Doug Foshee President and Chief Executive Officer

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Doug Foshee President and Chief Executive Officer Powered By Docstoc
					Wyoming Pipeline
Authority Meeting
     Steve Newell
            CIG Marketing
 El Paso Western Pipelines
Colorado Springs, Colorado




          Casper, Wyoming
          February 20, 2007
Cautionary Statement Regarding Forward-
looking Statements
This presentation includes forward-looking statements and projections, made in reliance on the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable
effort to ensure that the information and assumptions on which these statements and projections are based are
current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially
from the projections, anticipated results or other expectations expressed in this presentation, including, without
limitation, our ability to successfully contract, build and operate the pipeline projects described in this
presentation; changes in supply of natural gas; general economic and weather conditions in geographic regions
or markets served by El Paso Corporation and its affiliates, or where operations of the company and its
affiliates are located; the uncertainties associated with governmental regulation; competition, and other factors
described in the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company
makes these statements and projections in good faith, neither the company nor its management can guarantee
that anticipated future results will be achieved. Reference must be made to those filings for additional important
factors that may affect actual results. The company assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking statements made by the company,
whether as a result of new information, future events, or otherwise.




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Agenda

■ High Plains Pipeline


■ High Plains Storage


■ Medicine Bow Lateral Expansion




                                   3
                     W Y O M I N G
                                                                CIG, WIC, and
                                                               Cheyenne Plains

              CIG



                    WIC                  Cheyenne




                            Denver



U T A H
                            Colorado
                                                               Cheyenne
                            Springs                               Plains
                                Pueblo

                                                                           Greensburg

          C O L O R A D O

          N E W   M E X I C O
                                                               T E X A S



                                                    Amarillo
Steady Demand Growth in
Colorado (including Front Range)
                                                   Compound
                                                   Annual
                                                   Growth Rate
                                                   2005 – 2015
                              Bcf/d        Bcf/d   1.4%
                    Bcf/d
                                                   1.4%

                                                   0.4%
           Denver
                                                   1.9%

                                                   2.0%




                             CO Total
                              ~1.4%
                                   Bcf/d
                            2005    1.03
                            2010    1.14
                            2015    1.18
                                                                 5
High Plains Pipeline Project
■ 164 miles of natural gas pipeline
   • 79 miles of 30”
    • 85 miles of 24”
■ 875 MDth/d
    • Major receipt points
       ■ Cheyenne Hub
       ■ Young Storage
         ■ High Plains Storage
    • Major delivery points
       ■ Hudson
       ■ Blue Spruce
       ■ Tri-Town
         ■ East Denver
■ Rate
    • $3.95/Dth incremental recourse reservation rate
    • 0.15% FL&U


                                                        6
High Plains
Storage



              7
High Plains Pipeline Timing
                 April (est.)
                 FERC Filing                                  Fall
 January 12                                                   Anticipated
 Open Season                                                  In-Service
  Commenced




                      2007                           2008


                                            February (est.)
                                            FERC Approval
   February 12                              to Construct
   Open Season
         Ended

                         ■ Open Season results are pending


                                                                            8
High Plains Storage Project
■ Storage description
   • Depleted gas reservoir (Totem Field)
   • 10.7 Bcf gas in place
   • 7 Bcf of working gas
   • 3.7 Bcf of base gas
   • 200 MMcf/d maximum withdrawal rate
   • 100 MMcf/d maximum injection rate
■ Rates
   • $4.6392/Dth monthly reservation based on MDWQ
   • $0.1325/Dth monthly storage capacity charge based on MAC
   • $0.0627/Dth injection rate
   • $0.0627/Dth withdrawal rate
   • 2.6% storage fuel



                                                                9
High Plains Storage Project Timing
                August (est.)
                                                            Spring
                FERC Filing
January 16                                                  Anticipated
Open Season                                                 In-Service
Commenced




              2007                  2008                     2009


                                   May (est.)
                                   FERC Approval
      February 16                  to Construct
      Open Season
      Ended

                        ■ Open Season results are pending



                                                                          10
                  WIC Medicine Bow Lateral
                                  Open Season
                              Roland Harris
                              Business Development




BUSINESS DEVELOPMENT
                     W Y O M I N G
                                                                CIG, WIC, and
                                                               Cheyenne Plains

              CIG



                    WIC                  Cheyenne




                            Denver



U T A H
                            Colorado
                                                               Cheyenne
                            Springs                               Plains
                                Pueblo

                                                                           Greensburg

          C O L O R A D O

          N E W   M E X I C O
                                                               T E X A S



                                                    Amarillo
                                   POWDER RIVER
WIC Medicine Bow                      BASIN       Existing Douglas C.S.
Lateral Expansion                                 21,510 HP

     Project




                        New
                    Compression
                      Facilities




     CIG
                                                                          WIC
                                                                          Medicine Bow




                                                                           Cheyenne C.S.
Background

■ Existing Medicine Bow fully contracted at 1,055 MDth/d
■ Utilization has ramped from 700/d – 900/d in 2006
■ Increasing Powder River production requires an expansion
   • Compression addition based on Open Season interest
■ Douglas supply area receipts
   • Thunder Creek, Fort Union, MIGC, KMI
■ Cheyenne market area deliveries
   • CIG, WIC mainline, PSCo, Cheyenne Plains, Trailblazer
   • REX deliveries with upcoming hub service




                                                             14
Timing
■ Open Season is effective February 15, 2007 to March 9, 2007
■ Turnback completed by March 2, 2007
   • Concurrent Open Season for “seasonal capacity”
   • Assess need for expansion
■ WIC decision anticipated by March 31, 2007
■ In-service June 2008
■ See Open Season at:
   • http://cigco.com
   • Informational Postings
   • Wyoming Interstate Company
   • Other
   • Informational Lookup



                                                                15
Terms and Conditions
■ Rate is $0.1434/Dth (current maximum recourse rate)
■ Term is 7 years
   • Existing shippers may extend contract
■ Minimum volume requirement for expansions is 160 MDth/d
■ WIC Medicine Bow Lateral General Terms & Conditions
   • 1,015 psig at Douglas
   • 950 Btu
   • WIC FL&U of 0.56%




                                                            16
Contacts
High Plains Pipeline/Storage   Medicine Bow Lateral Expansion
Steve Newell                   Tom Dobson
719-520-4341                   719-520-4606
Steve.Newell@elpaso.com        Tom.Dobson@elpaso.com


Greg Ruben                     Roland Harris
719-520-4870                   719-520-4380
Gregory.Ruben@elpaso.com       Roland.Harris@elpaso.com


                               Laine Lobban
                               719-520-4344
                               Laine.Lobban@elpaso.com


                               Ed Miller
                               719-520-4305
                               Edward.Miller@elpaso.com



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