Natural Resources Infrastructure Needs

Colorado Oil and Gas Association

Denver, CO

August 9, 2006

A meaningful piece of prose…

• Western protests Columbia’s proposal to revise its gas quality specifications to include a CO2 specification of 1.25%. This proposed specification is overly restrictive and will balkanize the interstate natural gas pipeline grid by creating an island of disparity in a sea of reasonableness.

B. Jeffries

Infrastructure Needs Extend Beyond Natural Gas

• Crude Oil• Natural Gas Liquids• CO2 supply and infrastructure development for

enhanced oil recovery and carbon sequestration• Electricity• Water• Rail• Processing• Treating• Storage

Natural Gas – the past 5 years

WBIGrasslands80 MMcfd

El PasoCIG

50 MMcfd

William’sNorthwest175 MMcfd

El PasoCheyenne

Plains770 MMcfd

MidAmericanKern

1,052 MMcfd

GasInfrastructure Added in Last

5 years

Total of 2,127 Mcfd added in the past 5 yrs

First Year Natural Gas Production, J onah/Pinedale

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Year

Flow

(M

cfd)

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

Pre-1990 Total (Mcfd)

Updated March 6, 2006 (Data accurate through December 1, 2005)

CBM Production, Upper Powder River Drainage

0

50

100

150

200

250

300

350

400

Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06

Time

(Flo

w)

MM

cfd

Updated J une 17, 2006 (Data accurate through March 1, 2006)

Big George Production is Accelerating

Garfield County, Colorado

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Mcf

d

2000 2001 2002 2003 2004 2005

Colorado Oil and Gas Commission

Rockies Express

A good start but not perfect yet!

1.6 bcfd of supply will have very limited access at Cheyenne!

Need for Chicago Interconnectivity

Will Interconnecting parties build or request taps with sufficient meter capacity?

San Juan supply headed north

Crude Oil In The Rockies

Regional Crude Production is Growing in Some States

020,00040,00060,00080,000

100,000120,000140,000160,000

BOPD

2004 2005

Utah

Colorado

Montana

N Dakota

Wyoming

EIA

395 MBOPD 424 MBOPD

Canadian Association of Petroleum Producers (CAPP)

Conversion/Expansion and Grass Roots Crude Projects are Under

Consideration

Proposed Overland Pass Plus Enterprise Mid-American PL Expansion Keep NGL’s

Flowing

Carbon Dioxide Infrastructure

Wyoming Pipeline Authority

Bryan HasslerExecutive Director

303-748-6473bhassler@comcast.net

Or contact Colby Drechsel or Carla Hubbard152 North Durbin Street, Suite 230

Casper, Wyoming 82601Office (307) 237-5009Fax (307) 237-5242

www.wyopipeline.com