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WEI ENVIRONMENTAL COMMITTEE

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WEI ENVIRONMENTAL COMMITTEE

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    1. Brent E. Kitchen Wyoming Pipeline Authority Meeting May 25, 2004

    2. Piceance to Kanda Expansion

    5. Piceance to Kanda Open season from Friday, April 30 until noon MDT on Wednesday, June 2, 2004 Capacity options from 300,000 to 450,000 Dth/d Autumn 2006 anticipated in-service date

    6. Planned Facilities 170 miles of 24-inch pipe Compression between 7,000 to 52,000 HP Depending on suction pressures and requested volumes Open Season results will determine optimal design

    8. Rates

    9. Potential Northern System Receipt Points West of Kanda Any points, including but not limited to Green River and Overthrust Basin production East of Kanda Any points, including but not limited to Desolation Flats and Dripping Rock May require additional pipe and/or compression

    10. Potential Southern System Receipt Points West of Greasewood Any points, including but not limited to Ferron Coal bed Methane area, Uintah and Piceance Basin production East of Greasewood May require additional pipe and/or compression

    12. Potential Delivery Points Kern River Gas Transmission Company Northwest Pipeline Corporation Colorado Interstate Gas Company Southern Star Pipeline Wyoming Interstate Gas TransColorado Gas Transmission Company Overthrust Pipeline Company

    13. Potential Delivery Points Cont’d. Local Distribution Companies Questar Gas Company Public Service Company of Colorado Rocky Mountain Natural Gas Greeley Gas Company Clay Basin Storage Several existing and planned power plants

    14. Advantages to Wyoming Enhances Kanda as hub and pricing point Promotes the production of Wyoming gas for delivery into this new pipeline Encourages the development of new facilities in Wyoming (for example, Questar’s storage projects) Provides access to additional gas supplies for southwest Wyoming gas consumers

    15. Submission of Bids Bids are binding Must include the following: Volume (Dth/d) with desired receipt and delivery point(s) Max reservation rate that shipper will pay Usage, ACA, FGRP, and other applicable charges will be additional Minimum 10-year term Must meet Questar’s economic hurdle rates Must be received by noon MDT on Wed., June 2, 2004

    16. Bid Review Process Bids ranked based on present value calculation (PVC) as follows: (Monthly Reservation Charge) x [1-(1+ i)-n ] = Present Value ( Per Unit ) [ i ] Per Unit Where: i = interest rate per month, i.e., overall rate of return divided by 12 months n = term of the agreement, in months

    17. Review and Notification Process Priority given to bids that optimize capacity and operating efficiency If equal PVC, capacity will be allocated based on date (not time) of bid receipt Bids received on earlier dates will receive priority over bids received on later dates Later bids get any remaining capacity Award determination and notification to bidders by July 15, 2004

    18. Lynn Arnold (801) 324-2941 Brent Kitchen (801) 324-2117 Tom Myrberg (801) 324-2978 Mary Kay Olson (801) 324-5873 Martin Anderson (801) 324-2017 Brad Markus (801) 324-5663 Marketing Team

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