Transwestern Pipeline Wyoming Oil and Gas Conservation Commission

Transwestern Pipeline Wyoming Oil and Gas Conservation Commission June 28, 2005

Agenda • Quick Overview of Transwestern Pipeline • San Juan Expansion 2005 • Phoenix Lateral Expansion • Q&A 2

Southern Union Company Organizational Structure Southern Union Company GE Corporation & Others 50% Missouri Gas Energy PG Energy New England Gas Panhandle Energy Panhandle Eastern Pipe Line Trunkline Gas Company Sea Robin Pipeline Trunkline LNG PEI Power FERC Regulated Local Distribution Companies 3 Electric Co-Gen Plant Southwest Gas Storage El Paso Citrus Holding 50% CCE Holdings 100% Transwestern 50% Citrus Corp. 100% Florida Gas Transmission

Operating Units 4 4

Transwestern Pipeline San Juan Expansion • 375 MMcf/d increased San Juan lateral capacity • Added 72 miles of 36” pipeline and 16, 500 incremental hp • Total cost - $150 million including interconnects • 90% subscribed under 10 -year contracts • Became operation in May 2005 6

San Juan Basin / Rockies Supply Capability (Bcf/d) • San Juan Plants to TW • I/B Link – Northwest Pipeline • Trans. Colorado • Chaco plant • Blanco plant Total 7 1. 225. 700. 300 . 450. 500. 550 3. 725

Project Key Elements • Filing process with FERC follows successful San Juan expansion process • All Shippers desire firm upstream rights (access to San Juan & Rockies production basins) • Phoenix customers require: – 16 hour day delivery capability – Minimum 525 psig delivery pressure – ACC pre-approval of transport cost recovery 9

Timeline August-October 2005 July 2005 Expansion Agreements Executed February 2005 Received initial shipper term sheets and began negotiations on expansion agreements Began preliminary route design work October 2006 Utilities file/receive ACC pre-approval Receive FERC Certificate Contract contingencies removed Construction Begins August 2005 Commence Stakeholder Efforts, Including Open Houses Q 1 2006 Q 2 2007 Complete stakeholder process In Service Draft Environmental Impact Statement File FERC applications Order pipe 10

Information • Website: WWW. crosscountryenergy. com/about/tw. shtml • Commercial Contacts: Business Development • Kevin Hyatt 713 -989 -2692 kevin. hyatt@panhandleenergy. com • Lorraine Lindberg 713 -989 -2693 lorraine. lindberg@panhandleenergy. com • Mark Mc. Connell 713 -989 -2694 mark. mcconnell@panhandleenergy. com • TK Lohman 713 -989 -2655 tk. lohman@panhandleenergy. com • Paul Y’Barbo 713 -989 -2654 paul. y’barbo@panhandleenergy. com Capacity Marketing 11