West Coast Sequestration Partnership

Kick-off Meeting 9/29-30

September 2003 WC Seq. Partnership 2

KinderMorgan

Started in mid-1990’s as mid-stream energy firm.

KMI/ KMP total enterprise value over $20 bn

Large natural gas p/l, product p/l, bulk terminals, and CO2 supply, transportation, and EOR.

Purchased CO2 division from Shell in 2000. Added SACROC field 2001, reviewing Yates.

September 2003 WC Seq. Partnership 3

KM CO2 Business Focus

KM CO2 focus solely on CO2 assets – source, supply,

EOR, and sequestration infrastructure development.

Largest transporter of CO2

Largest owner CO2 assets

One of largest CO2 EOR companies.

International sequestration/ EOR developments.

September 2003 WC Seq. Partnership 4

Kinder Morgan System MapKinder Morgan System Map

NGPL

NGPL Storage

Retail Natural Gas Division

Products Pipelines

Products Pipeline Terminals

Transmix Facilities

Natural Gas Pipelines

Natural Gas Storage

Natural Gas Plants

Gas-Fired Power Plants

CO2 Pipelines

Terminals

Indicates # of Facilities in area

(2,3,10) Kinder Morgan Headquarters, Houston, Texas

2

3

2

4

10

2

2

2

2

KMC

O2

PACIFIC COCHIN

PACIFIC

PACIFIC

CALNEVNORTH

PLANTATION

CFPL

KMIGT

KMTP

KM TEJAS

2

NGPL

3

September 2003 WC Seq. Partnership 5

Houston

Denver

SheepMountain

BravoDome

Horseshoe Atoll

SACROC Unit

McElmoDome

LEGENDCortez Pipeline

Sheep Mountain

Pipeline

Bravo Pipeline

CO2 Distribution

System

COCO22 System Map System Map

September 2003 WC Seq. Partnership 6

U.S. CO2 Flood Areas

Weyburn Gasification

PermianBasin

x

Labarge

September 2003 WC Seq. Partnership 7

Industry Consumption

Seventeen oil field operators in the Permian Basin utilize CO2 in more than 50 projects

ChevTex Hess Other

Oxy

ExxonMobil

KM CO2

BP

Permian Basin in West Texas constitutes approx.85% of EOR via CO2 flooding.

September 2003 WC Seq. Partnership 8

CO2 for EOR: The Net Effect

Reservoir Characteristics

Oil Price

CO2

OwnerInterest

People

Other

Potential CO2 FloodCandidates

U.S. Oil Reserves

September 2003 WC Seq. Partnership 9

Sequestration Dynamics

Sequestration

EORSite

StorageSite

Carbon Capture

TransportationInfrastructure

Meter/ Monitor & Measure

Step 1:

Get it.

Step 3:

Store/Use it

Step 2:

Move it.

Step 4:

Control it

Political/Policy

Legal

EnvironmentHealthSafety

Economic

Commercial

September 2003 WC Seq. Partnership 10

Experience Scope

Pipelines

Sourcing/ compression

Metering/ operations

EOR

EHS