Entrega Gas Pipeline Project Wyoming Natural Gas Pipeline

Entrega Gas Pipeline Project Wyoming Natural Gas Pipeline Authority - August 24, 2004

42 -inch 36 -inch

Project Description n n n 327 miles of new interstate pipeline facilities, including 136 miles of 36 -inch and 191 miles of 42 -inch pipe In Wyoming, approximately 50 miles of 36 -inch, 183 miles of 42 -inch Runs from Meeker Hub in Rio Blanco County, CO through Wamsutter to the Cheyenne Hub near Rockport, CO Runs through Sweetwater, Carbon, Albany, and Laramie Counties in Wyoming Future compression includes two stations in Wyoming near Wamsutter and Arlington in the I-80 corridor. 22 Main Line Valves with 14 in Wyoming

Project Description (continued) n FERC Application capacity request of 1. 5 Bcf/day (2 phases) n Phase One approximately 725 MMcf/d (free flow) n Phase Two incremental 775 MMcf/d (compression) n n Further economic incremental expansion of 500 MMcf/d Wamsutter to Cheyenne Hub Phase One receipts at Meeker Hub and delivery points at Wamsutter and Cheyenne Hub Design anticipates both receipt and delivery capability at Wamsutter Future Receipt/Delivery points to be determined with potential shippers

Project Description (continued) n n n Entrega intends to be an “Open Access” Pipeline Entrega will offer both firm (FT) and interruptible (IT) transportation services Estimated Initial Rates are approximately: – Phase One Recourse Rates $ 0. 39 (FL&U 0. 15%) – Phase Two Recourse Rates $ 0. 22 (FL&U 0. 90%) n Estimated Project Costs are: – Phase I = $575 MM – Phase II = $75 MM

Milestones Achieved n n n Preliminary work began in summer of 2003 to scope out the requirements and get a head start on the regulatory requirements FERC assigned Entrega a pre-filing docket March 19, 2004 Open Houses and separate local government meetings held on March 30, 2004 to April 6, 2004 at 4 locations in Wyoming (Cheyenne, Laramie, Rawlins and Wamsutter) Open season held June 4 to June 25 resulted in sufficient commitment to advance the project. Draft of application for FERC certificate nearing completion in anticipation of August 2004 filing

Upcoming Milestones n n n FERC Draft Environmental Impact Statement is issued and comments expected by 1 Q, 2005 Anticipate FERC Certificate for the facilities from Meeker to Cheyenne Hub by 2 Q, 2005 Expect to begin construction in summer 2005 with target in service dates of 4 Q 2005 for phase 1 and 2 Q 2007 for phase 2 Present plans are to utilize at least four construction spreads with approximately 450 construction and inspection staff per spread Construction period expected to be 3 -5 months.

Benefits to Wyoming n n Access to pipeline capacity exiting Wyoming to market hub at Cheyenne and major downstream markets Should support future Rockies export pipeline from Cheyenne Hub to be built n Additional Ad Valorem tax revenue n New construction jobs and full time jobs n Equipment and materials purchased from Wyoming suppliers n Minimal environment impact n Route: over 90% adjacent to existing rights of way

Summary n The Entrega Gas Pipeline Project is good for Wyoming – Revenue benefits – Job benefits – Minimal Environmental impact n Your support in our applications with FERC, BLM, and the local agencies will enhance agency understanding of project benefits