1. Bryan Hassler, Executive Director Western Energy Institute Domestic Supply Perspectives October 23, 2003 Las Vegas, NV

2. 2 The Sky is Falling……………

3. 3 The Problems Facing North America…………. High Prices Declining Supplies in Traditional Basins Lack of Access to New and Growing Basins

4. 4 High Prices – NYMEX Last Day Settle 1993199519971999200020022003 Jan2.051.654.001.772.342.654.97 Feb1.601.462.991.712.612.035.66 Mar1.941.451.781.692.602.409.00 Apr2.261.581.811.852.903.415.12 May2.761.672.122.343.093.345.11 Jun1.981.752.122.234.413.435.96 Jul1.941.512.152.264.373.315.33 Aug2.131.342.162.603.822.904.65 Sep2.361.532.522.914.623.334.88 Oct2.051.653.322.565.313.704.44 Nov2.191.783.273.094.544.14 Dec2.402.292.582.126.024.14 Avg2.141.642.572.263.893.235.51

5. 5 Declining Supplies……………..

6. 6 Anadarko Basin and Hugoton Embayment

7. 7 Thomas Driscoll – Lehman Brothers “………. LNG won’t fill supply gap until at least 2006-2008 time frame.” “…….available gas supply will drop by 5% this year…..due to an expected decline in domestic production of 2% and a decline in Canadian imports of 10%.”

8. 8 Lack of Access

9. 9 What Can Be Done??????????????

10. 10 Invent a Better Chicken???????

11. 11 Look to Growing Supply Areas

12. 12 Green River Basin

13. 13 Southwest Wyoming Plant Output (MMcf/day) 1998 – 807 1999 – 836 2000 – 911 2001 – 986 2002 – 1,117 2003 (Mar) – 1,269 MMcfd Average daily throughput Opal/Granger/Blacks Fork Plants Data Source – WOGCC

14. 14 Powder River Basin Production

15. 15 Powder River Basin CBM Output (MMcfd) 1998 – 82 1999 – 156 2000 – 403 2001 – 673 2002 – 848 2003 (Mar) – 905 MMcfd Data Source - WOGCC

16. 16 Other Wyoming Areas of Production Growth Wamsutter/Echo Springs – 346 MMcfd Lost Cabin/Madden Deep – 190 MMcfd Note: Lost Cabin Shut-in for much of 2003 due to operational problems.

17. 17 Growth In Production – Colorado (Garfield County) 1999154,000 Mcfd 2000190,000 Mcfd 2001241,000 Mcfd 2002315,000 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

18. 18 Does The West Have Supply Issues?

19. 19 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

20. 20 Pipeline Projects In-service or Full Market Support Kern River Pipeline Expansion Williston Basin Grasslands Pipeline El Paso Cheyenne Plains Pipeline

21. 21 Kern River Expansion California Action Project 135,00 Dth/d July 1, 2001 53,900 hp of compression $81 million Kern River 2002 Expansion Additional 10,500 Dth/d May 1, 2002 21,000 hp of compression (6,000 new) $31.4 million Kern River 2003 Expansion 906,626 Dth/d May 1, 2003 716 miles of 36 and 42 inch pipe 160,000 hp of compression $1.3 billion

22. 22 WBI Grasslands Pipeline 80,000 Dth/d Nov 1, 2003 247 miles of 16 inch pipe 5,380 hp of compression Expansion to 200 MMcfd

23. 23 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

24. 24 Everybody Likes Rockies Supplies…….

25. 25 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.

26. 26 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

27. 27 Cost of Limited Infrastructure to Wyoming $130 + million in Federal/State royalties and severance taxes – 2002. $1 million per day in March 2003. Stalled investment in development of mineral resources. Limited ability to predict revenues with certainty.

28. 28 Thanks for the opportunity to speak with you. Bryan Hassler President - United Energy Partners, LLC & Interim Executive Director - Wyoming Natural Gas Pipeline Authority 1625 17 th Street, 3 rd Floor Denver, CO 80202 Ph 303-357-7314 Cell 303-748-6473 Fax 303-948-1428 Email uep1@comcast.netuep1@comcast.net Wyoming Pipeline Authority Presentations Can be Accessed via the Wyoming Oil & Gas Conservation Commission Website at: www.wogcc.state.wy.us www.wogcc.state.wy.us