1. Promoting Energy Infrastructure, Creating Opportunities, and Enhancing Reliability Business Continuity Strategies Houston, TX November 9-10, 2006

2. Agenda WPA – what are we? National production history, forecast Wyoming and Colorado specific Pipeline infrastructure Socioeconomic impacts Other commodities

4. Source: 10/30/06 Raymond James

6. -2.88 -1.07 +2.51 Source: EIA

8. Regional Natural Gas Production is Growing 260 MMcfd/yr (Note: much of CO production comes from the San Juan Basin) Source: EIA 8,496 MMcfd 8,754 MMcfd 8,955 MMcfd

9. Wyoming Natural Gas

14. Colorado Natural Gas

16. Garfield County, Colorado Colorado Oil and Gas Commission

17. Natural Gas Infrastructure

18. 1997 Source:EIA

19. Gas Infrastructure Added in Last 5 years MidAmerican Kern 1,052 MMcfd El Paso Cheyenne Plains 770 MMcfd William’s Northwest 175 MMcfd El Paso CIG 50 MMcfd WBI Grasslands 80 MMcfd Total of 2.1 Bcfd of export capacity added in the Rockies over the past 5 yrs (pre REX)

20. Current Constraints Wamsutter to Cheyenne Nearly all Export Points

22. El Paso Cheyenne Plains Kinder Pony Express Kinder Trailblazer WBI Grasslands Kern River NWP PNW NWP SJB Kinder TransColorado Southern Star

23. Approximate Pipeline Capacity Out of the Rockies on 9-12-2006 Certificated Cap (X 1000)MMBtu/day Flowing (X 1000)MMBtu/day MidAmerican Kern1,729*2,032 William’s NWP PNW653643 William’s NWP South349 Kinder TransColorado375367 Kinder Trailblazer846875 El Paso Cheyenne Plains770693 El Paso CIG330 Southern Star190 Kinder Morgan Pony255234 WBI Grasslands80 Total Major Pipe Export5,577 (6,148) 5,793 *2,300 Available

24. Note That Winter Demand in the Rockies is Substantial Peak Day > 3.5 Bcfd Denver Salt Lake City

25. Note That Storage Injections in the Summer Help Augment Pipeline Takeaway Capacity Clay Basin Storage (Questar) Elk Basin Storage (WBI) Young Storage (XCEL/El Paso) Fort Morgan Storage (El Paso) Huntsman Storage (Kinder) Clear Creek Storage (Questar) …………..

28. THE FUTURE! 1.8 Bcfd 42 –inch diameter 1,323 Miles

30. WIC Piceance Lateral REX Zone 1 (formerly Entrega) Questar Overthrust WIC Mainline

31. Storage Opportunities

32. Socioeconomic impacts

33. Energy Price Sensitivity Crude Oil  [ $0.25 per bbl. change ] ± $1.6 million revenue change. Coal  [ $0.25 per ton price change ] ± $13.6 million revenue change. Natural Gas  [ $0.25 per mcf change ] ± $50.7 million revenue change. Note: revenue sources include severance taxes, federal mineral royalties, and the school foundation portion of ad valorem taxes (based on FY06 projections). Source: January 2006 CREG Forecast and Legislative Services Office. Wyoming Economic Analysis Division

34. Current Economic Conditions Upside - Energy continues to bolster the economy! Net population in-migration last 4 years. Jobs, jobs, jobs!!! 8,800 (3.4%) between April 2005 to April 2006. Consumer spending continues to climb. Retail sales taxes up 14% from year ago. State revenue out-pacing forecast. General Fund ahead 7.4% ($65 million). Gross State Product soars in 2004. GSP increased 7.6% to $24 billion; ranked 12 th in U.S. (6.7%). Wyoming Economic Analysis Division

35. Current Economic Conditions Downside: Influx of workers stress communities. Increases traffic, domestic violence, drug use, 911 emergency services. Housing shortage: escalating property values, affordable housing becoming non-existent. Lodging shortage – accommodations for travelers short supply. Population: low growth and net in-migration. Transient versus permanent population. Uneven growth: energy boom is spreading wealth unevenly across state. Low industrial diversification. Workforce availability: strong regional competition for construction labor/ in-state competition from growing mining industry. 4Q05 inflation hits 5%; U.S. at 3.4% Wyoming Economic Analysis Division

37. Wyoming Job Growth Outlook: 8,400 New Jobs in 2006 6,200 6,100 2,500 2,100 5,400 7,600 8,400 Forecast Wyoming Economic Analysis Division

38. Investing in the future… Education is top priority: $400 million Hathaway Scholarship Program. $105 million endowed professorships $2 billion K-12 education funding. Other: $564 million Permanent Wyoming Mineral Trust Fund. $100 million tax cut (sales tax on groceries.) $40 million Wildlife Trust Fund (conservation grants, habitat improvement.) Infrastructure increased bonding authority from $1 billion to $3 billion. Capital improvements – schools, prison, state buildings. Wyoming Economic Analysis Division

39. Other commodities

40. Crude Oil Prices have rebounded since Spring 06. Pipeline infrastructure is tight but no consensus on new outlets – let’s talk! Refining expansions and new refining initiatives are expensive and have lengthy permitting lead times. Production continues to grow in the region.

41. CO2 Infrastructure and Announced Advanced Coal Sites

42. www.wyopipeline.com Colby Drechsel Associate Director cdrechsel@qwest.net 307.259.8459 152 North Durbin Street, Suite 230 Casper, Wyoming 82601 Office (307) 237-5009 Fax (307) 237-5242 www.wyopipeline.com