CO 2 Capture & EOR Potential For: Wyoming Pipeline Authority July 25, 2006 By: PLASMA, Inc. Rich Schuller PLASMA, Inc. 58 West Quartz Butte, MT

Presentation PLASMA CO 2 Capture Technology ready for Commercial Application: Ultra High Sulfur & Nitrogen recovery from solid sulfurous fuels – Air Fired Emissive Plant. Captures high quality CO 2 from existing power plant and new power plants – Non-Emissive or No GHG. California Governator & Legislature proposing CO 2 reduction. BP announces IGCC to make a H 2 -fired Cogen and CO 2 sequestration. PLASMA has formed a Consortium proposing a CO 2 Capture Retrofit Project for a Power Station & near-by Sequestration for Enhanced Oil Recovery (EOR) for SoCal. Giant CO 2 Geological Sequestration potential in Northern Rocky Mountains (Wyoming, Colorado & Montana). Wyoming CO 2 Capture & Sequestration Potential. London CO 2 Carbon Credit trading exchanges. Conclusion

PLASMA Emissive Technology Superior Sulfur Removal superior any other 99.9% sulfur removal. High NOx removal 70 to 85%. Emissions equal or lower than coal Gasification. Emissions equal or lower than gas fired GTCC. Sulfur & NOx removal has over 5,000 hours of operating experience at 25 & 50 MWt scale. Oxy-firing operating experience at 40 to 50% O 2 for over 5,000 hours. Significant part of PLASMAs CO 2 Capture Technology or Zero Emission (no GHG).

Coal/Coke,S,N 2 + O 2 /CO 2 + K 2 CO 3 CO 2 + H 2 0 +K 2 SO 4 +KNO 3 Coal Fuel + K 2 CO 2 Recycle CO 2 Captured No Stack gas Steam to EOR Steam to Power > 98% O 2 Solids(K 2 SO 4 & KNO 3 & Ash) PC Boiler H2OH2O Non-Emissive CO 2 Capture Technology Reactions Captured CO 2 – ultra low SOx <10 ppm & very low NOx

Geological CO 2 Sequestration with an Economic Incentive Enhance Oil Recovery (EOR): Permian Basin commercial operation. Wyoming & Colorado commercial operation. Weyburn Saskatchewan commercial operation. US DOE said Huge EOR Potential in 10 oil Basins in USA with 89 billion barrels increase in reserves. Wyoming huge EOR Potential. Coal Bed Methane (CBM) the only field Burlington Resources in San Basin Basin: CO 2 enhances Methane production – 3 volumes CO 2 produces 1 volume methane. N 2 enhances Methane production – 4 volumes N 2 produces 1 volume methane. Wyoming huge Enhanced CBM potential (has any field work been completed, since last year?)

In April 06 the California Governator proposed and Legislature began the development of a legislative package to limit and control the CO 2 emissions in the State. They are proposing a Cap and Trade and the proposed cap levels for power generation is shown in the Table below: California Proposing to Limit CO 2 Emissions CAPUC & CACEC Sources :

DOE CO 2 EOR Study for SoCal Major Oil Basins & Potential Power Plants for CO 2 Capture DOE states the fields needing The largest CO 2 volumes are: OXYs Elk Hills Coalinga AERAs Ventura Ave Field San Miguelito San Fe Springs Dominquez California needs at least 4.5Bcf/Day of CO 2 for EOR shown above. 65% of CO 2 is needed in between Ventura to Santa Maria & Southern SJV. LA Basin has a 35% CO 2 requirement. Morro Bay Idle PG&E Kern Plant Mandalay Ormand Breach BP Carson IGCC Alamitos Huntington Beach CO 2 Pipelines

California Oil Companies are moving on CO 2 Capture & CO 2 Sequestration BP announces in February 2006 that is plans to spend a $1 billion to make H 2 and Capture CO 2 from coke gasification at their Carson refinery. BP will build a Integrated Gasifier Combined Cycle (IGCC) producing electric power. ~300 MMscf/d H 2 will be made and combusted in gas turbine combined cycle ~500 MWe gross power. CO 2 is recovered from water-shift reactor. 4 million tonnes CO 2 will be captured and sequestered at a 90% recovery rate from coke. Occidental Petroleum is conducting CO 2 sequestration for EOR study for BP. PLASMA formed a consortium with two Major Oil Companies and currently has not made a public announcement of CO 2 Capture Retrofit Project and expected to be announced soon.

O 2 ASU Partial Oxidation Gasifier 800 to 1200 psig H 2 S Amine Unit Claus & Tail gas Unit Steam Gen & Duct-firing Water Shift Reactor Gas Turbine/ Generator Steam Turbine/ Generator Sulfur (S) Capture CO 2 IGCC Block Flow Power Ash Air Coke Acid Syn-gas H 2 S, CO & H 2 H2SH2S CO & H 2 Syn-gas Air Flue Gas H 2 O & N 2 PLASMA Technology Block Flow O 2 ASU Radiant Section & Boiler 15 psig Baghouse or ESP Steam Turbine/ Generator Power Coal or Coke Air Steam K 2 SO 4 & Ash Capture CO 2 Nitrogen (N 2 ) Oxygen CO 2 Recycle Steam Flue Gas CO 2 & K 2 SO 4 K 2 CO 3 Existing Equipment Like in Mandalay Retrofit New Equipment CO 2 Hydrogen (H 2 ) CO 2 (90%) Power Steam Water Hydrogen (H 2 ) O 2 Compressor CO 2 10% Where is It?? Comparison of Two CO 2 Capture Technologies

Target Generation Station – SoCal Initially Unit #1 CO 2 Capture Retrofit CO 2 Capture/Day : Unit # MMcf/d Unit # MMcf/d including MHD CO 2 Capture/Yr: Unit #1 – 1.6 MM mt/y Unit #2 – 2.0 MM mt/y Total MM mt/y

PLASMAs CO 2 Capture Retrofit Project Progress PLASMA has formed a CO 2 Capture Project Consortium with 2 Major Oil Companies. MOUs for both Power Output & Captured CO 2. CO 2 will be compressed to liquid and supplied via new pipeline to oil production fields. Have secured a Major Bank as project advisor. Starting Lease with Purchase option discussions with current owner. Strong support from CA Energy Commission (CEC). Will inspect and run performance tests at the target plant in August/September.

665, ,6555,580Totals for CA CO 2 Capture Potential 179, ,500Reliant–Ormand Beach– 54, Reliant–Mandalay 118, ,000LS Power-MorroBay 97, AES-Huntington Beach– 217, ,830 AES–Alamitos Potential (*) New EOR Oil Bbls/D Gas Credit Not Used Bcf/Yr CO 2 Captured MM T/Yr CO 2 Captured MMscf/D MWsTarget Power Generation Station 665, ,6555,580Totals for CA CO 2 Capture Potential 179, ,500Reliant–Ormand Beach– 54, Reliant–Mandalay 118, ,000LS Power-MorroBay 97, AES-Huntington Beach– 217, ,830 AES–Alamitos Potential (*) New EOR Oil Bbls/D Gas Credit Not Used Bcf/Yr CO 2 Captured MM T/Yr CO 2 Captured MMscf/D MWsTarget Power Generation Station SoCal CO 2 Capture from Existing Power Generation Stations Assumes: 4,000 cf CO 2 /Bbl oil recovery

Cedar Creek Anticline EOR Potential Anadarko CO 2 Pipeline CO 2 Source Gas Cleanup Off-gas Source: Dag Nummendal

DOE 10 Basin Study CO 2 for EOR – Feb. 06 Study conducted by Advanced Resources International – Houston, TX

Summary of DOEs CO 2 EOR Study USA Total – Feb 06 Basin/Region CO 2 EOR Technically Recoverable Potential for 10 Regions Technically Recoverable (Billion Bbls) CO 2 (*) Needed MM scf/D CO 2 (*) Captured MM tonnes/Yr Power (*) Capacity MWs California5.22, ,060 Alaska12.46, ,080 Mid-Continent11.85, ,500 Illinois & Michigan ,460 Louisiana Offshore5.92, ,750 Permian Basin (**)20.810, ,260 Rocky Mountains (WY included) 4.22, ,090 Texas: Central & East17.38, ,850 US Gulf Coast (Texas)6.93, ,720 Williston Basin2.71, ,630 Total 10 Regions88.743, ,400 Notes: (*) PLASMA calculated 4,000 cf/Bbl CO 2 & respective power plant capacities. (**) Permian current CO 2 is from natural geological sources.

How much oil can be produced from CO 2 ?? DOE says at least 89 billion barrels of increased reserves up to as much 430 billion Bbls. Assuming CO 2 Capture happens instantly – assuming a 25 year recovery rate on 89 billion Bbl then the new additional daily production would be 10.8 million Bbls/Day. For a 30 year recovery rate would be then be 9 million Bbls/Day. USA currently imports about 9 million Bbls/Day. Now this is Real ENERGY INDEPENDENCE !! Furthermore, it reduces the CO 2 GHG emissions, as it has been linked to global warming.

First 16 months of London PointCarbon Exchange Price Data 1 st Year Reality adjustment

Suggestions for Wyoming Last year and repeated again today! Unitization of fields would simplify the credit issue for those who sign up for CO 2 to be used for EOR. Finance like a Limited Improvement District. Where every one does not have to sign up at once, but there is a rebate to the early signors for others capital costs paid by early signors. Do CO 2 field pilot floods studies for Coal Bed Methane for major coal basins with CBM potential. Do N 2 field pilot flood studies for pressure displacement of normal natural fields and CBM coal structures. Extend WY Pipeline Authority to Williston Basin in Montana & North Dakota. (New) Why propose IGCC for CO 2 Capture Technology for WY Infrastructure Authority RFP? Feds have similar funds available for other technologies!

Conclusion Message to Wyomings favored son VP Dick - Time to reduce CO 2 Emissions… to produce more domestic oil Message to Al Gore – We got the message… It is time to reduce CO 2 emissions CO 2 Capture & Geological Sequestration has substantial economic value while reducing greenhouse gas (GHG). Good for Wyoming & USA!!