1. Presentation to RDC by: Charles A
Presentation to RDC by: Charles A. Pierce III Vice President Unocal Alaska

2. COOK INLET NATURAL GAS SUPPLY ISSUES
Cook Inlet Producing Assets are declining
There has been very little exploration for gas in the Cook Inlet
Exploration for new sources is required to meet mid - long term requirements

3. 2001 Cook Inlet Gas

4. Possible 3TCF Uncontracted demand through 2022

5. GAS SUPPLY FUNDAMENTALS
Establish Acreage Position
Unocal has > 100,000 net acres on the lower Kenai Peninsula
Develop Adequate Reserve Base
Drilling programs
Joint program with Marathon
Unocal operated Program to begin in December
Secure Transportation System
Pipeline project with Marathon, Enstar, and HEA
Supply Market Needs
Contract to Agrium and Enstar

6. Kenai - Kachemak Pipeline Project Area Map
Phase 1
Kenai - Kachemak Pipeline Project Area Map
Ninilchik Unit
Phase 2
Anchor Point
Area
Possible Distribution

7. PROJECT SUMMARY Drilling Program Current - 3 wells in Ninilchik Unit
Planned to 9 depending on success
Pipeline
Design - 12 to 16 inch diameter
Cost - ~ $40 - $50 million
Total Project Success Budget
> $100 million over 3 years
Timing
Target start-up Nov.1, 2003
Will require expedited approval process