Entrega Gas Pipeline Project

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Entrega Gas Pipeline Project

• Wyoming Natural Gas Pipeline Authority - August
  24, 2004

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42-inch
36-inch
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Project Description

• 327 miles of new interstate pipeline facilities,
  including 136 miles of 36-inch and 191 miles of
  42-inch pipe
• In Wyoming, approximately 50 miles of 36-inch,
  183 miles of 42-inch
• Runs from Meeker Hub in Rio Blanco County, CO
  through Wamsutter to the Cheyenne Hub near
  Rockport, CO
• Runs through Sweetwater, Carbon, Albany, and
  Laramie Counties in Wyoming
• Future compression includes two stations in
  Wyoming near Wamsutter and Arlington in the I-80
  corridor.
• 22 Main Line Valves with 14 in Wyoming

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Project Description (continued)

• FERC Application capacity request of 1.5 Bcf/day
  (2 phases)
• Phase One approximately 725 MMcf/d (free flow)
• Phase Two incremental 775 MMcf/d (compression)
• Further economic incremental expansion of 500
  MMcf/d Wamsutter to Cheyenne Hub
• Phase One receipts at Meeker Hub and delivery
  points at Wamsutter and Cheyenne Hub
• Design anticipates both receipt and delivery
  capability at Wamsutter
• Future Receipt/Delivery points to be determined
  with potential shippers

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Project Description (continued)

• Entrega intends to be an Open Access Pipeline
• Entrega will offer both firm (FT) and
  interruptible (IT) transportation services
• Estimated Initial Rates are approximately
• Phase One Recourse Rates 0.39 (FLU 0.15)
• Phase Two Recourse Rates 0.22 (FLU 0.90)
• Estimated Project Costs are
• Phase I 575 MM
• Phase II 75 MM

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Milestones Achieved

• Preliminary work began in summer of 2003 to scope
  out the requirements and get a head start on the
  regulatory requirements
• FERC assigned Entrega a pre-filing docket March
  19, 2004
• Open Houses and separate local government
  meetings held on March 30, 2004 to April 6, 2004
  at 4 locations in Wyoming (Cheyenne, Laramie,
  Rawlins and Wamsutter)
• Open season held June 4 to June 25 resulted in
  sufficient commitment to advance the project.
• Draft of application for FERC certificate nearing
  completion in anticipation of August 2004 filing

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Upcoming Milestones

• FERC Draft Environmental Impact Statement is
  issued and comments expected by 1Q, 2005
• Anticipate FERC Certificate for the facilities
  from Meeker to Cheyenne Hub by 2Q, 2005
• Expect to begin construction in summer 2005 with
  target in service dates of 4Q 2005 for phase 1
  and 2Q 2007 for phase 2
• Present plans are to utilize at least four
  construction spreads with approximately 450
  construction and inspection staff per spread
• Construction period expected to be 3-5 months.

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Benefits to Wyoming

• Access to pipeline capacity exiting Wyoming to
  market hub at Cheyenne and major downstream
  markets
• Should support future Rockies export pipeline
  from Cheyenne Hub to be built
• Additional Ad Valorem tax revenue
• New construction jobs and full time jobs
• Equipment and materials purchased from Wyoming
  suppliers
• Minimal environment impact
• Route over 90 adjacent to existing rights of way

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Summary

• The Entrega Gas Pipeline Project is good for
  Wyoming
• Revenue benefits
• Job benefits
• Minimal Environmental impact
• Your support in our applications with FERC, BLM,
  and the local agencies will enhance agency
  understanding of project benefits