Joe Kiely Vice President of Operations, Ports-to-Plains Alliance

1. Progressive 15 Fall Meeting April 22, 2010 Joe Kiely Vice President of Operations, Ports-to-Plains Alliance

2. Ports-to-Plains Alliance It’s about connections …. A pipeline!

3. Nearly half of U.S. oil and gas production Source: U.S. Department of Energy Why Does the Alliance Matter?

4. Primary pipeline corridor for North America’s oil Why Does the Alliance Matter?

5. 7 of America’s top 10 wind states Source: U.S. Department of Energy Why Does the Alliance Matter?

6. America’s agricultural heartland. Source: U.S. Department of Agriculture Why Does the Alliance Matter?

7. Percent Population Change – 2000-2009 Source: U.S. Census Bureau Why Does the Alliance Matter?

8. It’s about a Common Economy … • Energy … • Agriculture … • Trade … • Tourism …

9. It’s about an Energy Economy … Its Jobs!

11. Energy = Jobs • Energy Sector as Jobs Provider • Oil and Gas Industry 9.2 million jobs • Alberta Oil Sands 343,000 new jobs in US – 2011-15 • Electricity Generation 250,000 direct jobs • Ethanol Industry supports 220,000 jobs

12. Energy = Jobs • The American Economy Relies on Affordable, Reliable Energy • More than 3.7 million manufacturing jobs lost since 2007 • High energy prices a major factor • 4,200 trucking companies closed due to high diesel prices between 2Q 2007 and 4Q 2008 • 10 Airlines shut down due to high jet fuel prices in 2008 alone • Over 360,000 jobs lost

13. Energy Jobs along the Ports-to-Plains Corridor PartnershipForEnergy.com

14. A Measure of the Opportunity

15. US Generation Mix (Thru to Nov. 2009)* *From Energy Information Administration

16. Wind & Solar Facts Wind Facts*: • United States wind power generation now totals 35,159 MW and is produced in 35 states • Powers close to 9.7 million American homes. • Capacity grew 39% between 2008 and 2009. • The American Wind Energy Association (AWEA) estimates 38 manufacturing companies were brought online, announced or expanded in the United States in 2009. • The United States ranks 1st in the world in wind power generation above China and Germany for 2009, per the Global Wind Energy Center (GWEC). * Numbers provided by AWEA unless otherwise noted.

17. Wind & Solar Facts Solar Facts*: • United States solar power generation now totals 8,775 MW • Powers close to 1.5 million American homes. • Capacity grew about 10% between 2007 and 2008 * Numbers provided by the Solar Energy Industries Association (SEIA) unless otherwise noted.

18. Utilization Dictates Transmission Rates(HPX) TRANSMISSION RATE $/MWh • How to Improve Transmission Utilization • Geographic Diversity (wind in multiple locations) • Blending wind with solar and other renewables • Use of gas-fired generation for “firming” and meeting load

19. Local Market versus Export Market • Estimated wind energy potential exceeds local needs. • NREL estimate of Ports-to-Plains states: 5 to 9 million MW • US installed generating capacity 2008 (all fuels) 1.1 million MW • Everyone wants to export to either California or southeast • States are trying to be first to market: • Competing with each other for economic development opportunities • Want to change transmission planning philosophy to focus on wind export in addition to reliability • Export scenarios will put tremendous stress on existing transmission built primarily to serve local load. • Electric system stability will limit installed wind generation installation to a fraction of the theoretical capability.

20. What About Those Oil Sands? -- The Opportunity • There are 1.7 trillion barrels of oil in the Canadian Oil Sands • Over half of this potential resides in the Athabasca McMurray Sandstone • Only 20% can be mined – the rest is too deep ٭Ft McMurray

21. Fort McMurray

22. Oil Sands Reclamation: Before and After 2000 2006

24. Energy Development in Alberta • Alberta’s oil sands in context

25. Global Crude Oil Reserves by Country World Oil Reserves Accessible Oil Reserves Includes 170 billion barrels of oil sands reserves State owned or controlled Canada’s Oil Sands 53% Accessible Other Accessible Reserves 47% Other Accessible Reserves Other Accessible Reserves Other Accessible Reserves Source: Oil & Gas Journal Dec. 2008

26. Significant Source of US Supply

27. Bitumen at virgin reservoir conditions Peanut Butter Ketchup Maple Syrup Olive Oil Bitumen under SAGD Cream Typical oil in the ground Water The Challenge: Viscosity 10,000,000 1,000,000 100,000 10,000 Viscosity (cP) 1,000 100 10 1 0 50 100 150 200 250 Temperature (deg C)

28. Oil Sands: In Situ Recovery In Situ Recovery: • 80% of resource • 45% of production • No tailings ponds • No water from the Athabasca River Steam-Assisted Gravity Drainage Cyclic Steam Process

29. Transportation Corridors Slide 29

30. Why Colorado? … It’s about Domestic Trade … Over $10.47 billion

31. Why Colorado? … It’s about North American Trade … Mexico … Exports … Truck …$788m up 32% since 2004 Mexico … Imports … Truck …$694m up 23% since 2004

32. Why Colorado? … It’s about North American Trade … Canada … Exports … Truck …$1.6b up 18% since 2004 Canada … Imports … Truck …$1.1b up 35% since 2004

33. Why Colorado? … Almost 73% of Truck Trade with Mexico goes through PTP Ports of Laredo, Eagle, Pass and Del Rio. The market share of Colorado’s trade with Canada has increased 7.5% since 2004 through PTP Ports of Sweetgrass, Wild Horse, Raymond and Portal.

34. It’s about the rural heartland … • Most communities under 20,000 population • Most communities are a long way from their state capitals. • Most communities have little voice in Washington, D.C.

35. How can we be heard about … • The importance of a national transportation vision • The value of freight corridors • The importance of connecting rural areas to markets

36. How can we be heard about … • The importance of NHS High Priority Corridors connecting to new markets north and south. • The expansion of these corridors • The value of Border Infrastructure to Commerce and Security

37. How can we be heard about … • The need for a pilot project addressing truck permitting, weights and combinations • Opposition to legislation that limits the opportunities for expansion of rural highways • The opportunity for North American energy security

38. How can we be heard about … • All these items through a multi-state caucus!

39. How can we be heard about …

40. Joe Kiely Vice President of Operations P.O. Box 9 Limon, CO 80828 P: 303-586-1787 C: 719-740-2240 joe.kiely@portstoplains.com www.portstoplains.com