Totem Gas StorageProject

Wyoming Pipeline Authority

March 23, 2004

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 Morgan’s Advantage Pipeline Southern Star’s Western Frontier Pipeline

Highlights (cont’d)

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

Totem Gas StorageRegional Pipelines

Opal Hub

Powder River Basin

Denver

Cheyenne Hub

ColoSprings

To Pacif ic NW

To Midw est

To Midcontinent

SaltLake

ToCalifornia

To Midcontinent

WindRiver

SCHEMATIC OF PIPELINES AROUND TOTEM

New Line 5C is a 1440 psig line and will operate independently of 5A and 5B.Lines 52A and 52B for which Totem already has an interconnect agreement, have a combined

capacity of 900 MMcfd and operate at less than 50% capacity.This capacity does not include the effect of adding an interconnect to CheyennePlains Pipeline.

Interconnects with the Cheyenne Plains Project via CIG and a direct interconnect with PSCOare very real alternatives that should be taken into consideration when consideringcapacity in Totem.

Young/ Ft. Morgan

Totem

Line 52A

Line 52B

New Line 5C

Watkins Compressors

Cheyenne

Colorado Springs

Valley Line Loop

Tristate Pow er Plant

Line 5B

Nixon Pow er Plant

Line 5A

Calpine Pow er Plant

Medicine Bow Lateral

TrailblazerWIC

CIG

PSCO Front Range

Kinder Morgan

Cheyenne Plains

Blue Spruce Plant

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 ROW’s Have Been Obtained

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

Design Performance Profile

0

50

100

150

200

250

300

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Working Gas in Place (MMscf)

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 @ $4.00 Any Base Gas Savings Will Be Passed Along to

Customers

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

Services

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

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

Open Season

Binding Open Season Was Concluded in September, 2003

Negotiations Continue With Successful Bidders for 100% of Capacity

For Further Information

J. B. Condill (303) 680-4725 jbcrog@aol.com