Energy Supply Opportunities: the Economic Advantage for Northeast Wyoming Campbell County Economic Development Corporation, Wednesday, May 11 th, 2005, Gillette, WY Presented by Marc Strahn, Board Member of the Wyoming Natural Gas Pipeline Authority

The Wyoming Pipeline Authority Energy DEMAND - its not a science fiction movie PRB Resources THINK OUTSIDE THE BOX Planning for the future – areas where you can influence the outcome

Bryan Hassler -- Executive Director Carla Hubbard – Administrator Gregg Detweiller – Technical Analyst Colby Drechsel – Technical Analyst Board Members Board Members: Mark Doelger - Chairman Marc Randal Strahn - Vice Chairman Duane Zavadil - Board Member Jim Nielson - Board Member Jim Peck - Board Member Kern River smart pig launching station adjacent to the Opal Processing Station

Cheyenne Plains

Natural Gas Production, Consumption, and Imports, (trillion cubic feet) Consumption Production Net Imports HistoryProjections Natural Gas Net Imports, 2002 and 2025 (trillion cubic feet)

PRB resources Coal – approx. 1,021,000 short tons per day (WY #1 producer in the Nation or approximately 35% total U.S. production – runner up was W.V. at 13%) Campbell, Converse, and Sheridan Counties yield 96% of the coal mined in the State of Wyoming CBM derived natural gas – approx. 850,000 Mcfd (18% of the total natural gas produced in the State of Wyoming) Oil – 36,080 BOPD Uranium – 1.2 million pounds/y yellowcake CO2 – power plants????? On a national level,

Natural gas related developments for northeast WY Continued CBM development Northern Border Partners, L.P. Bison Pipeline Project: 300 miles of 24-30" pipe from Deadhorse, WY near Gillette, WY to their CS 6 compression station near Hebron, ND to transport 250,000 to 500,000 Mcfd. In service November In the planning stages depending on Powder River Basin production. Questars Wamsutter to Gillette, WY tying into Bison Pipeline Project terminus. 245 miles of 24-30" pipe providing up to 500,000 Mcfd capacity. In service mid to late 2007.

Outside of the box? Coal-fired power plants utilize only 1/3 of the energy produced from burning coal; conversely, coal gasification can raise this amount to nearly 50%. Coal gasification can generate saleable hydrogen and simplifies and lowers the cost of carbon dioxide capture - used for tertiary oil recovery methods Developing and exporting raw hydrogen and/or hydrogen fuel cell technology GM has already spent $1 billion on developing hydrogen fuel cells and has made statements that if a car were built in high volume, they could have a cost competitive vehicle by Rolls Royce announced it will invest $75 million to develop a hydrogen fuel cell replacement for gas and diesel generators. The number of companies investing in hydrogen fuel cell technology continues to increase.

contd Coal liquefaction – theoretically, FTD netback at $40/Bbl. (20% return on investment) with the following parameters: export 10,200 BOPD, 104 MW power, consuming 7650 tons per day of coal and 240 gpm water. CAPEX of $740 million, OPEX w/out coal $48 million/y, 182 fulltime employees, 1500 employees during peak construction over a 2 year time frame (RENTECH, April 15, 2005) Support the incentives that will promote new technology higher education institutions training facilities Examples – McMurray Training Center Your competitors – LNG, Canada, Alaska

WPA Services Energy related data research and interpretation Infrastructure consulting Policy/planning development Government/Public Affairs services Technical support Annual subscription or by special project

VISIT US! THE WYOMING NATURAL GAS PIPELINE AUTHORITY

Bryan Hassler - Executive Director – Office (303) Fax (303) Carla Hubbard – Administrator – 152 N. Durbin Street – Suite 230 Casper, Wyoming Office (307)