The Bison Pipeline Project Open Season planned for
The Bison Pipeline Project • Open Season planned for 2 nd Quarter of 2004 • Proposed Interconnects -Deadhorse (Bighorn, Fort Union) -MIGC, Thunder Creek • Deliveries into Northern Border at CS 6 • MAOP @ 1435 lbs • 275 to 300 Pipeline Miles • Negotiated Rate: 25 cents • Recourse Rate: 29 cents • In-Service – November, 2006 Northern Border Big Horn Bear Paw Bison Fort Union NBPL Compressor Stations 2
Powder River Basin Outlook • We believe the PRB can reach sustainable production levels of 1. 5 to 2. 0 Bcfd assuming normalized netbacks and annual connected new wells in the 2, 000 range • Bison can meet near and long-term needs of the Powder River Basin - Less than 2 Bcfd, a 24” Bison system is required - Greater than 2 Bcfd, a 30” Bison system is required 3
Netbacks to Powder River Basin From Market Centers Cheyenne NBPL/Ventura ANR/Greensburg NGPL/Greensburg NBPL/Chicago Adv/Chicago $4. 00 $4. 67 o . G ag vs ic t. $4. 76 $4. 60 $4. 68 Ch Ve n $5. 00 Ch ey en ne re en s January 2004 $4. 80 $4. 47 $3. 00 $2. 00 $1. 00 $0. 00 4
Bison Project Overview Strategic Advantages for Wyoming PRB • Provide an economical rational netback by building an interstate pipeline to the heart of the Basin • Provides the best netback versus alternate projects and existing outlets • Leverages Northern Border markets that are highly correlated to NYMEX • Leverages Northern Border existing infrastructure of available capacity and the optionality of economic expandability • Northeastern route provides market & pricing diversification to southern routes and balances the PRB pipeline grid • Minimal impact on market prices due to displacement 5
Summary • PRB has not met expectations § Federal Permitting Process § Regulatory Uncertainty • Still Bullish on the Powder § 39 Tcf technically recoverable § Est. 39, 000 more wells to be drilled • We believe the PRB can reach sustainable production levels of 1. 5 to 2. 0 Bcfd • Open Season is planned in the 2 nd Quarter in 2004 6
Bison Contacts • • Dick Shepherd 402 -492 -7431 richard. shepherd@nborder. com 7
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