Bryan Hassler, Executive Director

1
Bryan Hassler, Executive Director Western
Energy Institute Domestic Supply Perspectives
October 23, 2003 Las Vegas, NV
2
The Sky is Falling
3
The Problems Facing North America.

• High Prices
• Declining Supplies in Traditional Basins
• Lack of Access to New and Growing Basins

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High Prices NYMEX Last Day Settle
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Declining Supplies..
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Anadarko Basin and Hugoton Embayment
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Thomas Driscoll Lehman Brothers

• .LNG wont fill supply gap until at least
  2006-2008 time frame.
• .available gas supply will drop by 5 this
  year..due to an expected decline in domestic
  production of 2 and a decline in Canadian
  imports of 10.

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Lack of Access
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What Can Be Done??????????????
10
Invent a Better Chicken???????
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Look to Growing Supply Areas
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Green River Basin
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Southwest Wyoming Plant Output (MMcf/day)

• 1998 807
• 1999 836
• 2000 911
• 2001 986
• 2002 1,117
• 2003 (Mar) 1,269 MMcfd
• Average daily throughput Opal/Granger/Blacks Fork
  Plants
• Data Source WOGCC

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Powder River Basin Production
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Powder River Basin CBM Output (MMcfd)

• 1998 82
• 1999 156
• 2000 403
• 2001 673
• 2002 848
• 2003 (Mar) 905 MMcfd
• Data Source - WOGCC

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Other Wyoming Areas of Production Growth

• Wamsutter/Echo Springs 346 MMcfd
• Lost Cabin/Madden Deep 190 MMcfd
• Note Lost Cabin Shut-in for much of 2003 due to
  operational problems.

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Growth In Production Colorado (Garfield County)

• 1999 154,000 Mcfd
• 2000 190,000 Mcfd
• 2001 241,000 Mcfd
• 2002 315,000 Mcfd
• March 03 365,000 Mcfd
• Going to? 1 Bcfd
• Major Operators include EnCana, Williams,
  Calpine, Mesa, Tom Brown, Exxon/Mobil
• Data Source Colorado Oil and Gas Conservation
  Commission

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Does The West Have Supply Issues?
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Producer Critical Success Factors

• Access to Federal Lands
• Gas Price
• Timing of Regulatory Approvals
• Gathering System Capacities and Pressures
• Transportation Export Capacity
• Capital Efficiency
• Public Acceptance

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Pipeline Projects In-service or Full Market
Support

• Kern River Pipeline Expansion
• Williston Basin Grasslands Pipeline
• El Paso Cheyenne Plains Pipeline

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Kern River Expansion

• California Action Project
• 135,00 Dth/d July 1, 2001
• 53,900 hp of compression
• 81 million
• Kern River 2002 Expansion
• Additional 10,500 Dth/d May 1, 2002
• 21,000 hp of compression (6,000 new)
• 31.4 million
• Kern River 2003 Expansion
• 906,626 Dth/d May 1, 2003
• 716 miles of 36 and 42 inch pipe
• 160,000 hp of compression
• 1.3 billion

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WBI Grasslands Pipeline

• 80,000 Dth/d Nov 1, 2003
• 247 miles of 16 inch pipe
• 5,380 hp of compression
• Expansion to 200 MMcfd

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Cheyenne Plains Pipeline
MT

• Capital cost 336.5 MM
• Pipe
• 380 miles of 30"
• 7 miles of laterals
• Compression 33,155 hp
• Capacity 560 MDth/d
• Expandable to 1,000 MDth/d
• In-service August 2005

WY
SD
Cheyenne Plains
Cheyenne
NE
KS
Greensburg
CO
UT
El Paso NGPL CIG PEPLWIC WNGNNG TrailblazerANR
MCMC
OK
AZ
NM
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Everybody Likes Rockies Supplies.
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Pipeline Export Projects Proposed

• Kinder Morgan Advantage
• Northern Border Bison Project
• Enbridge Chicago Project
• Southern Star Western Frontier Project
• El Paso Ruby Project
• Kinder Morgan TransColorado Expansion.

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Intraregional Projects

• Questar Kern Expansion
• Northwest Rockies Expansion
• El Paso Front Range Expansions
• Xcel Front Range Projects
• Kinder Huntsman Storage Project
• Totem Gas Storage Project
• Wyoming Interstate/Overthrust Backhaul Projects
• Jonah/Opal/Powder/Wind River Gathering/Processing
  Expansions

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Cost of Limited Infrastructure to Wyoming

• 130 million in Federal/State royalties and
  severance taxes 2002.
• 1 million per day in March 2003.
• Stalled investment in development of mineral
  resources.
• Limited ability to predict revenues with
  certainty.

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Thanks for the opportunity to speak with you.

• Bryan Hassler
• President - United Energy Partners, LLC
• Interim Executive Director - Wyoming Natural
  Gas Pipeline Authority
• 1625 17th Street, 3rd Floor
• Denver, CO 80202
• Ph 303-357-7314
• Cell 303-748-6473
• Fax [phone]
• Email uep1_at_comcast.net
• Wyoming Pipeline Authority Presentations Can be
  Accessed via the Wyoming Oil Gas Conservation
  Commission Website at www.wogcc.state.wy.us