1. The “Golden Age” of Natural GasThe “Golden Age” of Natural Gas ACCA Presentation – Austin, TX October 2, 2012

2. What is a “Golden Age”?What is a “Golden Age”? A “ Golden age” is a period in a field of endeavor when great tasks were accomplished... Familiar Golden Ages … The Golden age of Radio, 1920 to 1940’s The Golden Age of Television, 1950’s The Golden Age of Motion Pictures The Golden Age of Oil, 1920’s and 1960 to 1970’s domestically. The NEW Golden Age of Oil, 1980’s to present..

3. “Golden Age” of Natural Gas -“Golden Age” of Natural Gas - The Golden Age of Natural Gas, 2007 to present – Abundant, 98% of the natural gas we use is domestic, estimated now well over 200 yrs supply and growing – Cheap there is an abundant supply at lower cost  Decoupling of oil and gas prices  2008 price in the $13.00-$15.00/Mcf range, today $3.80- $5.50 Mcf – Clean burning – Natural gas is driving change in transportation, currently 1,100 CNG stations nationwide

4. Texas Triangle Growth and Demand ImpactTexas Triangle Growth and Demand Impact Texas Legislation Established Natural Gas Transportation Corridor in the 2010 Legislature. Senate Bill 20 establishes a natural gas transportation corridor in the rapidly expanding Texas Triangle, which encompasses Austin, Dallas/Fort Worth, Houston and San Antonio, by increasing the number of natural gas-refueling stations, supporting the use of natural gas-powered trucks across the state.

5. Texas Triangle ProgressTexas Triangle Progress Develop a market growth plan including policy, regulatory, legislative and develop a fleet outreach program. Process Advance the use of natural gas in transportation, develop a plan for public access stations, help transform the transportation industry by deploying NGV’s including heavy duty vehicles, and establish Texas as a leader on the development of the NGV market Goals Station growth since start of Texas Triangle work began has far exceeded initial recommendations (52 new, planned or recently awarded stations since 1/2010) Results Source: American Natural Gas Association (ANGA)

6. 2010-2012 Growth: NGVs in Texas2010-2012 Growth: NGVs in Texas Natural Gas Fuel Volume Demand Growth Since January 2010 (GGE/year) Light Duty1,762,600 Medium Duty15,400 Heavy Duty17,575,000 TOTAL19,353,000 Number of CNG and LNG Vehicles Committed and/or Deployed Since January 2010 Light Duty1,545 Medium Duty6 Heavy Duty1,361 TOTAL2,932 Source: American Natural Gas Association (ANGA)

7. 2010-2012 Station Progress in Texas2010-2012 Station Progress in Texas Number of Stations Scoping Plan Goal Existing Prior to 1/2010 1 Opened since 1/2010 1 Planned (as of 7/2012) 1 TCEQ- awarded in 8/2012 CNG 13 231368 LNG 31163 CNG & LNG 11-4 TOTAL 27152215 1 Source: AFDC Data, July 2012 Report ***As of September 16, 2012 there is a total of 1102 CNG stations nationwide with 59 existing LNG stations. Additional stations now planned 101 CNG stations and 96 LNG stations.

8. Stations: Scoping Plan and Progress Snapshot 2010 Scoping Plan August 2012 Progress

9. Next Steps: Near-Term Implementation Phase 3 Infrastructure Plans: Beyond the Triangle  Connect West to El Paso, East to Haynesville Shale, North to OKC (and onward to Canada), South through Laredo (and onward to Mexico City)  I-10 Connectivity from Houston to Los Angeles and Houston to Atlanta

10. Texas Fleets Turning to NGVsTexas Fleets Turning to NGVs Houston-based WM announced it will convert 100% of its nationwide fleet to CNG (18,342 trucks). It recently opened a public-access full retail station in Conroe, TX along the CTT. Texas-based fleets such as Central Freight (Waco), Sysco (Houston), Frito Lay (Plano), Waste Management (Houston) and other Fortune 100 fleets like UPS are now investing in natural gas vehicle programs in Texas. ANGA’s efforts spurred increased coordination for public infrastructure sharing and directly led to grant submittals and NGV program growth. Texas fleets overall are becoming leaders in NGV program efforts. UPS was awarded two natural gas stations in Texas (Houston and San Antonio) through SB 375 funding, and is coordinating with a partner for another station project in the Dallas area Source: American Natural Gas Association (ANGA)

11. Small Business ConversionsSmall Business Conversions

12. Dealership usesDealership uses

13. Emissions Reduction Incentive Grant - TCEQEmissions Reduction Incentive Grant - TCEQ The Texas Commission on Environmental Quality (TCEQ) offers a variety grants periodically to help offset first dollar costs of conversion from gasoline or diesel fuels to CNG. One particularly of interest to this group is: Emissions Reduction Incentive Grant (ERIG) was released the first week in September. Under this program, the customer can submit any number of vehicles for replacement, there is no limit. Some of the requirements are that trucks must have a minimum gross vehicle weight rating of 8,500 lbs and could go as high as 80,000 lbs, i.e., haul trucks, dump trucks (registered up to 80,000 lbs), street sweepers, garbage trucks, delivery trucks, you name it! This program is not only limited to On-Road vehicles, but it includes Non-Road equipment, from agricultural tractors to heavy construction vehicles. Contact www.terpgrants.org for details.www.terpgrants.org Source: Texas Commission on Environmental Quality

14. Single Pump CNG StationSingle Pump CNG Station Clean Energy Station – Bush International - Houston

15. CNG Storage TanksCNG Storage Tanks Clean Energy Station – Bush International - Houston

16. CNG CompressorCNG Compressor Clean Energy Station – Bush International - Houston

17. Bold 10 Year NGV Adoption Goals: Demand Growth Projection TOTAL 2012-2022 Projected BCF Creation: 226.63 Source: American Natural Gas Association (ANGA)

18. Local Financial HelpLocal Financial Help Texas Gas Service – $3000.00 Rebate for a conversion – $2000.00 Rebate for an OEM like Honda Civic  Contact www.texasgasservice.com for more details.www.texasgasservice.com For qualified customers. Clean Energy has potential vehicle and conversion financing.

19. Texas Gas Service Payback Calculator

21. Questions? Contact Wayne Snead Texas Gas Service 5613 Avenue F. Austin, TX 78751 512-407-2014 512-276-0215 Cell wsnead@txgas.com