British Columbia Midstream

1. British Columbia Midstream Addressing Facility Needs to Meet Production Growth May 9, 2008 Calgary, Alberta Bradley Lock – VP North Central Business Unit

2. Forward Looking Information This presentation contains forward-looking information that involve known and unknown risks and uncertainties, many of which are beyond Keyera’s control. The forward-looking information is based on management’s current expectations and assumptions relating to Keyera’s business and the environment in which it operates. As the results or events predicted or implied in the forward-looking information depend upon future events, actual results or events may differ materially from those predicted. Some of the factors which could cause actual results or events to differ materially include the ability of Keyera to successfully implement strategic initiatives, whether such initiatives yield the expected benefits, operating and other costs, future operating results and the components of those results, fluctuations in the demand for natural gas, NGLs and crude oil, the activities of producers, competitors and others, the weather, overall economic conditions and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that they will have the expected consequences for or effects on Keyera. For additional information on these and other factors, see Keyera’s Annual Information Form and other public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

3. Overview # • Introduction • British Columbia Drilling Statistics and Facility Capacity • Observations & Opportunities • Caribou Gas Plant – A Possible Model to Address Gaps • Future Development and the Role of; • Producers • Midstreamers • Regulators • Risk Sharing # # # How Can Processing Infrastructure Keep Up With Production Growth?

4. Keyera Energy # • Trades on TSX as Keyera Facilities Income Fund (KEY.UN) • One of the largest independent sour gas processors in Canada • Based in Calgary, Alberta and have operations in B.C., Alberta, Saskatchewan and the U.S. • Enterprise value of approximately $1.5 billion # # # Keyera Provides Customer–Focused Energy Services to Producers

5. Rich History of Legacy Assets and Growth • December 1998: Business created from Gulf legacy assets (Gulf/KeySpan 50/50 partnership) • October 2000: KeySpan Corp acquired remaining 50% interest • May 2003: KeySpan Facilities Income Fund IPO • May 2004: Acquired EnerPro assets from Chevron • December 2004: Purchased remaining KeySpan Corp. interest • February 2005: Name changed to Keyera Facilities Income Fund History has Created Significant Competitive Advantage

6. Keyera’s Integrated Business Lines # NGL Marketing& Crude Oil Midstream Gathering & Processing NGL Infrastructure End-useCustomers Gathering & Compression Raw GasProcessing Terminalling NGL Processing Propane NGL Mix Butane Condensate Sales Gas NGL Storage • 16 gas processing plants • 1.8 bcf per day gross capacity • 2,600 km of gathering pipelines • 4 NGL processing plants • 65,000b/d net processing capacity • 8.9 million bbls gross storage capacity • 12 rail and truck terminals • NGL sales ~50,000 barrels per day • Fleet of 600 railcars • Marketing & logistics expertise • 5 crude oil midstream facilities Creating Value All Along the Value Chain

7. Alberta Caribou (BC) Chinchaga Worsley Greenstreet (Sask.) Keyera/DowFt. Sask. Paddle River Tomahawk Bigoray Edmonton Pembina North Rimbey Terminal Brazeau North West Pembina Rimbey Pipeline Brazeau River Rimbey Nordegg River Gilby Medicine River Strachan Calgary Gathering & Processing Plants NGL Infrastructure Facilities 5th Meridian (W5M) Keyera’s Natural Gas Processing Assets • 16 natural gas processing plants • 1.8 bcf/d gross processing capacity (1.4 bcf/d net) • 90% of capacity able to extract NGLs • 95% of capacity able to process sour gas • 2,600 km of raw gas gathering lines • 65 mmcf/d gross sour processing capacity at Caribou gas plant in B.C. Track Record of Safe Reliable Plant Operations

8. British Columbia Geology Geology Characterized By Gas Prone Multizone Structures

9. British Columbia Drilling History source: Canadian Association of Petroleum Producers Gas Drilling Has Increased: Target Depth has Remained Flat

10. British Columbia Gas Production History source: Canadian Association of Petroleum Producers Less Gas Per Well With More Wells (and More Producers)

11. British Columbia Processing Capacity source: Canada Gas Plant Directory Processing Historically Dominated by a Few Players – Limited Competition

12. British Columbia Processing Capacity source: Canada Gas Plant Directory Sulphur Capacity Dominated by a Few Plants

13. Sales Gas Pipeline InfrastructureBritish Columbia vs. Alberta B.C. Immature From a Sales Pipeline Infrastructure Perspective

14. British Columbia Processing Capacity Significant Investment In Facilities Will Be Required To Meet Demand

15. Observations • British Columbia processing infrastructure is constrained • Producers are looking for options which may include taking gas out of B.C. for processing • Producers are promoting competition to maximize netbacks • Newer wells typically at a lower production rate than historical wells • More wells (and capital) required to produce reserves • More companies exploring in the same areas • More wells required to justify new processing facilities • Significant potential exists for deeper drilling around existing infrastructure • Deeper wells can contain more liquids and more sulphur, which may add additional constraints to facilities • Growth in upstream NGL business in B.C. presents a new opportunity Midstream Companies - A Logical Choice to Develop Infrastructure

16. Caribou Gas Plant – A Case Study • Caribou Gas Plant commissioned in 1997 by Novagas Clearinghouse • 40 mmscfd capacity • Serviced “Anadarko” Jedney Field Fort Nelson • Keyera purchased in 2004 at which time it was producing < 20 mmscfd. Caribou Gas Plant Fort St. John • Geographically Isolated B.C. Great Geology But In Need of a Vision

17. Caribou Area – July 1 2004 # • One customer, one field, one pipeline • Growth constrained by Sikanni and Buckinghorse Rivers # # # # Good Facility But Limited Capture Area

18. Caribou Area – Winter 2004/05 CNRL (Anadarko) Buckinghorse Crossing # • “Chunnel” pipeline opened a new production area • Gas rates increased • Plant Capture Area Expanded • Pipeline Triggers Additional Drilling # # # Picture courtesy of Nickles New Technology Magazine – December 2004 – pg. 2 # First Crossing of the Buckinghorse River Opened The Doors

19. Caribou Area – Winter 2005/06Caribou North Pipeline & Plant Expansion # • Second Buckinghourse crossing and 50 km pipeline to gather new and standing gas from multiple producers • Plant Expansion increased capacity to 65 mmscfd # # # # True Midstream Growth by Coordinating Multiple Producers and Zones

20. Caribou Area – Winter 2006/07Trutch Creek Extension # • Partnered with a producer to extend gathering system north to capture additional drilling # # # # Continued Infrastructure Expansion to Align With Producer’s Drilling Activity

21. Caribou Area – Q4 2007Bougie Asset Acquisition # • Assets consisted of plant site, gathering pipelines lines, roads and wellbores for future acid gas disposal # # # # Vision For Future Northern Plant – Interconnected to Caribou

22. Caribou Area – Winter 2007 / 2008 Trutch Bougie Pipeline # • Northern extension opens up 62,000 hectares to processing capacity • Commissioned in April 08 • Initial rates limited by plant capacity # # # # Pipeline Opens Up Significant Drilling Opportunities

23. Caribou Area – Winter 2007 / 2008 ProEx Caribou Pipeline # • Producer owned / installed pipeline • Third crossing of Buckinghorse River • Commissioned in April 2008 with significant new volumes # # # # Constructed by Producer to Manage Near Term Risk

24. Caribou Area – Future Development # • Multiple additional pipeline development scenarios possible • Detailed engineering underway for a plant expansion at Caribou • Future new plant at Bougie if volumes dictate. # # # # Key to Success: Be In Step With Producer Development Plans

25. Responsibilities inGrowing Infrastructure • Midstreamer • Stay engaged with producer activities and plan infrastructure in parallel • Provide mechanism to share common infrastructure between producers • Be willing to share in development risk • Be open to competition • Producer • Focus on things you do best • Openly share development ideas • Recognize that midstream facilities must benefit all producers • Share upside benefit along with downside risk • Regulator • Encourage consolidation of production to common facilities • Share in risk of infrastructure development • Listen and respond to producer and midstreamer challenges Joint Effort Can Meet Everyone’s Needs

26. Risk Sharing as a Midstreamer Speculation “If I build it they will come” Take or Pay Commitment Drilling Commitment Area Dedication Volume Guaranteed Return on “As Spent” Capital Guaranteed Fee on Detailed Engineering Guaranteed Fee on Preliminary Engineering Sharing of Cost Overruns Cost Low Risk High Risk No Timing Commitments Cost Sharing of Long Delivery Equipment Completion Penalty/Reward Timing Flow Through OPEX Fees Share of Products Pased Fees Fixed Fees Commodity Prices Higher Risk Requires Higher Revenue Potential

27. Conclusions # • Significant growth in British Columbia gas volume is anticipated • Significant infrastructure investment needed to meet production capability • Focusing on additional value add from gas processing (LPG’s, Sulphur, Cogeneration) • Most effective model is if Producer, Midstreamer, and Regulator all share in the risk and the revenue potential # # # # Keyera Will Continue to Create Long Term Growth Opportunities in B.C.

28. Questions # Keyera Facilities Income Fund 600, 144 – 4th Avenue S.W. Calgary, Alberta T2P 3N4 www.keyera.com Contact: Bradley W. Lock (403) 205-7685 brad_lock@keyera.com # # # #