Presentation to Wyoming Pipeline Authority - - PowerPoint PPT Presentation

Presentation to Wyoming Pipeline Authority

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• Project Sponsor: Linear Energy
• Founded in 2005
• Ownership

– Dan A. Hughes Company (privately-held E&P) – Jornayvaz-Stone Holdings LP

• Business Lines

– Producer Services

• Represent small and medium sized producers in Texas

and Louisiana

– Gathering / Transportation

• Own 100+ miles of intrastate pipelines in Texas

– Processing, Treating & Compression – Natural Gas Storage Affiliates

• Blue Sky Gas Storage (Logan County, Colorado)
• Laguna Salada Gas Storage (south Texas)

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Location: Logan County, Colorado

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Description

Reservoir Gas Storage

• 4.4 Bcf working gas
• 100 MMcfd injection
• 100 MMcfd withdrawal (expandable to 120 MMcfd)
• 4,800 hp of compression

Interconnects:

• KMIGT Segment 760 (e.g., Pony Express; 250 Mmcfd): bi-directional
• Trail Blazer (880 MMcfd): bi-directional
• Rockies Express (1800 MMcfd): receipt-only (proposed)

Services and Tariff (Proposed)

Blue Sky has requested market based rates, with the capacity, commodity and fuel being negotiated under the contracts with customers. Fuel will based on a percentage in kind (pass through). Services to be Offered

• Firm Storage Services (FSS)
• Interruptible Storage Services (ISS)
• Interruptible Loan Services (ILS)
• Interruptible Park Services (IPS)
• Interruptible Wheeling Services (IW)

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Geology

Armstrong Field

• Discovered 1950
• D-2 sand: 5.4 Bcf (cumm.)
• Zone abandoned: 1972
• J-Sand oil produced until 1991
• O-sand: oil, non-commercial
• All zones currently abandoned

D-2 Sandstone

• 5200 ft. depth (mvd)
• 55 ft. gross sand; 87% net
• 1480 psi discovery pressure;
• 16% porosity (avg.)
• 75 mD permeability
• Gas expansion, or weak edge-

water drive

• Low NGL’s, no CO2

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Regulatory Status

County Special Use permit received December 19, 2008 County Zoning exception received May 26, 2009 FERC application filed June 5, 2009 FERC EA comment period concluded October 30, 2009 Requested certificate date December 31, 2009 FERC Notice to Proceed (anticipated) April, 2010 In-Service March, 2011

Contact Us

Tom Shaw President/Project Manager Paul Jornayvaz Vice President/Owner Brian Stone Vice President/Owner/CFO Blue Sky Gas Storage LLC 1000 Louisiana, Suite 6905 Houston, TX 77002 P: 713-650-0179 www.blueskygasstorage.com