1. Bryan Hassler, Executive Director Society of Petroleum Engineers January 21, 2004 Rock Springs, WY

2. 2 The Problems Facing America…………. High Prices Declining Supplies in Traditional Basins Lack of Access to New and Growing Basins

3. 3 High Prices 19931994199519961997199819992000200120022003 J2.0502.1151.6453.4483.9982.3091.7652.3449.9782.6504.970 F1.6002.4601.4602.3402.9862.0011.7142.6106.2932.0255.660 M1.9402.3951.4452.7461.7802.2861.6932.6034.9982.3959.000 A2.2601.9551.5752.7791.8072.4091.8522.9005.3843.4105.120 M2.7602.0601.6732.2142.1222.2622.3403.0894.8913.3405.110 J1.9801.8501.7502.3612.1222.0172.2264.4063.7383.4305.960 J1.9401.9451.5052.6462.1452.3582.2624.3693.1823.3055.330 A2.1301.7801.3402.3222.1611.9422.6013.8203.1672.9004.650 S2.3601.4551.5301.8532.5151.6722.9124.6182.2953.3254.880 O2.0451.4151.6471.8283.3242.0312.5605.3121.8303.6954.440 N2.1851.6751.7802.6523.2661.9723.0924.5413.2024.140 4.460 D2.4001.7202.2853.9012.5772.1492.1206.0162.3164.1404.880 Avg2.1381.9021.6362.5912.5672.1172.2613.8864.2733.2305.372

5. 5 Declining Supplies

6. 6 Lack of Access

7. 7 What Can Be Done???????????

8. 8 Growth In Production Wyoming Production From Major Plants and Fields (Sales) Production is stated in MMCFD and is average daily production for a particular year. BlacksEchoLostPowder OpalGrangerForkSpringsCabinPavillion River Basin 1998545172893033582 1999582156982795547156 20006451391272957850403 20017131481253238456673 2002839189893469168848 Oct ’03 Average10782559834412145952

9. 9 Jonah Unrestricted Development

10. 10 Growth In Production – Colorado (Garfield County) 1999154,000 Mcfd 2000190,000 Mcfd 2001241,000 Mcfd 2002315,000 Mcfd March ’03365,000 Mcfd Going to?1 Bcfd + Major Operators include: EnCana, Williams, Calpine, Mesa, Tom Brown, Exxon/Mobil Data Source: Colorado Oil and Gas Conservation Commission

11. 11 Producer Critical Success Factors Access to Federal Lands Gas Price Timing of Regulatory Approvals Gathering System Capacities and Pressures Transportation Export Capacity Capital Efficiency Public Acceptance

12. 12 Pipeline Projects In-service or Full Market Support Kern River Pipeline Expansion Williston Basin Grasslands Pipeline El Paso Cheyenne Plains Pipeline

13. 13

14. 14 Kern River Expansion California Action Project 135,00 Dth/d July 1, 2001 53,900 hp of compression $81 million Kern River 2002 Expansion Additional 10,500 Dth/d May 1, 2002 21,000 hp of compression (6,000 new) $31.4 million Kern River 2003 Expansion 906,626 Dth/d May 1, 2003 716 miles of 36 and 42 inch pipe 160,000 hp of compression $1.3 billion

15. 15 WBI Grasslands Pipeline 80,000 Dth/d Nov 1, 2003 247 miles of 16 inch pipe 5,380 hp of compression Expansion to 200 MMcfd

16. 16 Cheyenne WY MT OK KS CO NM UT AZ Cheyenne Plains NE SD Cheyenne Plains Pipeline Capital cost: $336.5 MM Pipe: – 380 miles of 30" – 7 miles of laterals Compression: 33,155 hp Capacity: 560 MDth/d Expandable to 1,000 MDth/d In-service: August 2005 El PasoNGPL CIGPEPL WICWNG NNGTrailblazer ANRMCMC Greensburg

17. 17 Pipeline Export Projects Proposed Kinder Morgan Advantage Northern Border Bison Project Enbridge Chicago Project Southern Star Western Frontier Project El Paso Ruby Project Kinder Morgan TransColorado Expansion.

18. 18 Intraregional Projects Questar Kern Expansion Northwest Rockies Expansion El Paso Front Range Expansions Xcel Front Range Projects Kinder Huntsman Storage Project Totem Gas Storage Project Wyoming Interstate/Overthrust Backhaul Projects Jonah/Opal/Powder/Wind River Gathering/Processing Expansions

19. 19 Cost of Limited Infrastructure to Wyoming $130 + million in Federal/State royalties and severance taxes – 2002. $1 million per day in March 2003. Stalled investment in development of mineral resources. Limited ability to predict revenues with certainty.

20. 20 The Wyoming Pipeline Authority Will Promote all industry sponsored and supported projects. Proactively promote infrastructure development within the state and the Rocky Mountain Region. Promote efficient utilization of existing infrastructure in a cost effective manner. Promote development of Wyoming’s mineral resource base in a systematic, streamlined and environmentally responsible manner. Utilize its bonding authority to build or cause to be built infrastructure projects that will enhance state netbacks and promote development of a resource base that is in the nation’s best interests.

21. 21 Thanks for the opportunity to speak with you. Bryan Hassler President - United Energy Partners, LLC & Interim Executive Director - Wyoming Natural Gas Pipeline Authority 1625 17 th Street, 3 rd Floor Denver, CO 80202 Ph 303-357-7314 Cell 303-748-6473 Fax 303-948-1428 Email uep1@comcast.netuep1@comcast.net Wyoming Pipeline Authority Presentations Can be Accessed via the Wyoming Oil & Gas Conservation Commission Website at: www.wogcc.state.wy.us www.wogcc.state.wy.us