Totem Gas Storage Project Wyoming Pipeline Authority March

Totem Gas Storage Project Wyoming Pipeline Authority March 23, 2004

Highlights l l l Located 36 Miles NE of Downtown Denver 9 Bcf of Working Gas 135 Mmcfd Injection Capacity 250 Mmcfd Withdrawal Capacity CIG Interconnect Signed Additional Interconnects Anticipated l l Public Service Company of Colorado (Xcel) Cheyenne Plains Pipeline Kinder Morgan’s Advantage Pipeline Southern Star’s Western Frontier Pipeline

Highlights (cont’d) l l High Operating Flexibility One Hour Injection and Withdrawal Turnaround Capability No Seasonal Restrictions on Injection or Withdrawal Inject or Withdraw, or Both, on Any Day of the Year

Permits and Leasing l All Approvals, Certificates and Permits in Place l l l Colorado Oil & Gas Commission Colorado Public Utilities Commission – CPCN Colorado DPHE Air Emission Permits Adams County Conditional Use Permits All Required Leases and ROW’s Have Been Obtained

Reservoir Modeling l Extensive Modeling of the Reservoir Has Been Performed by John Wells of Wells Chappell and Company, Houston l l History Matching & Volumetric Balancing Base and Expected Cases Various Service Profiles High Degree of Confidence in Reservoir Integrity and Performance

Design Performance Profile

Engineering & Cost l l Detailed Engineering Design and Cost Estimate Performed in Fall, 2001 and Updated in 2002 Estimated Facility Cost Inclusive of Base Gas is $57. 3 million Base Gas Assumption – 4. 5 bcf @ $4. 00 Any Base Gas Savings Will Be Passed Along to Customers

Timetable l l l All of the Pre-Development Leg Work is Complete 6 -8 Months of Additional Development Activities Followed by 12 Months of Construction Begin Injecting Base Gas in Summer, 2005 Possible Base Gas Injection Still in 2004 Fully Operational For Winter 2005/2006

Services l l l Traditional Seasonal Single-Cycle Hybrid 2. 5 Cycles Per Year HDMC 4 Cycles Per Year

Tentative Rates l l l Traditional Single Cycle l $0. 97 per Dth per Year – Totem Provides Base Gas l $0. 75 per Dth per Year – Shipper Provides Base Gas Hybrid Multi Cycle l $1. 15 per Dth per Year – Totem Provides Base Gas l $0. 83 per Dth per Year – Shipper Provides Base Gas HDMC l $1. 85 per Dth per Year – Totem Provides Base Gas l $1. 33 per Dth per Year – Shipper Provides Base Gas

Open Season l l Binding Open Season Was Concluded in September, 2003 Negotiations Continue With Successful Bidders for 100% of Capacity

For Further Information l J. B. Condill l l (303) 680 -4725 jbcrog@aol. com