Bryan Hassler, Executive Director Society of Petroleum Engineers January 21, 2004 Rock Springs, WY

2 The Problems Facing America…………. High Prices Declining Supplies in Traditional Basins Lack of Access to New and Growing Basins

3 High Prices J F M A M J J A S O N D Avg

5 Declining Supplies

6 Lack of Access

7 What Can Be Done???????????

8 Growth In Production 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

9 Jonah Unrestricted Development

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

11 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

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

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14 Kern River Expansion California Action Project 135,00 Dth/d July 1, ,900 hp of compression $81 million Kern River 2002 Expansion Additional 10,500 Dth/d May 1, ,000 hp of compression (6,000 new) $31.4 million Kern River 2003 Expansion 906,626 Dth/d May 1, miles of 36 and 42 inch pipe 160,000 hp of compression $1.3 billion

15 WBI Grasslands Pipeline 80,000 Dth/d Nov 1, miles of 16 inch pipe 5,380 hp of compression Expansion to 200 MMcfd

16 Cheyenne WY MT OK KS CO NM UT AZ Cheyenne Plains NE SD Cheyenne Plains Pipeline Capital cost: $336.5 MM Pipe: – 380 miles of 30" – 7 miles of laterals Compression: 33,155 hp Capacity: 560 MDth/d Expandable to 1,000 MDth/d In-service: August 2005 El PasoNGPL CIGPEPL WICWNG NNGTrailblazer ANRMCMC Greensburg

17 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.

18 Intraregional Projects Questar Kern Expansion Northwest Rockies Expansion El Paso Front Range Expansions Xcel Front Range Projects Kinder Huntsman Storage Project Totem Gas Storage Project Wyoming Interstate/Overthrust Backhaul Projects Jonah/Opal/Powder/Wind River Gathering/Processing Expansions

19 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.

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 Wyoming’s 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 nation’s best interests.

21 Thanks for the opportunity to speak with you. Bryan Hassler President - United Energy Partners, LLC & Interim Executive Director - Wyoming Natural Gas Pipeline Authority th Street, 3 rd Floor Denver, CO Ph Cell Fax Wyoming Pipeline Authority Presentations Can be Accessed via the Wyoming Oil & Gas Conservation Commission Website at: