Bison Discussion May 2008
Agenda � Northern Border Overview � Bison Overview � Assumption & Terms � Netback Comparison � Milestones & Timeline � Cheyenne � Summary � Discussion 2
Northern Border Overview AECO Estimated Transportation Costs Company From AECO to Monchy: Capacity Rate Use Gas Demand $0.21 Fuel 0.7% Port of Port of Morgan 2.4 Capacity: 2,200 MMcf/d Morgan- 28.1¢ MT Bcfd Ventura 2.2% ND 2,400 Mcf/d NGPL Point MT Capacity MN 922 MMcf/d Ventura- 1.5 SD Harper Bcfd Ventura 5.4¢ .4% Chicago NNG Point IA Harper North Manhattan Harper- Capacity 987 Hayden Manhattan 2,200 MMcf/d 9.3¢ . 7% Mmcfd IL IN Manhattan- 557 North Hayden Mmcfd Rates Include Compressor Usage Surcharge 1.3¢ .1% Total 44.1¢ 3.4% 3
Ventura Pricing Relationships � Average Winter 2007/08 (YTD) � Chicago $7.68 � Henry Hub $7.62 � Ventura $7.58 � Demarc $7.25 � Cheyenne $6.25 � Ventura was second-highest priced market on February 20, 2008. Transco Zone 6 area was the only higher priced market. 4
Additional Northern Natural Gas Demand Northern Lights expansion project in Northern Natural Gas’s � market area is expected to increase demand by: 358,000 on November 2007 � 494,000 by November 2008 � 604,000 by November 2009 � 668,000 by November 2010 � Northern Natural Gas has 8 Bcf of additional storage coming � on line June 1 Additional on system ethanol load of 40 MMcf/d � Source: NNG website 5
Bison Overview Williston Basin CS #3 CS #4 CS #2 289 Miles � Bear Paw Energy 24” Pipeline � CS #5 ND Capacity 406 MMcf/d � Bison CS #6 13,000 HP � MT C.S. Fuel .62% � C.S. D C Capital $498 Million Powder River � Basin Max. Capacity 660 MMcf/d C.S. � B In-Service date: � C.S. Big Horn SD A November 15, 2010 Dead Horse WY Fort Union Compressor Station Future Compressor Station 6
Bison Assumptions & Terms � Rate Summary � Bison $.55 reservation rate – Deadhorse to CS6 � Fuel estimated at .62% � � Northern Border Pipeline $.23 reservation rate – POM to Ventura � Fuel Average CS6 to Ventura at 1.29% � � 10-Year Term � Receipt Pressure 1400 psig 7
Bison Netback Comparison to Deadhorse, WY May 14, 2008 FW 2011 2011 Netback to Powder River Basin Netback to PRB Path 8.70 8.60 Vent/NBPL-Bison $8.66 8.50 8.40 Chicago/NBPL-Bison $8.65 $ /M m b t u 8.30 8.20 Cheyenne/WIC-Ft. Union $8.26 8.10 8.00 Mid Cont/Cheyenne- $8.24 WIC-Ft. Union 7.90 7.80 Chicago/MGT-REX-Ft. $8.13 Ventura - NBPL Chicago - NBPL Cheyenne MidContinent Chicago - REX Union 8
Bison Netback Comparison to Deadhorse, WY Historical 2007 Average Netback to Deadhorse 6.0000 5.7679 5.7524 5.4130 5.5000 5.2922 5.0000 $/MMbtu 4.5000 4.0039 4.0000 3.5000 2007 Bison/NBPL Ventura Bison/NBPL Chicago REX/MGT Chicago Cheyenne Plains Mid-Continent WIC/FU Cheyenne Source: Platts Gas Daily prices and internal analysis 9
Bison Milestones & Timeline In-Service Nov 15, 2010 3/1/08 6/16/08 5/15/09 2/15/10 6/15/10 Condemnation Shipper Milestones Pre-Nepa (Immediate FERC 7(c) Filing Process Possession) Construction 9 months 11 months 5 months 4 months Order Pipe & Compression 10
Bison Backhaul from Cheyenne, WY Deadhorse Bison Pipeline Ft. Union WIC Entrega CIG Cheyenne Hub 11
Bison Shipper Benefits - Summary Competitive netback pricing � Provides transportation and pricing diversity for Powder � River Basin Pipeline grid Efficiently utilizes existing downstream assets to attractive � markets Minimal impact on downstream pricing due to displacement � of Canadian production North outlet enhances existing gathering capability and value � Seamless transportation (one nom, one bill) from PRB to � Market Incremental export capacity to benefit overall Rockies, in � particular eastern constraints 12
Contacts � Dick Shepherd � 402.492.7431 � 402.651.9713 cell � Bill Fonda � 402.492.7430 � 402.651.8274 cell 13
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