Continental ConnectorContinental ConnectorWPAWPA

October 25, 2005October 25, 2005

presented bypresented by

Laine LobbanLaine LobbanManager, Business DevelopmentManager, Business DevelopmentEl Paso Western PipelinesEl Paso Western Pipelines

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Connectivity / Take-AwayConnectivity / Take-Away

PipelinePipelineTake-Away Take-Away

Capacity (MMcf/d)Capacity (MMcf/d)

ANRANR 1,4001,400

Tennessee GasTennessee Gas 4,1504,150

Texas GasTexas Gas 2,0002,000

Texas EasternTexas Eastern 2,5002,500

TrunklineTrunkline 1,6001,600

CenterPoint Energy MRTCenterPoint Energy MRT 730730

Columbia GulfColumbia Gulf 2,4002,400

Florida GasFlorida Gas 1,9001,900

Natural Gas PipelineNatural Gas Pipeline 1,8001,800

Panhandle EasternPanhandle Eastern 1,5001,500

Southern Natural GasSouthern Natural Gas 3,0003,000

TranscoTransco 4,0004,000

TOTALTOTAL 26,98026,980

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Project DescriptionProject DescriptionOpal to SoutheastOpal to Southeast

► Aggregates Wyoming gas through existing El Paso infrastructure with minimal new Aggregates Wyoming gas through existing El Paso infrastructure with minimal new facilitiesfacilities

► First 600 MDth/d to Greensburg at favorable rateFirst 600 MDth/d to Greensburg at favorable rate– Does not require large commitments – can expand for 150 MdthdDoes not require large commitments – can expand for 150 Mdthd– Rate is not less favorable for small shippersRate is not less favorable for small shippers– Rampable with growth; avoids stranded demand chargesRampable with growth; avoids stranded demand charges– Project does not have to be supported entirely by Wyoming producers or State of Project does not have to be supported entirely by Wyoming producers or State of

WyomingWyoming– Direct access uses existing El Paso pipeline infrastructure from Opal, Wind River, Direct access uses existing El Paso pipeline infrastructure from Opal, Wind River,

Wamsutter, and Powder RiverWamsutter, and Powder River– Earmarked production is from Wyoming, not ColoradoEarmarked production is from Wyoming, not Colorado

► 1 to 2 Bcf/d expansion from mid-continent to southeast1 to 2 Bcf/d expansion from mid-continent to southeast– 42” pipe42” pipe– Highest growth market in U.S.Highest growth market in U.S.– Anchored by 500 MDth/d+ commitments from mid-continentAnchored by 500 MDth/d+ commitments from mid-continent– Predominately existing mid-continent production, which will alleviate Rockies basisPredominately existing mid-continent production, which will alleviate Rockies basis

► Late 2007 in-service to Greensburg, mid 2008 in-service to Perryville and Pugh, AlabamaLate 2007 in-service to Greensburg, mid 2008 in-service to Perryville and Pugh, Alabama► Not an end-to-end Greenfield project, so timing delays minimized and environmental Not an end-to-end Greenfield project, so timing delays minimized and environmental

impacts much lessimpacts much less► Fewer regulatory and environmental issues to delay or deter project or strand shipper at Fewer regulatory and environmental issues to delay or deter project or strand shipper at

intermediate delivery pointsintermediate delivery points

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Projected North American DemandProjected North American Demand

9.09.010.110.111.711.7

8.78.711.111.114.414.4

14.114.114.614.616.216.2

4.04.04.24.24.94.93.83.8

4.74.75.25.2

10.510.510.910.911.611.6

MexicoMexico

5.35.36.46.47.37.3

WesternWesternCanadaCanada

EasternEasternCanada Canada NW and NW and

AlaskaAlaska

6.36.37.27.27.77.7

2.52.52.72.73.13.1

5.05.06.26.27.07.0

MaritimesMaritimesand and

Northeast U.S.Northeast U.S.

3.73.74.14.14.74.7

TotalTotal

20042004

72.872.8

20092009

82.282.2

20142014

93.693.6

TotalTotal

20042004

72.872.8

20092009

82.282.2

20142014

93.693.6

Bcf/dBcf/d

Source: El Paso

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Project SummaryProject Summary

► Expecting to complete transportation letter agreement for Expecting to complete transportation letter agreement for commitment from mid-continent of 500 MDth/d this week commitment from mid-continent of 500 MDth/d this week

– Primarily existing productionPrimarily existing production

– Will free up capacity from Greensburg on existing pipesWill free up capacity from Greensburg on existing pipes

– Will alleviate Rockies basis issue minimum of 1 year Will alleviate Rockies basis issue minimum of 1 year faster than alternatives at less cost to Rockies producerfaster than alternatives at less cost to Rockies producer

► Project utilizes existing infrastructure through most of routeProject utilizes existing infrastructure through most of route

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Project ScheduleProject Schedule

► Preliminary engineering completePreliminary engineering complete

► NEPA pre-filing starting this weekNEPA pre-filing starting this week

– NEPA scope much smaller than cross country Greenfield projectNEPA scope much smaller than cross country Greenfield project

► Open season on-goingOpen season on-going

► Rates for different segments are establishedRates for different segments are established

► Anticipate final agreements in JanuaryAnticipate final agreements in January

► FERC filing in late 2006 for entire projectFERC filing in late 2006 for entire project

► Avoids risk of phased filing approach where project could stall at Avoids risk of phased filing approach where project could stall at intermediate delivery pointsintermediate delivery points

► Start construction in spring 2007Start construction in spring 2007

► In-service to Greensburg late 2007In-service to Greensburg late 2007

► In-service to Perryville and Pugh mid 2008In-service to Perryville and Pugh mid 2008

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Project – One Other ConsiderationProject – One Other Consideration

► Alaska Pipeline has stepped up horizon for delivery to Alaska Pipeline has stepped up horizon for delivery to U.S. given U.S. price levelsU.S. given U.S. price levels

– 3 to 3.5 Bcf/d pipeline; 35 Tcf of recoverable gas3 to 3.5 Bcf/d pipeline; 35 Tcf of recoverable gas

– Producers are currently negotiating agreement with Producers are currently negotiating agreement with AlaskaAlaska

– Would follow with NEPA work in preparation of filing Would follow with NEPA work in preparation of filing applications to Canada and U.S. Federal regulatory applications to Canada and U.S. Federal regulatory agenciesagencies

– Will enter through Northwest, Chicago, and NortheastWill enter through Northwest, Chicago, and Northeast

– Estimated 2012 in-service timeline per recent reportEstimated 2012 in-service timeline per recent report

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Questions?Questions?

► Contact:Contact:– Craig CoombsCraig Coombs 719-520-4387719-520-4387– Laine LobbanLaine Lobban 719-520-4344719-520-4344– Ed MillerEd Miller 719-520-4305719-520-4305