1. Overview & Status May 2001

2. Joint Team Objectives Create an economic project (competitive cost of supply) Develop sufficient technical information to support FERC/NEB applications as soon as possible (target - year end 2001) Prepare for next phase of activity Safe and Environmentally Responsible

3. Miles 0510152025 TAPS Northstar Endicott Prudhoe Bay Kuparuk Milne Point NPRA ANWR Coastal Plain (1002 Area) Colville River LJL (April, 1997) Pt. Thomson Developments Major Discoveries Alpine Liberty Badami Location Map Alaska Gas Resources & Major Producers North Slope known resource ~ 35 Tcf Prudhoe Bay – 8 Bcf/d of production currently Reinjected into reservoir Ultimate resource estimates ~100 Tcf Alaska Gas Owners ExxonMobil Phillips State Others BP

4. BCF/DayTCF/Year Existing Growth 2010 New Source Needs Source: NPC, December 1999 & Tokyo Gas, 2001 Supply/Demand - Asia Comparison

5. North American Gas Supplies/Markets

6. Joint Team Organizational Chart Management Committee Program Mgr AK to Alberta Program Mgr Alberta to Market Program Mgr NGL Project Svcs Mgr Enviro. & Regulatory Mgr External Affairs Mgr Commercial Mgr PTU PBU Interface Project Mgr Gas Treatment Plant Project Mgr P/L AK to Alberta Project Mgr P/L Alberta to Mrkt. Project Mgr Infrastructure Studies Project Mgr NGL Facilities AK to Alberta Sector Alberta to Mrkt. Sector NGL Economic Modeling/ Integration Bus Develop. US Regulatory Canadian Regulatory Enviro. Mgr. US Enviro. Mgr Canada Land Mgr. AK to Alberta Land Mgr. Alberta to Mrkt. Technical Services Mgr. Project Controls Mgr. Managing Project Counsel

7. Southern Pipeline Route Land Status For in Green Pipeline Route (in Green) Alaska Miles Kilometers Federal 249 401 State 368 607 Municipalities 20 32 Native Corp. 60 97 Private 86138 _ Total 7831275 Canada Miles Kilometers Crown 402647 Provincial 6781091 First Nations 70113 Private 4978 _ Total 11991929 Total Route 19823204

8. Northern Pipeline Route (in Pink Land Status For Pipeline Route (in Pink) AlaskaMilesKilometers Federal48 77 State157 253 _ Total205330 CanadaMilesKilometers Crown (Federal)7631229 Provincial378 609 First Nations224361 Private property4978 _ Total14142277 Total Route 16192607

9. Alberta to Market Pipeline System (B-C) : New-Build and/or Expansion NGL Extraction Facility: Removal of C 2 + Alaska to Alberta Pipeline System (A-B) : –Buried, High Pressure, Chilled Pipeline –Intermediate Compression –Block Valve Stations –Intermediate Pigging Facilities Overall Project Scope Gas Treatment Facility (Prudhoe Bay) : Removal of Acid Gases - CO2, H 2 S Compress / Chill gas to P/L entry conditions Environmental / Regulatory – US Field studies Environmental / Regulatory – Canada Field studies Land – Canada (2) Land – US Lower 48 US Alaskan

10. The “Seven Lenses” of Evaluation Economics Revenues Jobs Gas Access Safety Timing Environment

11. Conceptual Pipeline System Components Pipeline system is comprised of four main facilities: –Buried pipeline (~48”, ~2500psi, high strength steel) –Intermediate compression facilities –Block valve stations –Intermediate pigging facilities To Market Prudhoe GTP Reinjection to Oil Fields Intermediate Compression Facilities Valve Stations North Slope Compression Buried Pipeline Gas Production

12. Applying 21 st Century Technology Attributes –Advanced materials & design –High Pressure operation –Buried line with thermal control –Fewer, more powerful compressor stations –Advanced construction (trenching, welding, river crossings) –Advanced communication & control systems –Advanced monitoring and maintenance systems Benefits –Lower fuel consumption –Reduced emissions –Smaller footprint –Reduced environmental impact –Expansion capacity –Lower cost of supply –High reliability

13. Conceptual Pipeline Construction Plan Multiple construction spreads working over 3 year period. Onshore –Principally winter construction – especially in permafrost. –Pipeline buried except for few specific crossings. –Grade-only construction where soils allow. –Primarily snow pads where soil/vegetation require protection. –Gravel construction pads required where protection is required and slopes are excessive for snow pads. Offshore –Summer construction from lay vessels. –Primarily offshore supply from existing infrastructure.

14. Wrap-up We are fully engaged in a joint program to evaluate and progress a large, modern pipeline from Alaska to Canada and the lower 48 states There is a growing market for Alaskan gas, but we must be cost-competitive to be a viable project It is premature to preclude any options at this point

15. Contract Awards The project will be in excess of 75 million dollars, with 90 employees, and 500+ contractors and subcontractors The following ten contracts were awarded for: –4 for Engineering and Conceptual Design North Slope to Alberta Alberta to US Markets Gas Treatment Plant (GTP) Natural Gas Liquids (NGLs) –2 for Environmental –4 for Land Services

16. Contract Awards The companies that were awarded the contracts are: –VECO, headquartered in Anchorage, in a joint venture with Fluor, based in Sugar Land, Texas and Calgary –The AlasCan Group, based in Calgary, is in a joint venture between five companies: Kellogg Brown & Root in Houston and Edmonton, COLT Engineering in Calgary, Michael Baker Jr.’s Anchorage office, Natchiq and NANA/Colt Engineering LLC, both in Anchorage –Natchiq, headquartered in Anchorage in a joint venture with Parsons Engineering based in Arcadia, CA. –The URS team based in Anchorage, will dedicate over 100 employees to this project –AMEC Earth and Environmental, based in Calgary will dedicate over 80 employees to this project –American Reclamation Group LLC based in Anchorage –Scott Land and Lease, based in Calgary and Progress Land Services, based in Edmonton –Wilbanks Resources Corporation, based in Denver