1 Energy Facility Project Drivers Wyoming Pipeline Authority July 2006.

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Energy Facility Energy Facility

Project DriversProject DriversWyoming Pipeline AuthorityWyoming Pipeline Authority

July 2006July 2006

Energy Facility Energy Facility

Project DriversProject DriversWyoming Pipeline AuthorityWyoming Pipeline Authority

July 2006July 2006

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UniField ProfileUniField Profile UniField ProfileUniField Profile• Markets

• 70% Power Generation, Hydrocarbon, Basic Chemicals

• 20% Cement, Minerals &

Metals• 10% Advanced Materials &

Specialty Chemicals

• Distribution• West & Upper-Midwest • Billings, Vancouver WA• Bismarck• 10% annual growth

• Product • Process Facility Capital Projects• Up to $250MM• Facility Revamp & Expansion• Pilot & Demonstration Plants• Technology Support – Not a Driver

• History Hydrocarb, Power & Metals - ’87 Intl Process Technology - ’96 Specialty Chem - WA in ’97 ND & MN - ’04 “Leader of Industry Followers”

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25 Yr Market Profiles25 Yr Market Profiles

Petroleum Refining

Industrial/Commercial

Power Generation

Oil & Gas

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Regional ProfileRegional Profile WY & Dakotas

– Fossil Resources– No Markets– Market Access Impediments – Open to Development

WA, OR, UT & Idaho– Few Fossil Resources– Hydro & Wind– Mod to Large Markets– Less Open to

Development

Montana– Fossil Resources– No Markets– Long Distance to

Markets – Less Open to

Development

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Petroleum RefiningPetroleum Refining 1970’s: Arab Oil Embargo - Bought Coal, Oil Shale & started SynFuels.

1980’s – 90’s: EPA Solid Waste Mandates – Cleanup, Closures & Consolidation – Adapted Gasification & Sold Coal Reserves.

2000 - 04: EPA Air Mandates - Low Sulfur Diesel & Gasoline Investment – Higher Natural Gas & Hydrogen Demand – Tighter Fuel Supplies & Higher Prices – Ethanol Production & Blending.

2004 - 05: Political Instabilities - Higher Crude & Fuel Prices – Coker Upgrades & Conserv – Consider Coke Gasific – Ethanol Speculation

2006 - 10: Better Syn-Crude Supply – Crude Unit Upgrades - Higher Fuel & Coke Supply in Rockies – Liquid Pipeline Expansions – Start of Gasification & Cellulose Ethanol Projects.

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Industrial & CommercialIndustrial & Commercial 1970’s – 80’s: Large Central Stations – Low Power Prices - Small Coal-fired

Plants Closed & Low Cogeneration Starts - Conversion from Coal to Gas – Low Capital Spending.

1990’s - 02: Low Gas Supply & CAA Compliance – Industrials Convert from Gas to Coal – PRB Coal Development & Prices Increase - Rail Transportation Tightens – High International Capital Spending.

2003 - 05: High Fuel & Power Prices – Some Convert from Coal to Coke – Aluminum & Metals Move Offshore - Wind, Biomass & Solar Considered – Unprecedented Industrial Spending.

2006 - 10: Fuel & Power Prices, Tight Transport & Global Warming Concern – Coal Cogeneration at all Scales – Green Buildings, LEED & EnergyStar Increase - CHCP, Solar & Conservation Projects – Tighter Money Supply & Lower Commodity Prices – Higher Imports.

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Power GenerationPower Generation 1970’s - 90: Low Gas Prices & Large Central Plants – High Installation of

Gas Plants - Low Installation of Coal-fired Plants – Coal CFB Commercialization.

1990’s - 02: Low Gas Supply & CAA Compliance – PRB Coal Compliance Coal Conversions – Low New Plant Construction.

2002 - 05: Blackouts - High Power Prices & Higher Gas Plant Install - Enron Cancellation of Gas Projects – Housing Construction & Gas Prices Continue – Coal Plant Construction Increase – IGCC & Super Criticals Commercialized.

2006 - 10: High Power Prices, Tight Transmission & Global Warming Concern – Continued Gas Projects & Low Coal Power Acceptance – Continued High Gas Prices - Increased IGCC, SC, CO2 Capture & Gasification – Transmission Constrained.

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Oil & GasOil & Gas 1980 - 2000: Low Gas Prices – Low onshore E&D – Development

of EOR, CO2 cycling & CBM Extraction.

2000 - 02: Low Gas Supply – Increased Gas Prices & Technology Deployment.

2003 - 05: Continued High Gas Prices & Initiation of CO2 Sequestration – Increased Production & EOR Demand –Increased interest in CO2 Capture.

2006 - 10: Tight Power Transmission, Rail & Low Coal Generation Acceptance– Stranded Coal, Coke & Lignite – High Oil & Gas Prices – EOR, Merchant & Refinery Gasification, Pre & Post Combustion CO2 control – Pipeline Capacity Expansion.

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Project DriversProject Drivers

Capital– Technology– Production Scale – Site– Escalation

Market Timing– Lead-times– Project Duration

Infrastructure– Utilities, Transportation &

Interconnect– Air permitting & Water

availability– Construction & Operating

labor

Finance– Margin– Term – Interest rate

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General 2006 – 10 General 2006 – 10 OutlookOutlook Low Acceptance of Coal-fired Power & Global Warming Concern –

Increased interest in CO2 Control – Technology Investment.

Tight Power, Rail & Pipeline Transmission - Continued High Fuel Prices - Stranded Coal, Crude, Coke & Lignite Assets – Project Investment.

Tightened International Money Supply

High Fuel & Power Prices – Increased Imports & Interest Rates – Softening in Demand, Greater Commodity Supply – Lower Margins - Decreased Technology & Projects Investment.

* Contingent on Political Stability

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Thank You.Thank You.Thank You.Thank You.