Lower Valley Energy Natural Gas Pipeline Update Hoback Canyon Pipeline Wyoming Oil and Gas Commission October 25, 2005

Lower Valley Energy John Hoback – Guide of the Astorians History – PSC Certificate Ground Breaking Ceremonies July 8, 1996 Afton August 29,1996 Jackson Gas Service started late fall of 1997

Lower Valley Energy LNG Tank Yard

Truck Unloading Facilities

Lower Valley Energy 10,000 gallon delivery increments Jackson Deliveries – 1 truck every other day in summer – 3.5 trucks per day in winter (record is 6 on one cold winter day) Afton Deliveries – 1 truck per week in summer – 2 per week in winter

Ambiant Air Vaporizors

A Look Inside

Vaporizors at Work

Control Facility with Backup Generation and Boilers

Gas Leaves Plant for Jackson Usage

Lower Valley Energy 2003 usage – 4,875,720 gallons LNG Equivalent to 402,819 Mcf or 500 trucks LNG Average 1.5 Mcf per day in summer & 2.5 Mcf per day in winter Projected usage by 2010 – 6,590,150 gallon LNG Equivalent to 544,461 Mcf or 665 trucks LNG

Lower Valley Energy Hoback Canyon Pipeline The Basics: 49.7 miles of 6” natural gas pipeline Pipeline begins at William’s Merna tap, travels through Bondurant, the Hoback Canyon, over Camp Creek Saddle and terminates at Jackson, Wyoming 10.6 miles of parallel highway construction through Hoback Canyon Route is 58% USFS, 2% State & 40% Private

Proposed Natural Gas Pipeline Hoback Canyon Pipeline

Lower Valley Energy Hoback Canyon Pipeline Draft EIS due out this fall Currently purchasing needed private ROW 3 rd Party WYDOT Review PSC Certificate of Public Convenience and Necessity Planned for construction in summer/fall 2006 Operational by late 2006

Lower Valley Energy Hoback Canyon Pipeline Update Questions & Comments Chad Jensen Vice President Lower Valley Energy