North Dakota Pipeline AuthorityEnergy Development and Transmission Committee

Justin J. KringstadAugust 18, 2011 – Bismarck, ND

2

North Dakota Crude Oil

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1949 1956 1963 1970 1977 1984 1991 1998 2005 2012

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Looking Back to March 2009…

Slide from a presentation given to the ND State Legislature in March 2009.

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

4

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

5

Challenges*

1) Moving oil out of the

Williston Basin

2) Moving oil within the

Williston Basin

*Modified from Bridger and Belle Fourche Pipelines

2

1

6

58,000 BOPD

7

185,000 BOPD

25,000 BOPD

8

140,000 BOPD

9

1010

Current 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

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 Development12

1313

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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• Successful Open Season in 2010

• 2013 Startup (Subject to Presidential Permit)

True Co.’s Proposed “Baker 300”

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Goal is to have 300,000 BOPD going in and out of the Baker, MT area by Q1 - 2013

True Co.’s Proposed “Baker 300”

16

Butte Pipeline CapacityCurrent: 118,000 BOPDQ3 2011: 150,000 BOPD

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

Keystone XL InterconnectQ1 2013: 100,000 BOPD

Plains Bakken North Pipeline

17

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

18

Existing & Planned Rail Locations

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Existing1) Stampede

2) Donnybrook

3) Ross – Plains

4) Stanley – EOG

5) Minot – ND Port Services

6) Dore

7) New Town – Dakota

Transport Solutions

8) Beulah

Planned1) Trenton – Savage

2) Epping – Rangeland

3) Tioga – Hess

4) Berthold – Enbridge

5) Belfield - BakkenLink

6) Dickinson – EDOG

1

2

4 5

6 7

8

1 2 3

6

3 4

5

Existing & Planned Rail Locations

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1

2

4 5

6 7

8

1 2 3 3 4

65

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

21

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

22

Williston Basin Truck Imports/Exports

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

23

0

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35,000Ja

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-07

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-08

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r-0

8

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-08

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-09

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9

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-09

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10

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-10

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-10

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-11

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Oil

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rels

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Exports

Imports

*Modified from Bridger and Belle Fourche Pipelines

2

1

24

Challenges*

1) Moving oil out of the

Williston Basin

2) Moving oil within the

Williston Basin

Natural Gas Projects

2525

ND Gas Production

26

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Jul-

02

No

v-0

2M

ar-0

3Ju

l-0

3N

ov-

03

Mar

-04

Jul-

04

No

v-0

4M

ar-0

5Ju

l-0

5N

ov-

05

Mar

-06

Jul-

06

No

v-0

6M

ar-0

7Ju

l-0

7N

ov-

07

Mar

-08

Jul-

08

No

v-0

8M

ar-0

9Ju

l-0

9N

ov-

09

Mar

-10

Jul-

10

No

v-1

0M

ar-1

1

MC

F/D

ay

Produced

Sold

ND Gas Gathering Statistics

27

0

500

1000

1500

2000

2500

3000

3500

4/1

/20

11

1/1

/20

11

10

/1/2

01

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7/1

/20

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4/1

/20

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1/1

/20

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10

/1/2

00

9

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/20

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/1/2

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/20

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1/1

/20

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/1/2

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/20

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4/1

/20

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1/1

/20

07

10

/1/2

00

6

7/1

/20

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4/1

/20

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1/1

/20

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10

/1/2

00

5

7/1

/20

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4/1

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1/1

/20

05

Wells With Gas Sales

Wells Without Gas Sales

Natural Gas Challenge I

28

New or Expanding Gas Plants

290

200

400

600

800

1000

1200

2006 2008 2010 2011 2012

MM

CFD

Gas Production

Plant Capacity

30

Natural Gas Plant Intake, MMCFD

31

North Dakota Natural Gas

Processing and Gathering

32

Mountrail/Burke Counties

Bear Tracker Energy150+ Well Connections in

2011

Tie into Pecan’s Stanley Facility

Robinson Lake Expansion

33

McKenzie County

ONEOK Garden Creek Plant

Q4 2011: 100 MMCFD

Hiland Partners Watford City Plant

June 2011: 50 MMCFD

Saddle Butte PipelineJuly 2011: 45 MMCFD

34

Dunn County

Arrow Pipeline Gathering System

Saddle Butte Gathering and Processing

July 2011: 45 MMCFD

35

Williams County

ONEOK Stateline I PlantQ3 2012: 100 MMCFD

ONEOK Stateline II PlantQ4 2012: 100 MMCFD

Hess Tioga PlantCurrent: 110 MMCFDQ4 2012: 250 MMCFD

36

Stark County

Whiting Pronghorn PlantNov 2011: 30 MMCFD

Bakken ExpressNatural Gas Trucking

Petro Hunt Little Knife Plant

Natural Gas Challenge II

37

Williston Basin Interstate Pipeline

38

Charbonneau Expansion32 MMCFD

Added in 2008

7 MMCFD To Added Sep 2011

Baker Storage ExpansionApril 2012

Potential Portal Delivery

Pecan’s Prairie Rose Pipeline

100 MMCFD Initial Capacity

39

Alliance Tioga Lateral Pipeline

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Initial Design 120,000 MCFD Proposed Startup: July 2013

Size: 80 Miles, 12”-16”

41

North Dakota Natural Gas Liquids

Vantage Pipeline: Ethane

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43,000 – 57,000 BPD Proposed Startup:

Q3 – 2012Size: 430 Miles, 10”

$290 Million

ONEOK Bakken Pipeline: Y-Grade

43

60,000 – 110,000 BPD Proposed Startup:

Q1/Q2 – 2013Size:

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

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Public Presence

NDPA Webinars

45

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

Contact Information