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

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

5 Growth In Production - Wyoming Wyoming Production From Major Plants and Fields (Sales) Production is stated in MMCFD and is average daily production for a particular year. BlacksEchoLostPowder OpalGrangerForkSpringsCabinPavillion River Basin Oct 03 Average

6 Jonah Field ( EnCana Interest Only ) Unrestricted Development – If we dont keep drilling production will decline as illustrated in red below

7 Growth In Production – Colorado (Garfield County) ,000 Mcfd ,000 Mcfd ,000 Mcfd ,000 Mcfd March 03365,000 Mcfd Oct 03423,000 Mcfd Going to?1 Bcfd + Major Operators include: EnCana, Williams, Calpine, Mesa, Tom Brown, Exxon/Mobil Data Source: Colorado Oil and Gas Conservation Commission

8 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

9 Lack of Access to Federal Lands

10 Nymex vs Wyoming Prices

11 Nymex vs Wyoming Prices

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

13 Kern Expansion online May 03 WBI Grasslands online Nov 03 Northwest PL Expansion online Nov 03 Proposed El Paso Cheyenne Plains and Kinder Advantage EnCana Proposed Piceance to Cheyenne lateral TransColorado Expansion

14 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 TransColorado Expansion.

15 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 EnCana NW Colorado to Cheyenne Project

16 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/ MMcf/d Plant 2001 Capacity: 450 MMcf/d 2004 Capacity:1180 MMcf/d Current Volume: 925 MMcf/d Teppco Jonah Gas Gathering System

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

18 $1 Billion in Bonding Authority

19 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

20 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 Wyomings 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 nations best interests.

21 Thanks for the opportunity to speak with you. Bryan Hassler Interim Executive Director - Wyoming Natural Gas Pipeline Authority Ph Cell Fax Wyoming Pipeline Authority Presentations Can be Accessed via the Wyoming Oil & Gas Conservation Commission Website at: