Lower Valley Energy Natural Gas Pipeline Update

1. Lower Valley EnergyNatural Gas Pipeline Update Hoback Canyon Pipeline Wyoming Oil and Gas Commission October 25, 2005

2. Lower Valley Energy • John Hoback – Guide of the Astorians • History - 1995 – PSC Certificate • Ground Breaking Ceremonies • July 8, 1996 Afton • August 29,1996 Jackson • Gas Service started late fall of 1997

3. Lower Valley Energy LNG Tank Yard

4. Truck Unloading Facilities

5. Lower Valley Energy • 10,000 gallon delivery increments • Jackson Deliveries – 1 truck every other day in summer – 3.5 trucks per day in winter (record is 6 on one cold winter day) • Afton Deliveries – 1 truck per week in summer – 2 per week in winter

6. Ambiant Air Vaporizors

7. A Look Inside

8. Vaporizors at Work

9. Control Facility with Backup Generation and Boilers

10. Gas Leaves Plant for Jackson Usage

11. Lower Valley Energy • 2003 usage – 4,875,720 gallons LNG • Equivalent to 402,819 Mcf or 500 trucks LNG • Average 1.5 Mcf per day in summer & 2.5 Mcf per day in winter • Projected usage by 2010 – 6,590,150 gallon LNG • Equivalent to 544,461 Mcf or 665 trucks LNG

12. Lower Valley EnergyHoback Canyon Pipeline The Basics: • 49.7 miles of 6” natural gas pipeline • Pipeline begins at William’s Merna tap, travels through Bondurant, the Hoback Canyon, over Camp Creek Saddle and terminates at Jackson, Wyoming • 10.6 miles of parallel highway construction through Hoback Canyon • Route is 58% USFS, 2% State & 40% Private

13. Proposed Natural Gas Pipeline Hoback Canyon Pipeline

14. Lower Valley EnergyHoback Canyon Pipeline • Draft EIS due out this fall • Currently purchasing needed private ROW • 3rd Party WYDOT Review • PSC Certificate of Public Convenience and Necessity • Planned for construction in summer/fall 2006 • Operational by late 2006

15. Lower Valley EnergyHoback Canyon Pipeline Update Questions & Comments Chad Jensen Vice President Lower Valley Energy 307-885-3175