Tim Bradley President CO Group - Kinder Morgan

ENERGY PARTNERS, L.P.Strong Long Term Demand for CO 2Purchased CO 2 Demand vs. Oil Price (a)120Clean Coal and Sequestration may create newopportunities100• Sales and TransportTCF806040200$50.00 $80.00 $100.00OklahomaOther TXPermian Basin• EORHowever, economic and regulatory gaps are very large• The cost of capturing man-made made supplies isvery expensive• Carbon prices would need to be much higherthan currently being discussed$/tonne10080604020Capture Cost and affordabilityof Man-made CO 2 supplies (b)EOR Target Price @ $60-$80/bCost of CO2 AvoidedCost of CO2 Captured• Liability, public expectations and requirementsare still uncertainKMCO 2 is recognized as an industry leader• Active participant in industry studies• Active participant in several SequestrationPartnershipsWe remain engaged in new project development• Poised to respond to economic opportunities0NGCC PC Gasifier Target EORPrice__________________________(a) Source: Advance Resources International Study, 2008(b) Sources: NETL, IPCC, KM; NGCC is gas fired combined cycle; PC is Pulverized Coal; IGCC is integrated coal gasification. Cost is at plant gate and doesnot include transportation; EOR price is at oil field16