.72       $24.30      6%
Avg.  Gas Price/MCF                      $5.63    $3.52     60%         $6.54        $2.94    122%

Commodity Prices (After Hedging)

Avg.  Oil Price/barrel                  $21.15   $23.52    (10%)       $21.63       $20.22      7%
Avg.  Gas Price/MCF                      $4.75    $2.57     85%         $4.60        $2.65     74%


</TABLE>



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<PAGE>   5




SENECA RESOURCES THIRD QUARTER EARNINGS FY 01
JULY 25, 2001
PAGE 5.







Hedging Summary for Fiscal 2001 (remaining three months)

<TABLE>
<CAPTION>
SWAPs               Volume            Average Hedge Price
-----               ------            -------------------
<S>                 <C>               <C>
Oil                 0.95 MMBBL        $20.99/BBL
Gas                 6.9 BCF           $3.56/MCF
</TABLE>

<TABLE>
<CAPTION>
No-cost Collars     Volume            Floor Price    Ceiling Price
---------------     ------            -----------    -------------
<S>                 <C>               <C>            <C>
Oil                 0.51 MMBBL        $22.26         $29.22
Gas                 1.4 BCF           $3.98          $5.57
</TABLE>

Hedging Summary for Fiscal 2002

<TABLE>
<CAPTION>
SWAPs               Volume            Average Hedge Price
-----               ------            -------------------
<S>                 <C>               <C>
Oil                 4.8 MMBBL         $22.98/BBL
Gas                 26.4 BCF          $3.82/MCF
</TABLE>

<TABLE>
<CAPTION>
PUTS                Volume            Average Hedge Price
----                ------            -------------------
<S>                 <C>               <C>
Oil                    -                   -
Gas                 2.5 BCF           $4.12/MCF
</TABLE>

<TABLE>
<CAPTION>
No-cost Collars     Volume            Floor Price    Ceiling Price
---------------     ------            -----------    -------------
<S>                 <C>               <C>            <C>
Oil                 1.3 MMBBL         $21.91         $28.26
Gas                 2.8 BCF           $4.11          $5.61
</TABLE>








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