Bryan Hassler, Executive Director Society of Petroleum Engineers

1. Bryan Hassler, Executive Director Society of Petroleum Engineers January 21, 2004 Rock Springs, WY

2. The Problems Facing America…………. • High Prices • Declining Supplies in Traditional Basins • Lack of Access to New and Growing Basins

3. High Prices

5. Declining Supplies

6. Lack of Access

7. What Can Be Done???????????

8. Growth In Production

9. JonahUnrestricted Development

10. Growth In Production – Colorado (Garfield County) • 1999 154,000 Mcfd • 2000 190,000 Mcfd • 2001 241,000 Mcfd • 2002 315,000 Mcfd • March ’03 365,000 Mcfd • Going to? 1 Bcfd + Major Operators include: EnCana, Williams, Calpine, Mesa, Tom Brown, Exxon/Mobil Data Source: Colorado Oil and Gas Conservation Commission

11. Producer Critical Success Factors • Access to Federal Lands • Gas Price • Timing of Regulatory Approvals • Gathering System Capacities and Pressures • Transportation Export Capacity • Capital Efficiency • Public Acceptance

12. Pipeline Projects In-service or Full Market Support • Kern River Pipeline Expansion • Williston Basin Grasslands Pipeline • El Paso Cheyenne Plains Pipeline

14. Kern River Expansion • California Action Project • 135,00 Dth/d July 1, 2001 • 53,900 hp of compression • $81 million • Kern River 2002 Expansion • Additional 10,500 Dth/d May 1, 2002 • 21,000 hp of compression (6,000 new) • $31.4 million • Kern River 2003 Expansion • 906,626 Dth/d May 1, 2003 • 716 miles of 36 and 42 inch pipe • 160,000 hp of compression • $1.3 billion

15. WBI Grasslands Pipeline • 80,000 Dth/d Nov 1, 2003 • 247 miles of 16 inch pipe • 5,380 hp of compression • Expansion to 200 MMcfd

16. Cheyenne Plains Pipeline MT • Capital cost: $336.5 MM • Pipe: • 380 miles of 30" • 7 miles of laterals • Compression: 33,155 hp • Capacity: 560 MDth/d • Expandable to 1,000 MDth/d • In-service: August 2005 WY SD Cheyenne Plains Cheyenne NE KS Greensburg UT CO El Paso NGPL CIG PEPLWIC WNGNNG TrailblazerANR MCMC OK AZ NM

17. Pipeline Export Projects Proposed • Kinder Morgan Advantage • Northern Border Bison Project • Enbridge Chicago Project • Southern Star Western Frontier Project • El Paso Ruby Project • Kinder Morgan TransColorado Expansion.

18. Intraregional Projects • Questar Kern Expansion • Northwest Rockies Expansion • El Paso Front Range Expansions • Xcel Front Range Projects • Kinder Huntsman Storage Project • Totem Gas Storage Project • Wyoming Interstate/Overthrust Backhaul Projects • Jonah/Opal/Powder/Wind River Gathering/Processing Expansions

19. Cost of Limited Infrastructure to Wyoming • $130 + million in Federal/State royalties and severance taxes – 2002. • $1 million per day in March 2003. • Stalled investment in development of mineral resources. • Limited ability to predict revenues with certainty.

20. The Wyoming Pipeline Authority Will • Promote all industry sponsored and supported projects. • Proactively promote infrastructure development within the state and the Rocky Mountain Region. • Promote efficient utilization of existing infrastructure in a cost effective manner. • Promote development of Wyoming’s mineral resource base in a systematic, streamlined and environmentally responsible manner. • Utilize its bonding authority to build or cause to be built infrastructure projects that will enhance state netbacks and promote development of a resource base that is in the nation’s best interests.

21. Thanks for the opportunity to speak with you. Bryan Hassler President - United Energy Partners, LLC & Interim Executive Director - Wyoming Natural Gas Pipeline Authority 1625 17th Street, 3rd Floor Denver, CO 80202 Ph 303-357-7314 Cell 303-748-6473 Fax 303-948-1428 Email uep1@comcast.net Wyoming Pipeline Authority Presentations Can be Accessed via the Wyoming Oil & Gas Conservation Commission Website at: www.wogcc.state.wy.us