Opal Rockies Express Pipeline Wamsutter Cheyenne Meeker Tuscola

Opal “Rockies Express Pipeline” Wamsutter Cheyenne Meeker Tuscola Clarington Lebanon

Market Assessment • Production of Rockies gas is expected to increase • There is insufficient pipeline capacity to export this increasing supply • Potential expansion projects for existing pipelines would deliver gas to low-price markets in the Southwest or Mid-Continent • Increased LNG deliveries to the West Coast and Gulf Coast will compete with the Rockies • The highest premium-priced market for gas is the Northeast • Large basis differentials exist between the Rockies and the East Coast • Producers seek the highest netback and greatest optionality on where to deliver gas 2

Reserve Base Supports New Infrastructure Huntsman 3

To support Rockies production, additional pipeline capacity must be built Total Exports 4. 9 Bcfd 4

Basis Spreads Support New Pipeline • Basis differential versus Henry Hub • Source: Historical Prices – Gas. Dat, Forward Prices – Sempra Commodities Oct 05 Curve 5

Project Overview • Construction of 42 inch or larger, 1350 mile pipeline from Cheyenne Hub to Clarington, Ohio with 2 Bcfd transport capacity • Purchase Entrega Pipeline - 330 miles of 36 and 42 inch from Meeker to Wamsutter to Cheyenne. • 180 miles of 36 inch pipeline from Opal to Wamsutter • Over 20 interconnections with interstate pipelines and multiple supply points • Staged FERC Certificates will enable access to mid-continent delivery points in Dec. 2007; access to Tuscola or Lebanon delivery points in Dec. 2008 and access to eastern Ohio, delivery points in July 2009 • Final design based on Open Season binding bids • Expected rates of about $1 plus fuel of about 2% to 3% 6

Development Status • Route follows over 90% of existing pipeline or utility ROW corridors • Detailed engineering, environmental, and ROW studies due Nov. 15 th • Proposing 3 certificate FERC filing process and construction schedule to maintain 4 Q 07 in-service date to mid-continent – Certificate I route follows Kinder´s Trailblazer and Terasen’s Platte Valley pipelines – Existing Trailblazer and Platte ROW and project records help accelerate permitting • Discussions with FERC yielded positive feedback on staged development • Project is in to hold Open Season later in Q 405 7

Rockies Express Pipeline Proposed Route

Significant Developments • Kinder & Sempra Joint Development – Kinder 2/3 equity and Sempra 1/3 equity – Sempra Affiliate committing to 200, 000 Dth/d • En. Cana & Entrega Support – 500, 000 Dth/d of firm long haul commitment – Incorporation of Entrega into the project • Wyoming Natural Gas Pipeline Authority Negotiations • Exclusivity Agreements with End-Use Markets 9

WNGPA • Provides for 90 period of exclusive negotiations • Subjects of negotiations include: – WNGPA providing competitive financing for Rockies Express – WNGPA facilitating extension of Project to Opal Hub – A conditional capacity commitment of up to 200 mmcfd under the proposed Aggregation Services – Potential interim financing through 2008 or beyond for the Project’s acquisition and/or construction of assets upstream of Cheyenne • Any transportation commitment will be subject to Board approval by January 31, 2006 10

Aggregation Services • Would allow for the WNGPA to serve as Aggregator: – Gas-in-kind – Small producers • WNGPA would not need to hold title to gas • “Pool Members” could change over time • Relationship of Aggregator and Pool Members is a private contractual relationship (not subject to FERC review or jurisdiction) • Provide credit assurances for Pool Members 11

Next Steps • Negotiate and execute shipper precedent agreements • Start NEPA Pre-filing in late October, 2005 • Conduct binding open season in Nov. – Dec, 2005 - Long haul bids coordinated with completion of construction phases are conforming • Shipper Board approval required by Jan. 31, 2006 • A minimum of 1, 500, 000 Dth/d is needed • Determine economic viability by February, 2006 12

Contact Information • Kinder Morgan Jeff Rawls Vice President Business Development West Region Gas Pipelines 303 -914 -4903 jeff_rawls@kindermorgan. com • Sempra Pipelines & Storage Ryan O’Neal Vice President 619 -696 -4585 roneal@Sempra. Pipelines. com 13