Kinder Morgan

2. Kinder Morgan Rocky Mountain Domestic Producer Concerns - that crude oil production in the region is going to continue to grow, -that cheap Canadian crude is displacing Rockies production in the market, - that the local refining markets won’t be able to handle the added production, - that producers have too much production in the local market basket, - that there’s insufficient pipeline capacity to move incremental barrels out of the local market, - that current markets have too much price control over their production, - that the producers require an ability to move future additional volumes to other markets outside the PAD IV area and -thattime is of the essence.

3. EASTERN ROCKIES CRUDE PRICE Plains Postings with Williston Sweet and DJ differential Williston sweet traded at parity with DJ sweet until January 2006. WTI Posted Crude Prices RM Sweet Crude Discount relative to WTI

4. Kinder Morgan Historical Prospective - 12 Years Ago – Why Express was Built - Total available Rockies crude production approximated the total refining capacity. - PADD IV crude oil production was declining at a rate of above 20,000 b/d per year. - Regional refiners were challenged as to how to meet new motor fuel specs. - Refiners ability to meet upcoming fuel specs were limited by available crude types. - Refined products pipelines into the area were on the drawing board. Reality is that without the Express system there would be between 2 and 4 fewer refineries in the Rocky Mountain area today. Reality is that without the Express system, the Platte system would more than likely be in natural gas service today. Bottom line, - the Express system protected the local refining markets from local production declines and quality issues, - protected local producers access to the current local refining markets and - maintained an option for PADD IV production to leave the area.

5. Refinery Throughput Profile Rocky Mountain Region Refineries (1993 - 2005) Crude runs averaged 563 MBPD in 2005 with monthly peak levels attaining 589 MBPD-highest level ever. Several projects being completed or planned in the RM to improve refinery processing capabilities Crude Tower Utilization Crude Tower Capacity Refinery Runs

6. KinderMorgan Market Realities Producers generally receive higher netbacks in the local markets for their production. Domestic oil that does move out of the region on a regular basis is generally moved out of the PADD IV area for the following reasons; - to markets that desire a specific crude types for it’s yield characteristics, - where production fields are logistically challenged or - from production fields where the production has only a limited appeal in the local refining market. Local refiners need access to a mix of crude oil types beyond what is available in local market to balance out their operations. Local refiners generally have to pay a higher price relative to domestics for the imported sweet grades. Platte system has a capacity of about 143,000 b/d east of Guernsey, Wyoming. Canadian oil movements down the Express system and then east on the Platte system averaged 60,000 b/d in 2004 and just under 100,000 b/d in 2005, (after the Express system expansion). Domestic movements east on the Platte system averaged less than 20,000 b/d in 2004 and less than 30,000 b/d in 2005.

7. Kinder Morgan Current Market Environment Through the end of 2005, the Platte system still had available capacity to move normal nomination volumes of domestic crude out of the PADD IV region. Moving surplus domestic crude production out of the PADD IV area via the Platte system wasn’t a problem for crude producers until the first of this year. The current situation is more a function of short-term events within the local refining community than due to any severe inability of the pipeline systems to accommodate the local production under normal circumstances. Rocky Mountain refiners have reduced or temporarily idled their operations for; - scheduled or required maintenance reasons and - to retro-fit equipment to meet the newest clean fuel specifications. Canadian crude oil movements into the PADD IV area during this time frame have actually decreased significantly, at a substantial cost to firm shippers. Once the refinery work is completed and the facilities come back to full operations, we would expect that the current proration situation on our system to be significantly reduced if not even eliminated.

8. Refinery Runs Production History Forecast Rocky Mountain Crude Production Trends and Outlook 2005, MBPD Non-core supply consists primarily of crude supply in North Dakota, Southern Utah and Southern Colorado that is used by refineries outside of the RM region. Some of this crude can and has been shifted to RM refinery markets. Crude Deficit Non-Core RM supply APPROXIMATE CONTRIBUTION FROM NEW PLAYS ( UT & MT) RM Core Supply : directly accessible by RM refiners APPROXIMATE CONTRIBUTION FROM NEW EOR INVESTMENT Average forecast decline (-%) Core area=Production that is accessed by RM refineries; non-core=S UT, S CO and ND

9. Kinder Morgan Kinder Morgan - is in the business of transporting crude oil, - is interested in expanding our system into new markets outside of the region if there is a demonstrated need and - will move aggressively to develop a solution to the Rocky Mountain oil producing community’s logistical requirements with their support. Kinder Morgan recently announced plans to build a grass roots gas pipeline, the Rockies Express Pipeline. - system is 1,323 miles long and 42” in diameter - system will move 1.8 BCF of natural gas out of the PADD IV region - the 1st leg of the project is slated to be in service by January 2008 - system will cost 3 billion dollars - we are not afraid to develop projects that address market needs Continued growth in oil production into the future could present challenges. Kinder Morgan looks forward to talking individually with those producers that want to address their specific needs in the context of an industry solution. Rob Garner, Manager U.S. Business Development Ph # 801-393-7680