steve newell cig marketing el paso western pipelines colorado springs, colorado casper, wyoming...

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Steve Newell Steve Newell CIG Marketing CIG Marketing El Paso Western Pipelines El Paso Western Pipelines Colorado Springs, Colorado Colorado Springs, Colorado Casper, Wyoming Casper, Wyoming February 20, 2007 February 20, 2007 Wyoming Pipeline Wyoming Pipeline Authority Meeting Authority Meeting

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Page 1: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

Steve NewellSteve NewellCIG MarketingCIG Marketing

El Paso Western PipelinesEl Paso Western PipelinesColorado Springs, ColoradoColorado Springs, Colorado

Casper, WyomingCasper, WyomingFebruary 20, 2007February 20, 2007

Wyoming PipelineWyoming PipelineAuthority MeetingAuthority Meeting

Page 2: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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Cautionary Statement Regarding Forward-Cautionary Statement Regarding Forward-looking Statementslooking Statements

This presentation includes forward-looking statements and projections, made in reliance on the safe harbor This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, our ability to successfully contract, build and operate the pipeline projects described in this limitation, our ability to successfully contract, build and operate the pipeline projects described in this presentation; changes in supply of natural gas; general economic and weather conditions in geographic regions presentation; changes in supply of natural gas; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition, and other factors described are located; the uncertainties associated with governmental regulation; competition, and other factors described in the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes in the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise. whether as a result of new information, future events, or otherwise.

Page 3: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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AgendaAgenda

■ High Plains PipelineHigh Plains Pipeline

■ High Plains StorageHigh Plains Storage

■ Medicine Bow Lateral ExpansionMedicine Bow Lateral Expansion

Page 4: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

C O L O R A D OC O L O R A D O

N E W M E X I C ON E W M E X I C O

T E X A ST E X A S

DenverDenver

ColoradoColoradoSpringsSprings

PuebloPueblo

W Y O M I N GW Y O M I N G

U T A HU T A H

AmarilloAmarillo

CheyenneCheyenne

GreensburgGreensburg

CIG, WIC, andCheyenne Plains

CIG

WIC

CheyennePlains

Page 5: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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Steady Demand Growth inSteady Demand Growth inColorado (including Front Range)Colorado (including Front Range)

0.31 0.37 0.38

0.160.19 0.19

0.300.30 0.31

0.260.28 0.30

2005 2010 2015

Residential Commercial Industrial Power Gen

Compound AnnualGrowth Rate 2005 – 20151.4%

1.4%

0.4%

1.9%

2.0%

Bcf/d

CO TotalCO Total

~1.4%~1.4%

Bcf/dBcf/d

20052005

1.031.03

20102010

1.141.14

20152015

1.181.18

CO TotalCO Total

~1.4%~1.4%

Bcf/dBcf/d

20052005

1.031.03

20102010

1.141.14

20152015

1.181.18

Denver

Bcf/d Bcf/d

Page 6: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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High Plains Pipeline ProjectHigh Plains Pipeline Project

■ 164 miles of natural gas pipeline164 miles of natural gas pipeline

• 79 miles of 30”79 miles of 30”

• 85 miles of 24”85 miles of 24”

■ 875 MDth/d875 MDth/d

• Major receipt pointsMajor receipt points

■ Cheyenne HubCheyenne Hub

■ Young StorageYoung Storage

■ High Plains StorageHigh Plains Storage

• Major delivery pointsMajor delivery points

■ HudsonHudson

■ Blue SpruceBlue Spruce

■ Tri-TownTri-Town

■ East DenverEast Denver

■ RateRate

• $3.95/Dth incremental recourse reservation rate$3.95/Dth incremental recourse reservation rate

• 0.15% FL&U0.15% FL&U

Page 7: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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High PlainsStorage

Page 8: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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20082007

January 12Open SeasonCommenced

February 12Open Season

Ended

April (est.)FERC Filing

February (est.)FERC Approvalto Construct

High Plains Pipeline TimingHigh Plains Pipeline Timing

FallAnticipatedIn-Service

■ Open Season results are pendingOpen Season results are pending

Page 9: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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High Plains Storage ProjectHigh Plains Storage Project

■ Storage descriptionStorage description

• Depleted gas reservoir (Totem Field)Depleted gas reservoir (Totem Field)

• 10.7 Bcf gas in place10.7 Bcf gas in place

• 7 Bcf of working gas7 Bcf of working gas

• 3.7 Bcf of base gas3.7 Bcf of base gas

• 200 MMcf/d maximum withdrawal rate200 MMcf/d maximum withdrawal rate

• 100 MMcf/d maximum injection rate100 MMcf/d maximum injection rate

■ RatesRates

• $4.6392/Dth monthly reservation based on MDWQ$4.6392/Dth monthly reservation based on MDWQ

• $0.1325/Dth monthly storage capacity charge based on MAC$0.1325/Dth monthly storage capacity charge based on MAC

• $0.0627/Dth injection rate$0.0627/Dth injection rate

• $0.0627/Dth withdrawal rate$0.0627/Dth withdrawal rate

• 2.6% storage fuel2.6% storage fuel

Page 10: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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200920082007

January 16Open SeasonCommenced

February 16Open SeasonEnded

August (est.)FERC Filing

May (est.)FERC Approvalto Construct

High Plains Storage Project TimingHigh Plains Storage Project Timing

SpringAnticipatedIn-Service

■ Open Season results are pendingOpen Season results are pending

Page 11: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

Roland HarrisRoland HarrisBusiness DevelopmentBusiness Development

WIC Medicine Bow LateralWIC Medicine Bow LateralOpen SeasonOpen Season

BUSINESS DEVELOPMENT

Page 12: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

C O L O R A D OC O L O R A D O

N E W M E X I C ON E W M E X I C O

T E X A ST E X A S

DenverDenver

ColoradoColoradoSpringsSprings

PuebloPueblo

W Y O M I N GW Y O M I N G

U T A HU T A H

AmarilloAmarillo

CheyenneCheyenne

GreensburgGreensburg

CIG, WIC, andCheyenne Plains

CIG

WIC

CheyennePlains

Page 13: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

Cheyenne C.S.Cheyenne C.S.

POWDER RIVERPOWDER RIVERBASINBASIN Existing Douglas C.S.Existing Douglas C.S.

21,510 HP21,510 HP

NewCompression

Facilities

WICMedicine Bow

CIG

WIC Medicine BowLateral Expansion

Project

Page 14: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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BackgroundBackground

■ Existing Medicine Bow fully contracted at 1,055 MDth/dExisting Medicine Bow fully contracted at 1,055 MDth/d

■ Utilization has ramped from 700/d – 900/d in 2006Utilization has ramped from 700/d – 900/d in 2006

■ Increasing Powder River production requires an expansionIncreasing Powder River production requires an expansion

• Compression addition based on Open Season interestCompression addition based on Open Season interest

■ Douglas supply area receiptsDouglas supply area receipts

• Thunder Creek, Fort Union, MIGC, KMIThunder Creek, Fort Union, MIGC, KMI

■ Cheyenne market area deliveriesCheyenne market area deliveries

• CIG, WIC mainline, PSCo, Cheyenne Plains, TrailblazerCIG, WIC mainline, PSCo, Cheyenne Plains, Trailblazer

• REX deliveries with upcoming hub serviceREX deliveries with upcoming hub service

Page 15: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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TimingTiming

■ Open Season is effective February 15, 2007 to March 9, 2007Open Season is effective February 15, 2007 to March 9, 2007

■ Turnback completed by March 2, 2007Turnback completed by March 2, 2007

• Concurrent Open Season for “seasonal capacity”Concurrent Open Season for “seasonal capacity”

• Assess need for expansionAssess need for expansion

■ WIC decision anticipated by March 31, 2007WIC decision anticipated by March 31, 2007

■ In-service June 2008In-service June 2008

■ See Open Season at:See Open Season at:

• http://cigco.comhttp://cigco.com

• Informational PostingsInformational Postings

• Wyoming Interstate CompanyWyoming Interstate Company

• OtherOther

• Informational LookupInformational Lookup

Page 16: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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Terms and ConditionsTerms and Conditions

■ Rate is $0.1434/Dth (current maximum recourse rate)Rate is $0.1434/Dth (current maximum recourse rate)

■ Term is 7 yearsTerm is 7 years

• Existing shippers may extend contractExisting shippers may extend contract

■ Minimum volume requirement for expansions is 160 MDth/dMinimum volume requirement for expansions is 160 MDth/d

■ WIC Medicine Bow Lateral General Terms & ConditionsWIC Medicine Bow Lateral General Terms & Conditions

• 1,015 psig at Douglas1,015 psig at Douglas

• 950 Btu950 Btu

• WIC FL&U of 0.56%WIC FL&U of 0.56%

Page 17: Steve Newell CIG Marketing El Paso Western Pipelines Colorado Springs, Colorado Casper, Wyoming February 20, 2007 Wyoming Pipeline Authority Meeting

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ContactsContacts

Tom DobsonTom Dobson

719-520-4606719-520-4606

[email protected]@elpaso.com

Roland HarrisRoland Harris

719-520-4380719-520-4380

[email protected]@elpaso.com

Laine LobbanLaine Lobban

719-520-4344719-520-4344

[email protected]@elpaso.com

Ed MillerEd Miller

719-520-4305719-520-4305

[email protected]@elpaso.com

Steve NewellSteve Newell

719-520-4341719-520-4341

[email protected]@elpaso.com

Greg RubenGreg Ruben

719-520-4870719-520-4870

[email protected]@elpaso.com

High Plains Pipeline/Storage Medicine Bow Lateral Expansion