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1. Compressor site on pipeline2. Delivered in composite containers 3. Customer Off-Load Station4. Empty trailers return for refilling How Does It Work

Building in partnership with one of T Boone Pickens’ companies, Clean Energy Fuels

Hexagon Lincoln TITAN trailer ready for delivery by hauling partner, J.P. Noonan

Asphalt plant Operational Q2 2013

NG Advantage’s Customers: Paper Industry

NG Advantage’s Customers: Industrial

NG Advantage’s Customers: Medical

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15 Gov. Peter Shumlin & ex-Gov. Jim Douglas LT. Gov. Phil Scott Lawrence Miller, Sec. of Economic Dev.

 Hospitals  Asphalt Plants  Paper Mills 16

TechnologyLogistics  SCADA tools for knowing ◦ when trailer is full ◦ when to start filling ◦ when to switch over to 2 nd trailer  Telemetry on trucks & compressors  Telemetry to monitor customer site  Video to monitor and help drivers  $5MM per compressor station  $500,000 trailers  Fully filling trailers in heat and cold  Routing trailers so they get to customers “just-in- time”  Fully emptying trailers  Multiple sources of gas  Relationship with trucking firm 17

Expand Your Territory

Pipeline and Gas Journal - March 2014  A 24 inch diameter pipeline extension costs $100, per inch-mile or $2,400, per mile.  “Gas pipeline cost per inch-mile The cost of building natural gas pipeline(1) infrastructure varied between $30,000 and $100,000 per inch- mile(2) from 1993 to 2007 (Figure 8), according to the study. Through 2004, increases in pipeline construction costs were generally modest. After 2004, however, costs began to escalate dramatically, nearly doubling previous levels by This was due, in part, to high world commodity prices, especially the price of steel. Costs have declined recently and the several year cost run-up is expected to only be temporary. Since all three cases have similar GDP assumptions, input costs are assumed to be the same in all cases. Construction costs are projected to decline through After 2010, costs resume a general upward pattern consistent with the pre-2004 cost trends, which are slightly less than the assumed future inflation rate of 2.5 percent per year.  The study finds the cost of pipeline construction is divided roughly equally between materials, labor and miscellaneous. In 2007, materials costs accounted for over 35 percent of total costs, but have since declined. The miscellaneous category includes engineering, surveying, administration, and environmental costs. Costs for right-of-way account for 8 to 9 percent of total construction costs. This component has recently increased at a slightly faster rate than the other components. It is projected that the labor and right-of-way components will grow slightly faster than the other components, as skilled labor remains a premium commodity and pipeline permitting and siting continue to increase in complexity. The cost of materials is projected to increase at a rate slightly less than inflation and account for about 25 percent of total pipeline construction costs by  In all cases, cumulative transmission pipeline expenditures are similar through 2012, but they diverge thereafter. Considering the time required for pipeline planning, permitting and construction, it will take a few years before policy shifts such as those assumed in the High Gas Growth Case and the Low Electric Growth Case affect natural gas infrastructure investment. Pre-2012 pipeline infrastructure projects are already in advanced planning or already under construction, so they are not likely to be affected much by policy changes.” 20

21 Pipeline extension planned for 3 years away Keeps company viable until pipeline arrives Customer will convert its burner/boiler now Customer will be ready when pipeline arrives Customer will have relationship with the LDC now NG Advantage leaves when pipeline arrives

 LDC puts in assets: pipes, one access point & meter  LDC sells interruptible contract to companies, installs meters at each facility  LDC owns customers  NG Advantage trucks CNG 24/7  Customers have political stake in future pipeline extension to save more $  When pipeline arrives  Customers – no change but save more money  LDC – bills as usual, conversions already done  NG Advantage - leaves Together We can Serve a “Stranded” Cluster For a Lot Less

 Community or center of town must have: ◦ Large anchor tenants ◦ Small businesses & residential ◦ Existing pipes or LDC can install (capital expenses better for rate of return) to each customer ◦ One point of entry and meter for NG Advantage ◦ Individual meters for each local customer  Questions ◦ Will 20% add on apply to new customers like these? ◦ Will the PUC need to approve them paying a different rate than other customers? ◦ Source of backup fuel ? Maybe central heating plant Together We Can Serve a Community for a Lot Less

OEM NG Advantage Sell to customers, let NG Advantage provide the delivery  Sign a huge facility or gather enough smaller ones ie: industrial park  Install infrastructure  Provide one point of entry to gas network or a heating plant  Sell to all customers  Train and convert all customers  Petition for a new CNG rate class – NG Advantage’s cost built into distribution rate  LDC invest in NG Advantage’s infrastructure, compressor station or trailer If large enough, NG Advantage will:  Build a compressor station or truck from an existing station  Provide tractors and trailers  Build Off-Loading Station at LDC’s point of entry location

Municipal PropaneMunicipal Methane Montpelier, Rutland and St. Johnsbury, Vermont  Pipes to each business and residence  One access point for propane  Delivered by train ****  Today bio mass steam to each downtown business & State office buildings in Montpelier Burlington, VT (MGP)  Methane to each residence and business  Coal arrived by barge to gasification plant Back To The Future

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1. Compressor site on pipeline2. Delivered in composite containers 3. Customer Off-Load Station4. Empty trailers return for refilling How Does It Work

30 NG Advantage LLC P.O. Box 817 Milton, VT Mary Evslin VP of Marketing