Ruby Pipeline

1
Ruby Pipeline
Ed Miller EPWP Dan Fitzgerald PGE

• Wyoming Pipeline Authority
• January 15, 2008

2
El Paso Corporation Overview

• El Paso Corporation provides natural gas and
  related energy products in a safe, efficient,
  dependable manner. We own North Americas largest
  natural gas pipeline system and are one of North
  Americas largest independent natural gas
  producers. We are organized around regulated and
  non-regulated businesses.

3
El Paso Pipeline System
TennesseeGas Pipeline
Wyoming Interstate
ColoradoInterstate Gas
Cheyenne Plains Pipeline
MojavePipeline
SouthernNatural Gas
Elba IslandLNG
El PasoNatural Gas
Mexico Ventures
Florida GasTransmission (50)

• 19 of total U.S. interstate pipeline mileage
• 23 Bcf/d capacity (16 of total U.S.)
• 16 Bcf/d throughput (28 of gas delivered to U.S.
  consumers)
• Best market connection
• Best supply access
• Leading pipeline integrity program

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Ruby Pipeline Map
O R E G O N
I D A H O
GTN
Malin
Ruby Pipeline Opal to Malin
W Y O M I N G
PGE
CIG
Opal Hub
Tuscarora
WIC
C A L I F .
Cheyenne
Paiute
Cheyenne Plains
U T A H
Uinta Basin
N E V A D A
Piceance Basin
Kern River
C O L O R A D O
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Ruby Capacity and Facilities

• Design and rates are based upon 1.2 Bcf/d of
  capacity
• 680 miles from Opal to Malin
• 42, 1,440 psig pipe design
• Most cost effective design taking fuel and
  expansion opportunities into consideration
• Compressor stations
• Opal 45,400 HP (site rating)
• Midpoint 18,200 HP (site rating)
• Fuel from Opal 0.9
• Four delivery point interconnects and five
  receipt point interconnects
• Expandable to 2 Bcf/d with compression

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Ruby Highlights to Date

• 1.2 Bcf/d pipeline from Opal to Malin
• Ownership structure
• El Paso Western Pipelines
• PGE Corporation
• Bear Energy
• During past 5 months, Ruby Project has been
  presented to most Rockies producers and some
  western markets under Confidentiality Agreements
• Ruby filed an application with the BLM in
  November to construct a pipeline between Opal and
  Malin
• Negotiations with pipe mills and contractors have
  been ongoing for over 6 months
• Estimate has been finalized during this process
• Approximately 50 of firm capacity has been
  committed
• Ruby requires firm capacity commitments of 1.2
  Bcf/d to be constructed

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Rockies versus Western CanadaLong-Term
Production Trends

• Canadian Peak
• 2001 Peak
• - 17 Bcfd

El Paso High Case
Best fit of Current Trend - 2033 Peak - 14 Bcfd
Production
El Paso Base Case
Best Fit Curves Assumes - Gaussian Curve - 320
EUR - Few environmental constraints
El Paso Base case suggest 9,650 Bcfd of export
capacity needed (currently 6,200 in 2007) to meet
85 LF requirement El Paso High case suggest
12,000 Bcfd of export capacity needed (currently
6,200 in 2007) to meet 85 LF requirement
8
Rocky Mountain Production by Basin
(Volumes are Wellhead Measured in MMcfd)
1990-2005 Wellhead total data from IHS
database 2006 Estimate 2007-2015 El Paso
forecast
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Projected Gas Flowswith Ruby
Bcf/d
5.75 fuel
AECO
Total Westbound pipeline capacity 2.6 Bcf/d
Total Eastbound pipeline capacity 12 Bcf/d
3.28 fuel
4.8 to 5.3 fuel
NE
Chicago
NWP
Malin (GTN)
1.68 fuel
1.82 fuel
1.3 fuel
ROX
Ruby
ROX Basis Improvement w/Ruby 2012
0.50-0.60 2015 1.50 - 1.75
0.9 fuel
NORTHERN CALIFORNIA
2.98 fuel
Kern
TC
1.3 fuel
2.87 fuel
San Juan
1 fuel
2012 Northern CA Economic Dispatch
2.87 fuel
Ruby gas will be first through the meter at Malin
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Ruby Proposed Next Steps
February-March Binding Open Season
October 2008 State Regulatory Approvals
April-Oct. 2008
Feb./Mar. 2008
Jan. 2008
May 2008 Transporter Board Approval
January Ruby Packages Customer Follow-Up
February El Paso Upstream Capacity Open Season
April 2008 Shipper Board Approvals
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Ruby Schedule Highlights
Preliminary route work completed
January FERC Prefiling
March 2011 In-Service
July-November Route Surveys and Mapping
October Pipe Commitment
July Commence Construction
Filed route with BLM
2011
2010
2009
2008
2007
April Receive Certificate
May Formal Customer Discussions Commence
January File FERC Certificate Application
March Pipe Option
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Market Overview
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U.S. West CoastDistinct Gas Markets
Supplied primarily from two regions 1. Western
Canadian Sedimentary Basin 2. Western Domestic
Basins (Rockies, San Juan and Permian)

• Pacific Northwest 600 Bcf/yr

• Northern California 835 Bcf/yr
• Northern Nevada 65 Bcf/yr

• Southern California 965 Bcf/yr

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Malin Takeaway
BRITISH COLUMBIA
Sumas

• 2.2 Bcf/d firm takeaway capacity plus
  displacement on GTN at Malin
• Access to west coast market
• Northern/Central California via Pacific Gas and
  Electric Company
• Northern Nevada via Tuscarora Gas Transmission
• Pacific Northwest via GTN and indirectly to
  Williams Northwest Pipeline and Avista Utilities
• Southern California via deliveries off PGE
  system
• Access to 82 Bcf of underground storage
• PGE (CA) 42 Bcf
• Wild Goose (CA) 24 Bcf
• Lodi (CA) 16 Bcf

WASHINGTON
Northwest Pipeline
Seattle
Jackson Prairie
Mist
Portland
GTN
IDAHO
OREGON
Malin
Ruby
Tuscarora Gas Transmission
CALIFORNIA
PGE Area of Detail
NEVADA
PGE
Wild Goose
Line 400
Line 401
Pleasant Creek
Lodi
San Francisco
Los Medanos
McDonald Island
Line 401
Line 300
Currently being expanded
Line 2
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Northern/Central California Market2006 Demand

• 2006 annual gas demand of 835 Bcf
• Annual growth forecasted at 1.3 through 2025
• Results in incremental requirement of 67 Bcf of
  annual gas demand by 2012
• 2006 peak day demand was 3.5 Bcf (2007 peak day
  of 3.9 Bcf)
• PGE, Wild Goose and Lodi storage fields serve
  peak day demands
• Two strong gas demand periods
• Winter Large residential demand
• Summer Large gas-fired generation load and
  storage injections

4.0
3.5
3.0
Bcf/day
2.5
2.0
1.5
Feb
Mar
Apr
Jun
Jan
May
Jul
Aug
Sep
Oct
Dec
Nov
Sources 2006 California Gas Report and PGE CGT
Pipe Ranger
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Northern Nevada Market2006 Demand

• Annual gas demand of 64 Bcf
• Annual growth forecasted at 4.0 through 2016
• Results in incremental requirement of 17 Bcf of
  annual gas demand by 2012
• Seasonal demand
• 2006 Peak day demand was 0.32 Bcf
• Lovelock LNG storage (1.0 Bcf) located near Reno,
  NV serve peak day demands
• Ruby interconnects with both Paiute (near
  Lovelock) and Tuscarora (at Malin)

0.35
Seasonal Market with a Winter Peak
0.30
0.25
0.20
Bcf/day
0.15
0.10
0.05
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Pipelines in Northern Nevada

• Northern Nevada is served via two pipelines
  (Tuscarora and Paiute)
• Paiute Pipeline
• Largest customers SWG, Sierra Pacific
• 96 of transport contracts
• 155 MDth/d receipt capacity from NWPL
• 75 MMcf/d sources from Canadian supply
• NWPL contracts expire by 2009
• System operates at an average load factor of 71
• Tuscarora Gas Transmission
• Largest customers Sierra Pacific, SWG, Barrick
  Gold
• Represent 96 of transport
• Certificate issued 7/24/07 for an expansion of 40
  MDth/d that will serve the Tracy Power Plant (514
  MW)
• 22.5-year contract with Sierra Pacific Power (40
  MDth) upstream of Malin
• SWG and Barrick do not hold capacity on upstream
  pipe

Northwest Pipeline
GTN
IDAHO
OREGON
Malin
RUBY
PGE
0.17 Bcf/d
Tuscarora
UTAH
0.2 Bcf/d
Paiute
CALIFORNIA
NEVADA
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Pacific Northwest (PNW) Market2006 Demand
Sumas
BRITISH COLUMBIA
Kingsgate
WASHINGTON
Northwest Pipeline
3.5
3.0
Jackson Prairie
2.5
MIST
IDAHO
Portland
2.0
GTN
NWN
Bcf/day
OREGON
1.5
1.0
Malin
0.5
NEVADA

• Annual gas demand of 600 Bcf
• Annual growth forecasted at 2.1 through 2012
• Results in incremental requirement of 80 Bcf of
  annual gas demand by 2012
• 2006 peak day demand was 2.9 Bcf
• Jackson Prairie, MIST and Clay Basin storage
  fields serve peak day demands
• Gas-fired power generation load varies depending
  on hydro power availability
• Demand is more seasonal

Sources Northwest Gas Association 2006 Outlook
and Northwest Pipeline and GTN Scheduled Volumes
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Contacts
El Paso Western Pipelines
PGE

• Ed Miller
• Business Development
• 719.520.4305
• Edward.Miller_at_elpaso.com
• Roland Harris
• Business Development
• 719.520.4380
• Roland.Harris_at_elpaso.com
• Russ Council
• Engineering
• 719.520.4865
• Russ.Council_at_elpaso.com
• Jennifer Webster
• Government Affairs
• 719.520.4327
• Jennifer.Webster_at_elpaso.com

• Dan Fitzgerald
• 415.267.7041
• Daniel.Fitzgerald_at_pcgpipeline.com
• Jeff Rawls
• 713.236.3380
• JRawls_at_bear.com

Bear Energy
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Ruby Pipeline
Ed Miller EPWP Dan Fitzgerald PGE

• Wyoming Pipeline Authority
• January 15, 2008