KMP Natural Gas Pipelines Bill Allison - Kinder Morgan

13KMIGT Projects / ExpansionAdvantage Pipeline: 1.3 MMDthd of coal bed methane production expected to develop in theWyoming Powder River Basin by 2004. Pipeline infrastructure exists to gather and transport this volume to theCheyenne Hub (Weld County, CO), but Cheyenne will have insufficient takeawaycapacity. Mid-continent supplies have declined, raising prices relative to Cheyenne. KMIGT is proposing a new 24”, 386 mile pipeline from Cheyenne to NGPL(eastern KS)– 330,000 Dth/d capacity, expandable to 450,000.– Utilizes available 120,000 Dth/d capacity on Pony Express from NGPL toKansas City to access higher-value markets.– $230 million capital expenditure, in-service fall 2004.– Build only with adequate through-put agreements in place.