1

North Atlantic Pipeline Partners, L.P.

Atlantic Canada to US Pipeline Strategyand Related Offshore Facilities

William A. WisePresident and Chief Executive Officer,

El Paso Energy Corporation

March, 2001

2

Project ConfigurationNEB/FERC Application

November 1997

Updated NAPP Atlantic Canada Pipeline Strategy

3

Submitted to NEB November 1997

Encompassed pipeline system

from Grand Banks to U.S. border

Contents

Volume 1 Application

Volume 2 Environmental Impact Analysis

Volume 3 Environmental Baseline Conditions

Volume 4 Socio Economic Impact

Volume 5 Regional Benefits Plan

North Atlantic Pipeline Partners, L.P.Canadian National Energy Board Application

4

Submitted to FERC 1997

Encompassed U.S. segment only

FERC Application includedResource Report No. 1: Project Description

Resource Report No. 2: Water Resources

Resource Report No. 3: Vegetation/Wildlife

Resource Report No. 4: Cultural Resources

Resource Report No. 5: Socio-economics

Resource Report No. 6: Geology

Resource Report No. 7: Soils

Resource Report No. 8: Land Use, Recreation and Aesthetics

Resource Report No. 9: Air Quality and Noise Levels

Resource Report No. 10: Alternatives

Resource Report No. 11: Reliability and Safety

Resource Report No. 12: PCB Contamination

An application to the Minerals Management Service (MMS) with respect to the pipeline route corridor was also submitted in 1997

North Atlantic Pipeline Partners, L.P.United States Applications

5

Multibeam bathymetry/backscattersurvey

Survey Coverage for Atlantic Canada to US Pipeline Network

North Atlantic Pipeline Partners, L.P.Completed Survey

Sample key map showing series of route survey drawings

6

Atlantic Canada to US Pipeline Strategy

- US-CAN pipeline -- Grand Banks Pipeline -

- Laurentian Pipeline -

7

North Atlantic Pipeline Partners, L.P.Proposed Pipeline US-CAN

US-CAN Pipeline with Alternates

Panuke to Seabrook Pipeline Profile

-300-250-200-150-100

-500

50100

0 45 89.4 133.2 178.2 217.5 262.5 301.8 346.8 391.8 432.9 477.9 522.9 567.9 608.4 653.4 698.4 740.7 785.7 830.7 870 912.9

Distance from Panuke (km)

Dep

th (

m)

8

North Atlantic Pipeline Partners, L.P.Proposed Pipeline US-CAN

Landfall and pressure reduction station, Seabrook, N.H.

Tie in to existing onshore pipeline infrastructure, Dracut interconnect

From Panuke

9

North Atlantic Pipeline Partners, L.P.Proposed Tariff Structure

Estimated initial tariff under a variable rate structure.

Benefit of increased volumes shared by transporter and producer.

Panuke to Seabrook Pipeline Tarrif vs Throughput

$0.00

$0.50

$1.00

$1.50

$2.00

010

020

030

040

050

060

070

080

090

010

0011

0012

0013

0014

00

mmscf per day

USD

per

mcf

$0.00

$0.50

$1.00

$1.50

$2.00

TotalDemand

10

ICEBERGS

• Greenland origin

• 40,000/year created

• Average flux of 400 - 1000/year across 48o North

• Highly variable spatially and temporally

• Highly seasonal

• NFLD average size 150,000 t (70 m long, 50 m deep)

• May take 2 years to arrive and 2 weeks to disappear

ICEBERGS

• Greenland origin

• 40,000/year created

• Average flux of 400 - 1000/year across 48o North

• Highly variable spatially and temporally

• Highly seasonal

• NFLD average size 150,000 t (70 m long, 50 m deep)

• May take 2 years to arrive and 2 weeks to disappear

North Atlantic Pipeline Partners, L.P.Pipeline Route Development- Grand Banks

The ICEBERG Challenge

11January 2000

Grand Banksof

Newfoundland

Newfoundland

Come by Chance

St. John’s

Argentia

50o

44o

50o

48o

56o54o 52o 50o 48o 46o

48o

46o

56o54o 52o 50o 48o 46o

46o

44o

Gas HubGBS

625 km30 Inch

Export Pipeline

North Atlantic Pipeline Partners, L.P.Proposed Pipeline - Grand Banks

12

Phase 3 Laurentian36 inch, 806 km

Nova Scotia

Newfoundland

St Pierre

Come by Chance

Halifax

SOEP

CountryHarbour

New Brunswick

Master Junction Platform

North Atlantic Pipeline Partners, L.P.Proposed Laurentian Pipeline

13

Atlantic Canada to US Pipeline Strategy

- Offshore Facilities/Gas Infrastructure -

14

Applicable Technology

North Atlantic Pipeline Partners, L.P.Deep Panuke Platform Screening Study

GBS

Jack-upJacket

OPTION 1

OPTION 2

OPTION 3

GORGON

SOEPElgin/Franklin

15

North Atlantic Pipeline Partners, L.P.Jack-up Production and DrillingJacket wellhead, Tanker StorageOPTION 1

Gas Export Pipeline

CondensateTransferLine

Shuttle Tanker

Storage Tanker

North Atlantic Pipeline Partners, L.P.GBS Production and storageJack-up Drilling, Jacket wellhead

OPTION 2

Gas Export Pipeline

CondensateTransferLine

Shuttle Tanker

North Atlantic Pipeline Partners, L.P.Jacket Production, Jack-up DrillingJacket wellhead, Tanker Storage

OPTION 3

Gas Export Pipeline

CondensateTransferLine

Shuttle Tanker

Storage Tanker

North Atlantic Pipeline Partners, L.P.Deep Panuke Development Options

Jack-up Jacket

GBS

16

North Atlantic Pipeline Partners,

L.P.Deep Panuke

Platform ScreeningPreliminary COSTS

GBS with Storage

Jack-up with Tanker

Storage

Jacket with Tanker Storage

mmUSD mmUSD mmUSDGBS with 500,000 bbl storage 115Deck Structure Barge deck 3,000 t 6Jack-up Structure 110

Jacket 2,500 t and piles 1,500 t 20Transport and Installation 25

Topsides support structuse 2,000 t 10Tanker 500,000 bbl 80 80Loading buoy/turret 5 12 12

totals 126 202 147

Topsides are not included

Cost of Liquids line from Panuketo N.S. circa $50 million USD

17

Description of Generic GBS Production Platform

• New generation iceberg resistant platform• Can withstand environmental conditions of theGrand Banks

• Cost efficient Construction driven design• Design life of more than 50 years• Provides for a large number of platform wellswith inexpensive year-round drilling

• Large number of pre-installed risers and J-tubes• Oil storage 2 million barrels• Topside capacity at tow out 35,000 tonnes• Provides large flexibility for future development • Perfect host for a large pipeline to shore

NAPP holds exclusive license for GBS technology in Atlantic Canada

18

Deck Elevation

Deck Plan

Illustration of Generic Drilling/Wellhead GBS

19

North Ben Nevis

Cape R

ace

Amet

hyst

Fortu

ne

Trep

asse

y

North DanaTrave

Hibern

ia

Terra

Nov

aSouth TempestGas Export P

ipeline

Oil Export Pipeline

White Rose GBS Jeanne D’Arc Basin Hub

Plan of Basin Hub Concept

20

Hebron Asset DevelopmentProduction, Storage and Drilling Arrangement Concepts

Concept 1: Production, storage and drilling GBS at Hebron, similar at Ben Nevis with fewer slots and more risers for gas hub function

Concept 2: Large Production, storage and drilling GBS at Hebron, small well-head and riser GBS gas hub at Ben Nevis

Concept 3: Small wellhead GBS atHebron, small wellhead and riser GBS at Ben Nevis, storage and production on FPSO

Ben NevisHebron

Ben NevisHebron

Hebron Ben Nevis

21

Hebron Asset DevelopmentProduction, Storage and Drilling Arrangement Screening

22

Ben Nevis Hub:Basin Development Concept

N

Tanker Offloading

Hebron In fieldHebron In field

E. Rankin

Terra Nova Springdale

Hibernia1

Mara/S.Mara/Nautilus

Export RiserExport Riser

Export Riser

Fortune

Trepassey Amethyst

White Rose

TraveNorth Dana

“Future” J Tubes

Hibernia2

N.Ben Nevis

Hebron In field

S.Tempest

NExport Riser

Cape Race

“Future” J Tubes

23

Atlantic Canada to US Pipeline Strategy

- Atlantic CanadaRegional Hydrocarbon Potential -

24

Scotian ShelfRegional Overview

1998-99 bids for work expenditure accepted by CNSOPB:

Total $650 million

25

Laurentian Basin Reserve Potential

Estimated undiscovered resources in the order of 8-9 TCF

In February 1999, Gulf and Mobil Canada announced their intention to create a joint venture and joint operating agreement covering a total of 8.6 million acres (5.4 million Gulf acres plus 3.2 million Mobil acres) in Canadian and French territorial waters. As part of Mobil's commitment, they will fund and drill a well prior to April 2001.

26

Grand Banks Jeanne D’Arc Basin Reserve Overview

Total Discovered: 5050 BCF

Estimated Undiscovered: 7550 BCF

27

Grand Banks Regional Overview

1999 bids accepted by CNOPB:

Total $192,469,203.00

Accepted Bids 1999

Call For Bids 2000

Accepted Bids 1999

Call For Bids 2000

28

Field BCF

North Bjarni 2247Gudrid 924

Bjarni 863

Hopedale 105

Snorri 105

Total Labrador 4244

Labrador ShelfRegional Overview

29

A Closer Look: North Bjarni F-06Significant Discovery Area

Interest Holders(* Representative)Gulf Canada Resources Limited 22.86Petro-Canada* 21.35Husky Oil Operations Limited 17.13Crestar Energy Inc. 11.75Suncor Inc. 10AGIP Canada Ltd. 10177293 Canada 6.91

Effective Date

North Bjarni F-06

SDL No. 185B

7 592 4-Apr-87

Relevant Discovery

Relevant Licence

Current Hectarage

%

30

Atlantic Canada to US Pipeline Strategy

- NewfoundlandLNG Receiving Terminal -

31

Atlantic Canada to US Pipeline Strategy- Newfoundland LNG Receiving Terminal -

HolyroodLNG Project

Option 1 -Start-up

ExpansionStorage Option

32

Atlantic Canada to US Pipeline Strategy- Newfoundland LNG Receiving Terminal -

HolyroodLNG Project

Option 1 -Start-up

ExpansionStorage Option

33

Holyrood Power Plant

MUN Steam Plant

Northeast Avalon

St. John’s

LNG Storage

Primary pipeline

Secondary pipelines

Follow-on from Holyrood start-up

34

Import Facilities, Pipelines and Customers Under ConsiderationStudy AreaCustomer sites On Shore PipelinesOn Shore StorageReceiving Terminal

Come By Chance

Duff’s (Holyrood)

Long Harbour

Future Pipeline from Grand BanksGrassy

Point

St. John’s

Memorial Steam Plant

Argentia

Future Pipeline

Potential Future Lateral Pipeline

34

5 67

8

Existing Facilities Considered

1 - Holyrood Power Generating Station

2 - Memorial University Steam Plant

3 - St Claire’s Hospital

4 - Labatt Brewery

5 - Molson Brewery

6 - Miller Center

7 - Pleasantville Steam Plant

8 - Metrobus

9 - Come by Chance Oil Refinery

2

1

St. John’s Region

9

35

North Atlantic Pipeline Partners, L.P.

End of PresentationMarch 22, 2001