1 LAND RECLAMATION WORKSHOP – ROCK SPRINGS, WY, MAY 31, 2009 Wyoming Pipeline Authority, Colby Drechsel
What is the WPA? 2 � Board of Directors appointed by Governor � Mission (i) to promote the infrastructure necessary to produce oil and gas assets of the state and (ii) to promote access to high value markets � If it can move in a pipeline, its within our charter � Not a regulatory, enforcement, rate making or policy setting body
Rockies Historical Export vs. Capacity Net Supply for Export Capacity Surplus MMcfd HH 3.63 Opal 2.55 ∆ -1.08 3 Source: El Paso Corporation
Impact of Major Export Capacity Additions 1.00 Kern REX +965 0.00 +1,400 (1.00) $ Per MMBtu (2.00) (3.00) (4.00) Cheyenne (5.00) Plains +160 (6.00) Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 4 Source: Platt’s Daily Price Guide
Why do the disposition and price of Wyoming natural gas matter to you? 5 � 20 out of 23 counties produce NG � 50% state revenues derived from NG taxes � $1 differential = $236 million for 2008
• Approx. 25,000 miles • Over $9bn in contract commitments since 2001 • Another $3bn in commitments pending proposed projects, Fall 2008 6
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Proposed Additions to Capacity out of Wyoming (as of March 2009) Western Canadian Sedimentary Basin 5-6 9 4 7 3 8 Name Sponsor Capacity 2 1 Kern Kern 145 2 Ruby El Paso 1300+ 1 3 Bronco Spectra 1000 4 Sunstone Williams 1200 /TCPL/Sempra 5 Bison TCPL (frmly NB) * 6 Pathfinder TCPL 1200 7 Rockies Alliance/Questar 1300 Not all of these Alliance projects will be built 8 Chicago Kinder Morgan 1200 Express * Bison (406 MMcfd) rolled into Pathfinder 9 Grasslands Williston Basin PL 75 8
Regulations and market challenges 9 � Cost of skilled labor � EA � Materials � EIS � Price of commodity � Drilling permitting � Gas on gas � ROW competition � Creative writing for redefining multiple use
If it has color . . . 10
Recent Federal Legislation H.R. 146 Omnibus Public Land Management Act of 2009 � Formerly S. 2229, withdraw federal land from the Wyoming Range/BTNF, retires ‘select’ leases � HS. 2879, designed to slow down production on the Roan Plateau, CO � NEPA paralysis
Wyoming Range/BTNF Undiscovered potential � 918 Bcf � 39 MMBO � 57.3 MMB NGL Source: USGS, February 2004
Roan Plateau � 9 Tcf recoverable natural gas � Est. 4 million homes for 20 years
FERC preFiling Process Timeline 14 Source: Questar Pipeline Company
Project Timeline Comparison 15 Source: Questar Pipeline Company
16 Source: Piceance Basin Expansion Project, Final EIS, August 2005
Pipeline under construction 17 Source: Brian Jeffries photo
Reclaimed 18 Source: Brian Jeffries photo
Multiple use 19 Source: Brian Jeffries photo
How does the WPA help you? 20 � Play matchmaker � Regulatory support � Financial support � Legislative support
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www.wyopipeline.com 22
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