Coral Energy / Shell Trading Producer Services Wyoming Pipeline Authority

1. Coral Energy / Shell TradingProducer ServicesWyoming Pipeline Authority October 28, 2003

2. Overview • Coral Energy / Shell Trading is Royal Dutch Shell’s (“RD Shell”) North American natural gas and power marketing affiliate (RD Shell ownership @ 90.8%) • Coral is contractually obligated to purchase RD Shell’s 2.4 Bcfd of North American natural gas production • Coral is headquartered in Houston with offices in San Diego and Calgary • Shell Trading markets 9.5 Bcfd of natural gas and 15 GWs of power • Coral is rated A- by S&P and A1 by Moody’s

3. Overview • Coral’s core competencies are in the aggregation, marketing and price risk management of natural gas • We have developed the infra-structure, expertise and experience in operations and marketing to meet our contractual obligations to RD Shell • We leverage those resources and capabilities to provide a cost-effective market alternative to E&P companies • Including a comprehensive suite of services allowing Producers to focus their resources on E&P activities

4. Background • RD Shell sought to reduce its cost structure and credit risk, maintain high production capacity factors and focus more resources on E&P activities • Through Coral, RD Shell out-sourced its North American natural gas marketing functions: • Coral is contractually obligated to purchase all of RD Shell’s North American gas production at competitive prices • RD Shell realizes substantial cost reductions improving profitability • Credit risk is effectively transferred to and managed by Coral • High production capacity factors are maintained • More resources are available for E&P activities

5. Discussion • Significant infra-structure and resources are required to effectively market natural gas • These marketing efforts require substantial resources that could otherwise be available for E&P activities • We believe the primary goals of a Producer’s marketing efforts are to: • Sell every MMBtu produced • Receive a competitive price • Get paid • As well, the high capacity factor required in producing fields is not well matched to the load profiles of markets

6. Discussion • Without significant investment in storage and transport assets, Producer’s are limited in their ability to shape production to meet market load profiles • Further, Producer’s have substantial credit risk through their marketing efforts or require substantial back-office support to mitigate those risks • As such, and in our opinion, few Producers have sufficient scale and scope to support an effective marketing effort • For these reasons, aggregating production to a financially strong counter party: • Leverages core competencies • Reduces costs • Mitigates credit risk exposure • Increases profitability

7. Producer Services • Why Coral Energy / Shell Trading? • Scale & Scope: Coral markets 9.5 Bcfd in North America • Geographic reach • Infra-structure, experience & capability • Marketing, Asset Management and Price Risk Management are core competencies • Comprehensive Service Offering • Strong balance sheet and credit rating

8. Producer Services • Shell Trading Offers Marketing Services that: • Are comprehensive and flexible • Are cost-effective • Focus on maintaining or increasing production capacity factors • Eliminate credit and non-payment exposure • Lever core competencies • Involve transparent, competitive prices • Facilitate price risk management • Reduce costs, enhancing profitability • Support an increased focus on E&P activity

9. Contacts • Contacts • Laird Dyer (858.320.1536) • Bill Lyons (858.526.2155) • Erin Kenney (858.526.2116)