1. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 1 ASAP Project Update Presented to the In-State Gas Caucus July 30, 2012

2. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 2 Experience and Expertise at Work

3. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 3 Two Pipeline Projects on Table ASAP – the in-state, stand alone gas pipeline project –The rail-belt energy solution if a large LNG export project does not happen or will not happen within a reasonable timeframe Large LNG export project –The LNG export feasibility study by ExxonMobil, BP, ConocoPhillips, and TransCanada is due by the end of the 3 rd Quarter 2012 Alignment/Merger/Consolidation Governor Parnell, “the next step is for the producers and TransCanada to get together with AGDC to determine whether there is interest and value in merging, combining those efforts”. These efforts have been hampered by concerns over confidentiality of shared information

4. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 4 ASAP Route & Features Mainline: –737 miles long, 24” buried pipe –2,500 psi max operating pressure Fairbanks Lateral: –35 miles long – 12” buried pipe –Line connects at Dunbar North Slope Gas Treatment Facility Gas Take-off Facility/NGL Straddle Plant at Dunbar Two Compressor Stations Cook Inlet NGL Extraction Plant

5. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 5 ASAP Cost to State and Estimated Tariffs Cost to State - $400MM to be recovered through future gas royalty and taxes Project Capital Cost - $7.52 Billion, in 2011 dollars - plus/minus 30%, to be recovered through tariffs paid by consumers of gas Cost of Gas to Consumers – based on the Project Capital Costs and the proposed project, the tariff model supports the following burner tip cost of gas: –Fairbanks $10.45/MMBtu in 2011 dollars –Anchorage $ 9.63/MMBtu in 2011 dollars

6. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 6 Activities for FY 2013 Final Environmental Impact Statement (FEIS) –The FEIS should be completed late Fall, 2012 Record of Decision (ROD) –This results in AGDC obtaining the final federal decision on the EIS and is anticipated 30 days following the FEIS BLM Right-of-Way Grant (ROW) –Approval will grant AGDC a ROW for crossing about 100 miles of federal land and a decision is anticipated following receipt of the ROD DNR Right-of-Way Lease –Complete appraisal and title work on the 604 miles of state ROW 404 Wetlands Permit –This is necessary for all wetlands crossed by the project, completed application should be submitted to the US Army Corps of Engineers first quarter, 2013 Engineering –Pipeline engineering is progressing; FY 13 the facilities engineering will include more detailed plans –Project cost estimates will continue to be refined in preparation for open season Public Outreach –A Community Advisory Council (CAC) has been formed to establish consistent communication with the affected communities

7. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 7 Legislation Needed to Advance Project Appropriate $200 million to complete an open season for the in-state natural gas pipeline Allow AGDC to enter into confidentiality agreements as necessary to carry out its duties Decide how ASAP pipeline would be owned and operated Provide for natural gas transportation as a contract carrier Establish a regulatory framework for contract carriers

8. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 8 How to contact ASAP Alaska Gasline Development Corporation ASAP Project Office 3301 C Street, Suite 100 Anchorage, AK 99503 General Office – 907.330.6300 Fax – 907.330.6309 www.agdc.us Public Affairs I Leslye Langla I 907.330.6320

9. ALASKA GASLINE DEVELOPMENT CORP. | Tel: 907.330.6300 | Toll-Free: 855.277.4491 | Fax: 907.330.6309 | Website: www.agdc.us 9 Alaska Gasline Development Corporation working to solve Alaska’s energy issues www.agdc.us