Bison Discussion May 2008 Agenda Northern Border Overview Bison - - PowerPoint PPT Presentation

Bison Discussion

May 2008

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Agenda

Northern Border Overview Bison Overview

Assumption & Terms Netback Comparison Milestones & Timeline

Cheyenne Summary Discussion

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ND SD MN IA IL IN

Harper

Chicago

Manhattan North Hayden

Port of Morgan Capacity: 2,200 MMcf/d NGPL Point Capacity 922 MMcf/d NNG Point Capacity 2,200 MMcf/d

MT

2,400 Mcf/d

MT

2.4 Bcfd 28.1¢

Port of Morgan- Ventura

1.5 Bcfd

Ventura- Harper

987 Mmcfd 9.3¢ . 7%

Harper- Manhattan

557 Mmcfd 1.3¢ .1%

Manhattan- North Hayden

5.4¢ .4% 2.2%

Company

Capacity Rate Use Gas

Ventura

Rates Include Compressor Usage Surcharge

Total 44.1¢ 3.4%

Northern Border Overview

Estimated Transportation Costs From AECO to Monchy: Demand $0.21 Fuel 0.7%

AECO

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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.

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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
• n line June 1
• Additional on system ethanol load of 40 MMcf/d

Source: NNG website

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Bison Overview

• 289 Miles
• 24” Pipeline
• Capacity 406 MMcf/d
• 13,000 HP
• Fuel .62%
• Capital $498 Million
• Max. Capacity 660 MMcf/d
• In-Service date:

November 15, 2010 SD ND MT

Big Horn Fort Union Williston Basin Bear Paw Energy CS #2 CS #3 CS #4

WY

Powder River Basin CS #5 CS #6

Bison

C.S. A C.S. C C.S. D

Compressor Station Future Compressor Station

C.S. B

Dead Horse

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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

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Bison Netback Comparison to Deadhorse, WY

May 14, 2008

Path FW 2011 Netback to PRB

Vent/NBPL-Bison $8.66 Chicago/NBPL-Bison $8.65 Cheyenne/WIC-Ft. Union $8.26 $8.24 Chicago/MGT-REX-Ft. Union $8.13 Mid Cont/Cheyenne- WIC-Ft. Union

2011 Netback to Powder River Basin

7.80 7.90 8.00 8.10 8.20 8.30 8.40 8.50 8.60 8.70 Ventura - NBPL Chicago - NBPL Cheyenne MidContinent Chicago - REX $ /M m b t u

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Average Netback to Deadhorse

5.7524 5.7679 5.2922 5.4130 4.0039 3.5000 4.0000 4.5000 5.0000 5.5000 6.0000 2007 $/MMbtu Bison/NBPL Ventura Bison/NBPL Chicago REX/MGT Chicago Cheyenne Plains Mid-Continent WIC/FU Cheyenne

Source: Platts Gas Daily prices and internal analysis

Bison Netback Comparison to Deadhorse, WY

Historical 2007

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Bison Milestones & Timeline

Nov 15, 2010

Condemnation (Immediate Possession) 4 months Shipper Milestones Pre-Nepa Process 11 months FERC 7(c) Filing 9 months Construction 5 months

In-Service

Order Pipe & Compression 3/1/08 6/16/08 6/15/10 5/15/09 2/15/10

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Deadhorse Cheyenne Hub

Bison Pipeline

• Ft. Union

WIC Entrega CIG

Bison Backhaul from Cheyenne, WY

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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
• f 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

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Contacts

Dick Shepherd

402.492.7431 402.651.9713 cell

Bill Fonda

402.492.7430 402.651.8274 cell