Wyoming Natural Gas Pipeline Authority Public Utilities Commission

Wyoming Natural Gas Pipeline Authority Public Utilities Commission of the State of California March 23, 2004 1

Where is Production Growing ………………. . ……………And Where is it Not Growing

Growth In Production - Wyoming Production From Major Plants and Fields (Sales) Production is stated in MMCFD and is average daily production for a particular year. Blacks Echo Lost Powder Cabin Pavillion River Basin 35 82 Opal Granger Fork Springs 1998 545 172 89 303 1999 582 156 98 279 55 47 156 2000 645 139 127 295 78 50 403 2001 713 148 125 323 84 56 673 2002 839 189 89 346 91 68 848 Oct ’ 03 Average 1078 255 98 344 121 45 952 5

Jonah Field (En. Cana Interest Only) Unrestricted Development – If we don’t keep drilling production will decline as illustrated in red below 6

Growth In Production – Colorado (Garfield County) • • 1999 2000 2001 2002 March ’ 03 Oct ’ 03 Going to? 154, 000 Mcfd 190, 000 Mcfd 241, 000 Mcfd 315, 000 Mcfd 365, 000 Mcfd 423, 000 Mcfd 1 Bcfd + Major Operators include: En. Cana, Williams, Calpine, Mesa, Tom Brown, Exxon/Mobil Data Source: Colorado Oil and Gas Conservation Commission 7

Producer Critical Success Factors • • Access to Federal Lands Gas Price Timing of Regulatory Approvals Gathering System Capacities and Pressures Transportation Export Capacity Capital Efficiency Public Acceptance 8

Lack of Access to Federal Lands 9

Nymex vs Wyoming Prices - 2002 10

Nymex vs Wyoming Prices - 2003 11

Pipeline Projects In-service or Full Market Support • • • Kern River Pipeline Expansion Williston Basin Grasslands Pipeline Northwest Pipeline Expansion El Paso Cheyenne Plains Pipeline Trans. Colorado 12

Northwest PL Expansion online Nov ‘ 03 WBI Grasslands online Nov ‘ 03 Proposed El Paso Cheyenne Plains and Kinder Advantage Kern Expansion online May ‘ 03 En. Cana Proposed Piceance to Cheyenne lateral Trans. Colorado Expansion 13

Pipeline Export Projects Proposed • • • Kinder Morgan Advantage Northern Border Bison Project Enbridge Chicago Project Southern Star Western Frontier Project El Paso Ruby Project Kinder Morgan Trans. Colorado Expansion. 14

Intraregional Projects • • Questar Kern Expansion El Paso Front Range Expansions Xcel Front Range Projects Kinder Huntsman Storage Project Totem Gas Storage Project Questar Gas Storage Project Wyoming Interstate/Overthrust Backhaul Projects Jonah/Opal/Powder/Wind River Gathering/Processing Expansions • En. Cana NW Colorado to Cheyenne Project 15

Teppco Jonah Gas Gathering System Expansions Since 2001 Acquisition: • Phase I: 9000 HP 50 miles of 20” • Phase II: 9000 HP 40 miles of 20”/24” • Phase III: 3000 HP 90 miles of 20”/24” 250 MMcf/d Plant 2001 Capacity: 450 MMcf/d 2004 Capacity: 1180 MMcf/d Current Volume: 925 MMcf/d 16

Cost of Limited Infrastructure to Wyoming • $130 + million in Federal/State royalties and severance taxes – 2002. • $1 million per day in March 2003. • Stalled investment in development of mineral resources. • Limited ability to predict revenues with certainty. 17

$1 Billion in Bonding Authority 18

Our Team of Finance Professionals • • Goldman Sachs – Jeff Brown Merrill Lynch – Ed Burdett and Greg Dawley George K. Baum – Mary Keating-Scott and Geoff Urbina Kutak Rock – John Wagner 19

The Wyoming Pipeline Authority Will • Promote all industry sponsored and supported projects. • Proactively promote infrastructure development within the state and the Rocky Mountain Region. • Promote efficient utilization of existing infrastructure in a cost effective manner. • Promote development of Wyoming’s mineral resource base in a systematic, streamlined and environmentally responsible manner. • Utilize its bonding authority to build or cause to be built infrastructure projects that will enhance state netbacks and promote development of a resource base that is in the nation’s best interests. 20

Thanks for the opportunity to speak with you. Bryan Hassler Interim Executive Director - Wyoming Natural Gas Pipeline Authority Ph 303 -357 -7314 Cell 303 -748 -6473 Fax 303 -948 -1428 Email uep 1@comcast. net Wyoming Pipeline Authority Presentations Can be Accessed via the Wyoming Oil & Gas Conservation Commission Website at: www. wogcc. state. wy. us 21