North Dakota Pipeline AuthorityJustin J. Kringstad

December 30, 2010

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December 29, 2010: 156 Drilling Rigs

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North Dakota Crude Oil

Prediction is very difficult,

especially if it's about the future.

-Niels Bohr

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Da

yNorth Dakota Oil Production and Price

History Bakken - Three Forks P10 Bakken - Three Forks P50

Bakken - Three Forks P90 $/Barrel History & DOE-EIA Projected $/Barrel P50

$/Barrel P10

Forecasting Williston Basin Oil Production, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

Today

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Forecasting Williston Basin Oil Production, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

Today

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Challenges*

1) Moving oil out of the

Williston Basin

2) Moving oil within the

Williston Basin

*Modified from Bridger and Belle Fourche Pipelines

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1

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58,000 BOPD

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Current - 118,000 BOPD

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Phase VI: 161,500 BOPD

Up to 185,000 BOPDQ1 2011

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Rail Transportation

EOG – Stanley, ND

Dakota Transport Solutions – New Town, ND

Others Include:MinotDoreStampedeDonnybrook

Williston Basin Oil Production & Export Capacity, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

Today

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The future starts today,

not tomorrow.

-Pope John Paul II

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Several Exciting Developments For Post 2010 Crude Oil Transport

Enbridge Bakken Expansion Program

Keystone XL Marketlink

True Co.’s Baker 300

Plains Bakken North

Unit Train Development16

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Bakken Pipeline Expansion

Saskatchewan Manitoba

Enbridge Pipelines(North Dakota)

North Dakota MinnesotaMontana

ReserveGrenora

Alexander

BEAVERLODGE

Stanley

Lignite

BERTHOLD

Minot

CLEARBROOK

Trenton

CROMER

WeyburnSteelman

Midale

Alida

Portal Link

Virden

EPI Mainline

Plaza

Dunn

McGregor

Bakken Pipeline Expansion Project:Berthold to Cromer

SORTI

Phase 7 Beaver Lodge Looping Project:Beaver Lodge to Berthold

EPND Phase 7 Gathering Projects: SORTI, Dunn, Plaza and McGregor

Proposed TransCanada Marketlink

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• Binding Open Season Complete

• Q1 2013 Proposed Startup

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Proposed Quintana BakkenLink

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Capacity:100,000 BOPD

Proposed Startup:Q1 – 2013

Size: 304 Miles, 10”-16”

Open Season Started: September 27th

True Co.’s Proposed “Baker 300”

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Butte Pipeline CapacityCurrent: 118,000 BOPDQ1 2011: 150,000 BOPD

Q1 2012: 200,000 BOPD (w/Loop)

Keystone XL InterconnectQ1 2013: 100,000 BOPD

Plains Bakken North Pipeline

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Proposed Capacity50,000-75,000 BOPD

Q4 2012

New 103 Miles, 12” PipelineReverse Wascana Pipeline

$160-$200 Million

Williston Basin Oil Production & Export Capacity, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

*Projects still in the proposed or internal review process

Today

Pipeline Transportation Only

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Williston Basin Oil Production & Export Capacity, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

*Projects still in the proposed or internal review process

Today

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North Dakota Truck Imports/Exports

Information collected through the United States International Trade Commission’s Interactive Tariff and Trade DataWeb

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Crude Exports

Crude Imports

*Modified from Bridger and Belle Fourche Pipelines

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Challenges*

1) Moving oil out of the

Williston Basin

2) Moving oil within the

Williston Basin

Reducing Truck Traffic

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Bridger Four BearsQ1 2011

60,000 BOPDApprox 300 Truckloads/Day

Enbridge SORTI/DunnAnticipated Q2 2012Up to 100,000 BOPD

Approx 500 Truckloads/Day

Rangeland COLT Hub and Pipeline

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Gathering, Storage, & Transportation

Tie into Enbridge & Tesoro(20 Mile - 8” - 40,000 BOPD)

Anticipated Dec 2011

210,000 Barrels of Tankage

Rail up to 27,000 BOPD initially (Expandable up to 60,000)

Natural Gas Projects

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Natural Gas Challenges

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ND Gas Gathering Statistics

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Wells With Gas Sales

Wells Without Gas Sales

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$2.2 - $2.5 BILLION In the Next 1-3 Yrs 32

New or Expanding Gas Plants

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Hess Tioga Gas PlantCurrent: 110 MMCFDQ4 2012: 250 MMCFD

ONEOK Garden Creek PlantQ4 2011: 100 MMCFD

Hiland Partners Watford City PlantQ1 2011: 50 MMCFD

Saddle Butte PipelineQ4 2010: 45 MMCFD

ONEOK Stateline I PlantQ3 2012: 100 MMCFD

Raw Natural Gas Processing Plant

Consumer Quality Natural

Gas

Methane and Ethane

Propane

Butane

Natural Gasoline

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Natural Gas ProcessingCurrent Status

Natural GasLiquids

“Y-Grade” if left

fractionated

Raw Natural Gas Processing Plant

Consumer Quality Natural

GasMethane

Ethane

Propane

Butane

Natural Gasoline

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Natural Gas ProcessingWith Ethane Extraction

Natural GasLiquids

“Y-Grade” if left

fractionated

North Dakota Natural Gas Liquids

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Ethane

Y-Grade

Natural Gasoline

Butane

Propane

Vantage Pipeline: Ethane

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43,000 – 57,000 BPD Proposed Startup:

Q3 – 2012Size: 430 Miles, 10”or 12”

Approx. $290 Million

ONEOK Bakken Pipeline: Y-Grade

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60,000 – 110,000 BPD Proposed Startup:

Q1/Q2 – 2013Size:

525-615 Miles, 12”Approx. $700 Million

Refining Study

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Refining Study

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NDPA Monthly Webinars

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North Dakota Pipeline Authority

600 E. Boulevard Ave. Dept. 405Bismarck, ND 58505-0840

Phone: (701)220-6227Fax: (701)328-2820

E-mail: jjkringstad@ndpipelines.com

Website: www.pipeline.nd.gov

Thank You!