1. Natural Gas & Oil Infrastructure in the Rockies An Update JOINT MINERALS, BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE Casper, Wyoming May 25, 2006

2. A Lesson From Natural Gas

4. Garfield County, Colorado Colorado Oil and Gas Commission

5. AAPG

6. Gas Infrastructure Added in Last 5 years MidAmerican Kern 1,052 MMcfd El Paso Cheyenne Plains 770 MMcfd William’s Northwest 175 MMcfd El Paso CIG 50 MMcfd WBI Grasslands 80 MMcfd Total of 2,127 Mcfd added in the past 5 yrs

7. THE FUTURE! 1.8 Bcfd 42 –inch diameter 1,323 Miles

12. Crude Oil In The Rockies

13. What Has Happened to Rockies Crude Prices?? Rockies production increasing Express Pipeline capacity increased in 2005 adding approximately 110,000 of potential additional Canadian crude Export pipelines approached capacity in late 2005 Suncor refinery fire eliminates demand for 60,000 Bopd Refinery turnarounds and low sulfur diesel requirements exacerbate the problem

14. Regional Crude Production is Growing in Some States EIA 395 MBOPD424 MBOPD

15. Current Status of Infrastructure

16. Production/Refinery Balance Oil ProductionRefinery Capacity Montana89,000181,200 North Dakota93,00058,000 South Dakota4,0000 Wyoming139,000152,000 Nebraska7,0000 Utah43,000167,350 Colorado54,00087,000 Subtotal429,000645,550 Available Refinery Capacity216,550 Export via Enbridge in N Dakota78,000 Export via Platte in Wyoming143,000 Canada (Import capability via Express)280,0000 Source: EIA

17. The Law of Supply and Demand Wikipedia

18. WTI $60.75 OK Sweet $60.75 WY Sweet $35 KS $55.75 Prices on 3/23/06 The Crude Market a Few Months Ago

19. Platts – North America Crude Wire The Market Today

20. The World Might be Fine but for the Fact that …….

21. Canadian Association of Petroleum Producers (CAPP)

26. Solutions to Crude Oil Bottlenecks in the Rockies

27. The Future is Rail? Commodity:Fuels Search Date:2006-04-10 Route:BNSF Tank Cars Shipper Owned/Leased Zero Mlg. DestinationsOrigin: GUERNSEY,WYTransit Time NORMAN, OK $2794 N/A per car Standard tank car is 23,500 gallons or 525-550 Bbls.

28. Current Proposed Expansions are a Band-Aid to Long Term Development Efforts Kinder Morgan Platte Pipeline (added pumping capacity) 15-25,000 Bbl/D $1.50 per Bbl tariff (new shippers only) Enbridge (to Clearbrook, MN) 35,000 Bbl/D $0.15 per Bbl tariff (all shippers)

29. Near term (2 yr) Kinder Morgan Pony Express Re-conversion up to 200,000 Bbl/D

30. The Plan to Convert from Crude to Natural Gas

31. Cost of a Reconversion Natural Gas Contracts $124 million Reconversion Cost $115 million Cost Allocation to Existing Pipe $100 million? Total Cost to Convert $339 million

32. Follow an NGL Line to Cushing? Add in El Paso Medicine Bow to get you north and central.

33. Grass roots pipeline from Wyoming to Cushing, OK 400,000 Plus Bbl/D – Up to $1.2 billion Longer term (3-5 yr)

34. Solutions Require Commitments Long Term Commitments to Capacity Support of Canadian Imports to Anchor a Solution Support and Commitment of Refiners to Buy Wyoming Crude Support of Producing Community to “get behind a common solution – quickly”

35. Wyoming Pipeline Authority Bryan Hassler Executive Director 303-748-6473 152 North Durbin Street, Suite 230 Casper, Wyoming 82601 Office (307) 237-5009 Fax (307) 237-5242 www.wyopipeline.com