Transcript Entrega Review

Entrega
Gas Pipeline Inc.
www.entregapipeline.com
Entrega Project Overview
Wyoming Natural Gas Pipeline Authority – June 28, 2005
Agenda
Entrega Project Overview
 Project and Facilities
 Milestones and Schedule
 Interconnects and Capacity
 Access to Markets
 Tariff and Rates
 Benefits to Wyoming
 Wrap-up
Wamsutter
Compressor
Station
Segment 2
Wamsutter to Cheyenne Hub
191 miles of 42-inch pipe
Big Hole
Compressor
Station
Meeker
Compressor
Station
Segment 1
Meeker to Wamsutter
136 miles of 36-inch pipe
Project Description
 Entrega is a new open access natural gas pipeline developed to move
Rocky Mountain gas production to Midwest markets
 FERC regulated interstate pipeline; developed with cooperation of
Bureau of Land Management and other Federal and State Agencies
 Runs from Meeker Hub in Rio Blanco County, CO through Wamsutter,
WY to the Cheyenne Hub near Rockport, CO
 FERC application requests capacity of 1,500 MMcf/d, developed in 2
phases
– Phase 1 approximately 750 MMcf/d (free flow)
– Phase 2 incremental 750 MMcf/d (compression)
Description of Facilities
 Project includes 136 miles of 36-inch pipeline and 191 miles of 42-inch
pipeline
 Maximum Allowable Operating Pressure (MAOP) of the system is 1,480
psig
 Route chosen to minimize environmental impact; 94% is adjacent to
existing pipeline and utility right-of-way
 Phase 2 will include 3 compressor stations; Meeker (11,000 HP), Big
Hole (22,000 HP), and Wamsutter (14,000 HP)
 Seven delivery/receipt meter stations at interconnects with existing
pipelines, one at Meeker, two at Wamsutter, and four at Cheyenne Hub
 22 mainline valves
 Four pig launchers and four pig receivers
Timeline of Major Milestones Achieved
8/03
Pre-Filing
Docket
Assigned
3/19/04
Open Season
Applied for
FERC
Certificate
Agmt Signed
with Pipeline
Operator
6/4/04 – 6/25/04
9/17/04
6/2/05
12/03 1/04
Project
Concept
Developed
12/04 1/05
Open House &
Local Gov’t
Meetings
Draft Env
Impact Stmt
Issued
3/29/04 – 4/8/04
2/25/05
Project Timeline (most recent update)
Phase 1
Segment 1
Construction
Phase 1
Segment 2
Construction
Aug 05 – Dec 05
Jul 06 – Nov 06
Wamsutter
to
Cheyenne
Meeker to
Wamsutte
r
1/05
12/05 1/06
12/06 1/07
FERC
Certificate
Granted
Phase 2
Construction of
Facilities
Expected 7/21/05
Apr 07 – Jun 07
Compressor
Expansion
to 1.5
Bcf/d
Note: All dates referenced above are approximate and differ from the FERC filing
Proposed Pipeline Interconnects
Wamsutter
CIG (bi-directional)
WIC (bi-directional)
Opal
Cheyenne Hub
Salt
Lake
City
EnCana Gathering
Possible
TransColorado
(bi-directional)
Meeker
Hub
Denver
CIG
Cheyenne Plains
XCEL
Trailblazer
Entrega Gas Pipeline
CIG
Cheyenne Plains
PSCO
Trailblazer
WIC
TransColorado
Entrega Pipeline Capacity
Meeker to
Wamsutter
(MMCFD)
Wamsutter to
Cheyenne
(MMCFD)
Approximate
In-Service
Date
Interim
Up to 800
0
Dec 2005
Phase I
750
750
Dec 2006
Phase 2
1,500
1,500
Jul 2007
Phase 3 (Optional)
1,500
2,000
TBD
Ultimate (Optional)
1,800
2,300
TBD
Phase
Included in FERC Application dated 9/17/04
New FERC Application and open season required
Market Pipeline Access
Midwest Market Pipelines
Western Market Pipelines
NWPL
Kern River
ANR
NNG
NGPL
PEPL
SSC
Trailblazer
Wamsutter
Opal
Cheyenne Hub
Salt
Lake
City
Meeker
Hub
Denver
Regional Pipelines
Entrega
TransColorado
CIG
WIC
Cheyenne
Plains
Greensburg
Possible Alternatives Beyond Cheyenne
Cheyenne
Hub
Midwest
Northeast
Entrega
Pipeline
MidContinent
 Ultimately, additional transportation
capacity beyond Cheyenne will be
necessary
 Entrega, in cooperation with Shipper(s)
and potential Shippers, is evaluating
alternatives
Ohio Valley
East
Louisiana
Tariff and Rates
 Open access transportation services
 Firm, Interruptible, park-and-loan, and automatic park-and-loan
 Postage stamp rates
 Electronic bulletin board
 Capacity release program
 Flexible receipt and delivery points
 Negotiated rate authority
 Recourse rates reflect capital structure and return on investment criteria
and change as the phases are completed
Tariff and Rates
Entrega Recourse Rates (as filed)
Reservation
Charge
Reservation
Charge
Commodity
Charge
Total Effective
Rate
($/Dth/Mo)
($/Dth)
($/Dth)
($/Dth)
Interim
$4.423
$0.145
$0.001
$0.146
Phase 1
$12.062
$0.397
$0.001
$0.398
Phase 2
$6.880
$0.226
$0.003
$0.229
Fuel, Lost & Unaccounted for
(FL&A) is estimated at:
Interim – 0.15%
Phase 1 – 0.15%
Phase 2 – 0.90%
Applicable and approved
surcharges such as ACA
will also apply
Economic Benefit to Wyoming
Cumulative Anticipated Economic Benefit to Wyoming
Entrega Gas Pipeline Project
Benefit
Category
Public Benefit
Year(s) Benefit
Realized
Total Anticipated
Benefit ($ million)
Ad Valorem Tax – Pipeline & Fixtures
2005 – 2011
19.2
Sales / Use Tax – (Pipe) (1)
2005 – 2007
14.1
Sales / Use / Lodging Tax – (non Pipe)
2005 – 2007
1.1
2005 – 2011
34.4
Accommodations Revenue (housing / lodging)
2005 – 2007
5.6
Retail Trade & Services Proprietors Revenue
2005 – 2007
13.4
Gross Pay for Workers – Construction (local) (1)
2005 – 2007
33.0
Total Private Benefit
2005 – 2011
52.0
Total Public and Private Benefits
2005 – 2011
86.4
Benefit Sub-Category
Total Public Benefit
Private Benefit
About 1,900 construction workers are expected to work in Wyoming;
550 are expected to be from the local (Wyoming) workforce.
Source: Pederson Planning Consultants, 2004
(1) - updated from original study
Wrap-up

Review of Project Timeline
– Segment 1 (Meeker to Wamsutter) – In Service December 2005
– Segment 2 (Wamsutter to Cheyenne) – In Service December 2006
– Phase 2 (Compressor Expansion) – In Service July 2007

The Entrega Gas Pipeline Project is good for Wyoming
– Public Economic Benefits ~ $34 million
– Private Economic Benefits ~ $52 million
– Job Benefits
– Minimal Environmental Impact

We appreciate your continued support