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Rockies Express Pipeline

2. Market Assessment. Production of Rockies gas is expected to increaseThere is insufficient pipeline capacity to export this increasing supplyPotential expansion projects for existing pipelines would deliver gas to low-price markets in the Southwest or Mid-ContinentIncreased LNG deliveries to

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Rockies Express Pipeline

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    1. 1

    2. 2 Market Assessment

    3. 3

    4. 4

    5. 5 Basis Spreads Support New Pipeline

    6. 6 Project Overview Construction of 42 inch or larger, 1350 mile pipeline from Cheyenne Hub to Clarington, Ohio with 2 Bcfd transport capacity Purchase Entrega Pipeline - 330 miles of 36 and 42 inch from Meeker to Wamsutter to Cheyenne. 180 miles of 36 inch pipeline from Opal to Wamsutter Over 20 interconnections with interstate pipelines and multiple supply points Staged FERC Certificates will enable access to mid-continent delivery points in Dec. 2007; access to Tuscola or Lebanon delivery points in Dec. 2008 and access to eastern Ohio, delivery points in July 2009 Final design based on Open Season binding bids Expected rates of about $1 plus fuel of about 2% to 3%

    7. 7 Route follows over 90% of existing pipeline or utility ROW corridors Detailed engineering, environmental, and ROW studies due Nov. 15th Proposing 3 certificate FERC filing process and construction schedule to maintain 4Q07 in-service date to mid-continent Certificate I route follows Kinder´s Trailblazer and Terasen’s Platte Valley pipelines Existing Trailblazer and Platte ROW and project records help accelerate permitting Discussions with FERC yielded positive feedback on staged development Project is in to hold Open Season later in Q405

    8. 8

    9. 9 Significant Developments Kinder & Sempra Joint Development Kinder 2/3 equity and Sempra 1/3 equity Sempra Affiliate committing to 200,000 Dth/d EnCana & Entrega Support 500,000 Dth/d of firm long haul commitment Incorporation of Entrega into the project Wyoming Natural Gas Pipeline Authority Negotiations Exclusivity Agreements with End-Use Markets

    10. 10 WNGPA Provides for 90 period of exclusive negotiations Subjects of negotiations include: WNGPA providing competitive financing for Rockies Express WNGPA facilitating extension of Project to Opal Hub A conditional capacity commitment of up to 200 mmcfd under the proposed Aggregation Services Potential interim financing through 2008 or beyond for the Project’s acquisition and/or construction of assets upstream of Cheyenne Any transportation commitment will be subject to Board approval by January 31, 2006

    11. 11 Aggregation Services Would allow for the WNGPA to serve as Aggregator: Gas-in-kind Small producers WNGPA would not need to hold title to gas “Pool Members” could change over time Relationship of Aggregator and Pool Members is a private contractual relationship (not subject to FERC review or jurisdiction) Provide credit assurances for Pool Members

    12. 12 Next Steps Negotiate and execute shipper precedent agreements Start NEPA Pre-filing in late October, 2005 Conduct binding open season in Nov. – Dec, 2005 - Long haul bids coordinated with completion of construction phases are conforming Shipper Board approval required by Jan. 31, 2006 A minimum of 1,500,000 Dth/d is needed Determine economic viability by February, 2006

    13. 13 Contact Information Kinder Morgan Jeff Rawls Vice President Business Development West Region Gas Pipelines 303-914-4903 jeff_rawls@kindermorgan.com Sempra Pipelines & Storage Ryan O’Neal Vice President 619-696-4585 roneal@SempraPipelines.com

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