steve newell cig marketing el paso western pipelines colorado springs, colorado casper, wyoming...
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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
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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.
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AgendaAgenda
■ High Plains PipelineHigh Plains Pipeline
■ High Plains StorageHigh Plains Storage
■ Medicine Bow Lateral ExpansionMedicine Bow Lateral Expansion
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
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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
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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
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High PlainsStorage
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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
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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
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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
Roland HarrisRoland HarrisBusiness DevelopmentBusiness Development
WIC Medicine Bow LateralWIC Medicine Bow LateralOpen SeasonOpen Season
BUSINESS DEVELOPMENT
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
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
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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
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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
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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%
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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