Lower Valley EnergyNatural Gas Pipeline Update

Hoback Canyon Pipeline

Wyoming Oil and Gas Commission

October 25, 2005

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

Lower Valley Energy LNG Tank Yard

Truck Unloading Facilities

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

Ambiant Air Vaporizors

A Look Inside

Vaporizors at Work

Control Facility with Backup Generation and Boilers

Gas Leaves Plant for Jackson Usage

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

Lower Valley EnergyHoback Canyon Pipeline

The Basics:49.7 miles of 6” natural gas pipelinePipeline 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

Proposed Natural Gas Pipeline

Hoback Canyon Pipeline

Lower Valley EnergyHoback Canyon Pipeline

Draft EIS due out this fallCurrently purchasing needed private ROW3rd Party WYDOT ReviewPSC Certificate of Public Convenience and

NecessityPlanned for construction in summer/fall

2006Operational by late 2006

Lower Valley EnergyHoback Canyon Pipeline Update

Questions & Comments

Chad Jensen

Vice President

Lower Valley Energy

307-885-3175