Totem Gas Storage Project

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Totem Gas StorageProject

• Wyoming Pipeline Authority
• March 23, 2004

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Highlights

• Located 36 Miles NE of Downtown Denver
• 9 Bcf of Working Gas
• 135 Mmcfd Injection Capacity
• 250 Mmcfd Withdrawal Capacity
• CIG Interconnect Signed
• Additional Interconnects Anticipated
• Public Service Company of Colorado (Xcel)
• Cheyenne Plains Pipeline
• Kinder Morgans Advantage Pipeline
• Southern Stars Western Frontier Pipeline

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Highlights (contd)

• High Operating Flexibility
• One Hour Injection and Withdrawal Turnaround
  Capability
• No Seasonal Restrictions on Injection or
  Withdrawal
• Inject or Withdraw, or Both, on Any Day of the
  Year

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Permits and Leasing

• All Approvals, Certificates and Permits in Place
• Colorado Oil Gas Commission
• Colorado Public Utilities Commission CPCN
• Colorado DPHE Air Emission Permits
• Adams County Conditional Use Permits
• All Required Leases and ROWs Have Been Obtained

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Reservoir Modeling

• Extensive Modeling of the Reservoir Has Been
  Performed by John Wells of Wells Chappell and
  Company, Houston
• History Matching Volumetric Balancing
• Base and Expected Cases
• Various Service Profiles
• High Degree of Confidence in Reservoir Integrity
  and Performance

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Design Performance Profile
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Engineering Cost

• Detailed Engineering Design and Cost Estimate
  Performed in Fall, 2001 and Updated in 2002
• Estimated Facility Cost Inclusive of Base Gas is
  57.3 million
• Base Gas Assumption 4.5 bcf _at_ 4.00
• Any Base Gas Savings Will Be Passed Along to
  Customers

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Timetable

• All of the Pre-Development Leg Work is Complete
• 6-8 Months of Additional Development Activities
  Followed by 12 Months of Construction
• Begin Injecting Base Gas in Summer, 2005
• Possible Base Gas Injection Still in 2004
• Fully Operational For Winter 2005/2006

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Services

• Traditional Seasonal Single-Cycle
• Hybrid 2.5 Cycles Per Year
• HDMC 4 Cycles Per Year

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Tentative Rates

• Traditional Single Cycle
• 0.97 per Dth per Year Totem Provides Base Gas
• 0.75 per Dth per Year Shipper Provides Base
  Gas
• Hybrid Multi Cycle
• 1.15 per Dth per Year Totem Provides Base Gas
• 0.83 per Dth per Year Shipper Provides Base
  Gas
• HDMC
• 1.85 per Dth per Year Totem Provides Base Gas
• 1.33 per Dth per Year Shipper Provides Base
  Gas

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Open Season

• Binding Open Season Was Concluded in September,
  2003
• Negotiations Continue With Successful Bidders for
  100 of Capacity

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For Further Information

• J. B. Condill
• [phone]
• jbcrog_at_aol.com