Colorado Interstate Gas Company Wyoming Interstate Company Cheyenne Plains Gas Pipeline Company Customer Advisory Group Update January 13, 2010 – Denver

Colorado Interstate Gas CompanyWyoming Interstate Company

Cheyenne Plains Gas Pipeline Company

Customer Advisory Group UpdateJanuary 13, 2010 – Denver January 14, 2010 – Houston

2

Purpose of Meeting

Provide an update on the Xpress system rewrite and plans for 2010

2010 Goals:• Accelerate the scheduling and invoicing rewrites • Make only modest enhancements to existing

Xpress system (“Legacy Xpress”)• Evaluate consolidating transportation systems for

all El Paso pipelines

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Agenda

Xpress System Rewrite Update Legacy Xpress Changes Planned for 2010Improvements to Headstation PoolsCustomer requests for changes to Legacy Xpress

Questions Contacts Appendix

Xpress System Rewrite Update

Janice ParkerVice President

Customer Services

Kate OlsonPrincipal

Customer Service

Kathy RoyalManager

NAS Solutions

Xpress System Rewrite Update

Adjusted TimelineNominations and Scheduling ChangesGas Accounting Changes

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Xpress System RewriteOriginal Plan

Original goal of completely rewriting Xpress by September 30, 2011Phased approach New system framework / functionality (2009) √ Streamlined Security system (2009) √ Allocations and Storage system – Customer

access (July 2009) √ Remaining core systems

2010 – Contracting, Imbalance, Invoicing 2011 – Capacity Release, Nominations, Scheduling

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New Company InitiativeConsolidating Transportation Systems

El Paso’s vision for the future is focused on More standardization Leveraging best practices Using economies of scale

One key initiative will be preliminary assessment of a consolidated transportation system for all El Paso pipelines January-July 2010 analysis phase August 2010 decision phase Ensure 2010 Xpress changes add value

Original plan for Xpress is being modified

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Xpress System Rewrite Revised Plan

2010 Goals for Xpress Enhancements Deliver value in 2010 Minimize risks of older technology Improve accuracy

2010 Revised Plan for Xpress Rewrite Scheduling Rewrite – Kathy Royal, business lead Invoicing Rewrite – Sally Wood, business lead

Dedicating resources during Analysis Phase for a consolidated system

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Xpress System RewriteSystem Consolidation Analysis

CIG Pipelines Analysis TeamSally Turley, Contracts and Capacity Release Edgar Trillo, backfill for day-to-day management

John Driscoll, Nominations and Scheduling Julie Adams, backfill for day-to-day management

Mary Sue McNeal, Customer Services Kate Olson, backfill for day-to-day management

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Xpress System Rewrite Nominations & Scheduling

Focus on redesigning and rewriting: Capacity Allocation Balancing Confirmation Processes Graphical Pipe Screen

Accelerated Implementation - November 2010

Rewrites to Scheduling screens and reports will be delayed until decision about consolidated system

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Xpress System RewriteNominations & Scheduling

What’s in it for Our Customers Flexible receipt and delivery point scheduling

(automated and enhanced flow day diversion)

Changing ranks effectively during all cycles

Additional Reduction Reason Codes

Consistent and understandable scheduling results

Stable scheduling module

Xpress System RewriteCustomer Impact

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Customers enter nominations and confirmations using existing screens NO CHANGE

CIG Schedulers process transactions using enhanced tools and processes

Adds Reliability, Flexibility and Accuracy

Customers use existingreports NO CHANGE

13

Xpress System RewriteFlexible Receipt and Delivery Point Scheduling

Support nomination changes to key elements in subsequent intra-day cycles without losing previous cycle scheduling priority Change your receipt points, delivery points, or both Change ranks each cycle Change your upstream and downstream contract/DUNS

Change your package ID

Just a note: nominations scheduled through a new constraint may still have reductions and EPSQ rules will still apply

Exceeds the requirements of the new NAESB standard for receipt and delivery point flexibility (1.3.80)

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Xpress System RewriteAdditional Reduction Reason CodesCode Description Definition

BMPNEW

Quantity Reduced Due To Bumping When a previously scheduled (in the Timely or Evening cycles) Interruptible nomination is reduced to allow new (incremental) Firm (primary capacity, flow path secondary or secondary) nominations to be scheduled in the Evening and/or Intraday 1 cycles.

CRDNEW

Confirmation Not Conducted by Downstream Confirming Party

When a delivery point operator does not conduct a confirmation at a point, the Transportation Service Agreement (TSA) nomination or pool on the pipe is reduced to zero with a CRD reduction reason code.

CRE Capacity Recalled When a Releasing Shipper recalls capacity in the Evening, or intra-day cycles, which results in a reduction of previously scheduled Acquiring Shipper quantities.

CRRNEW

CRR – Confirmation Not Conducted by Upstream Party

When a receipt point operator does not conduct a confirmation at a point, the TSA nomination or pool on the pipe is reduced to zero with a CRR reduction reason code.

FMJNEW

Force Majeure When the pipeline has an interruption in transportation service (i.e., the inability to transport gas at published operationally available capacity levels) during the Evening, Intraday 1, and/or Intraday 2 cycles (does not occur in the Timely cycle). This reduction can cause previously scheduled quantities to be unscheduled.

Update - We will not plan to do this one at this time.


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GQSNEW

Gas Quality Specifications Not Met When either 1) A point operator is not able to deliver gas within the specified Tariff quality limits or within limits that are acceptable to downstream parties, or 2) A point operator refuses to accept gas for quality reasons.

HRY Hourly Service Entitlement Reduction When two or more HEEN nominations on the same contract exceed the contract MDQ.

NGDNEW

Downstream Operator confirmed a zero for the nomination(s) transaction

When a delivery point operator specifically confirms zero for a nomination, the transaction on the pipe is reduced with an NGD reduction reason code

NGUNEW

Upstream Operator confirmed a zero for the nomination(s)

The Service Requester is told by its Transportation Service Provider that the upstream Service Requester did not have the gas or submit the nomination.

PCC Pipeline Capacity Constraint

When nominations are reduced as a result of 1) nominated quantities exceeding normal operationally available capacities at receipt, delivery, and/or choke locations, or 2) when nominated Imbalance Payback nominations exceed allowable limits.



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PLMNEW

Pipeline Maintenance When the standard operationally available capacity at a receipt, delivery, and/or choke is lowered to allow for planned pipeline maintenance and results in reductions to nominations.

PRD Confirming Party Reduction at Delivery Location

When the downstream operator confirms less than the quantity being requested by the shipper or pooler but the confirmed quantity is greater than zero, those nominations will be reduced with a PRD reduction reason code

PRR Confirming Party Reduction at Receipt Location

When the upstream operator confirms less than the quantity being requested by the shipper or pooler but the confirmed quantity is greater than zero, those nominations will be reduced with a PRR reduction reason code.

QER Quantity Exceeds MDQ of Associated Contract

This applies mostly to nominations involving WIC’s capacity on Overthrust and Cheyenne Plain’s capacity on WIC. When noms exceed WIC’s or Cheyenne Plains’ entitlement on the off-system pipe (Overthrust or WIC).

UPDNEW

Underperformance of Confirming Party at Delivery Location

When the downstream interconnect operator confirmations exceed the quantities actually being taken off the pipeline.

UPR Underperformance of Confirming Party at Receipt Location

When the upstream interconnect operator confirmations exceed the quantities actually being delivered into pipeline.

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Xpress System RewriteGas Accounting

Allocations (New) System provided to customers in July 2009 Allocations Storage Allocations (query capability added Oct 2009) Customer-designed Allocation Reports Significant query capability

December 2009 Enhancements Create shared query; only originator can change query Set a default query Customize query display Change application colors

Requested report enhancements in progress

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Detailed materials posted on the CIG EBB Go to the Informational Postings section, click on

Other, then on Informational Look up, and finally on Training Materials

The file is named Xpress (new) Roll out 2009.pdf

Kate Olson and Troy Jackson are available to provide one-on-one training on the new Xpress Allocation System. Please call them at 1-866-523-4243 to schedule a date and time for training at your office.

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New Imbalance and Invoicing System Accelerated implementation: October 2010

New query capability including drilldown features

Imbalance report will be separate from invoice

Canned reports requested by customers

Consolidated reporting location

Upgrades oldest technology in the Xpress system

Legacy Xpress ChangesPlanned for 2010

Kathy RoyalManager

Nominations and Scheduling Solutions

Legacy Xpress Changes Planned for 2010

Improvements to Headstation Pools Customer Requests Location versus Headstation Pools Pros and Cons Our Proposed Solution Discussion and Decision

Remaining Customer Requests Only High-Value Improvements Planned for 2010 Many Requests Deferred for Later Assessment

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Legacy Xpress Changes Planned for 2010Customer Requests

Requested Headstation Pool Enhancements Easier Pool-to-Pool trading Pooling regions that match market needs Simpler, easier way to submit pool nominations Better tracking Now

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CurrentLocation versus Headstation Pools Status

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Pooling Characteristics Location Pools Headstation Pools

Allow aggregation and disaggregation of gas Yes Yes

Aggregate from multiple supply locations Yes

Manage supply and market transactions at a higher level of detail Yes Yes

Buy direct from the producer and sell directly to the shipper Yes Yes

Follow pooler priorities (ranks) when underconfirmations are applied Yes Yes

Free service offered by CIG and available for all locations Yes Yes

Can transport (with TSA) from one Pool or Pooling Area to another Yes Yes

Number of Pooling agreements required to serve pooling needs 1 2

Downstream has assurance that gas is from mainline or lateral Yes

Logical and easy-to-use Pooler Nomination screens Yes

Complete transactional tracking Yes

Conduct Pool-to-Pool Trading without Transportation Service Agreement Yes

Can mask supply points from downstream parties Yes

Offer optimum customer service for your customers (fewer transactions required for them when you source from multiple supply locations) Yes

All trading parties stay “in the loop” with reports from Xpress Yes

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Legacy Xpress Changes Planned for 2010 Easier Pool-to-Pool Trading

Eliminate requirement to designate aggregate and title transfer tracking poolsUse only one pooling account to aggregate supply, disaggregate supply, and trade with another pool

1

1

1

1

1 11

1

1

1

1

1

1

1

1

GWN

KHF KDW RS3

GWW

PCL

WDW

CGL

WDD

LCC1

OB5

BHN

ELC

RD7

1

LRC CS9

Current North Headstation Pool

North Headstation PoolNorth Park and Lend

(NHP)/(NPL)

PR8

Headstation Pool -

Constraint Point – 1

1

1

1

1

1 11

1

1

1

1

1

1

1

1

GWN

KHF KDW RS3

GWW

PCL

WDW

CGL

WDD

LCC1

OB5

BHN

ELC

RD7

1

LRC CS9

Proposed Changesto HeadstationPooling Areas


(NHP)/(NPL)

PR8

Headstation Pool -


1

1

1

1

1 11

1

1

1

1

1

1

1

1

GWN

KHF KDW RS3

GWW

PCL

WDW

CGL

WDD

LCC1

OB5

BHN

ELC

RD7

1

LRC CS9


Uintah Headstation PoolUintah Park and Lend (1HP)/(1PL)


(NHP)/(NPL)

PR8

Headstation Pool -


1

1

1

1

1 11

1

1

1

1

1

1

1

1

GWN

KHF KDW RS3

GWW

PCL

WDW

CGL

WDD

LCC1

OB5

BHN

ELC

RD7

1

LRC CS9



Wind River Wet Headstation PoolWind River Wet Park and Lend

(2HP)/(2PL)


(NHP)/(NPL)

PR8

Headstation Pool -


1

1

1

1

1 11

1

1

1

1

1

1

1

1

GWN

KHF KDW RS3

GWW

PCL

WDW

CGL

WDD

LCC1

OB5

BHN

ELC

RD7

1

LRC CS9




(2HP)/(2PL)

Wind River Dry Headstation PoolWind River Dry Park and Lend(3HP)/(3PL)


(NHP)/(NPL)

PR8

Headstation Pool -


1

1

1

1

1 11

1

1

1

1

1

1

1

1

GWN

KHF KDW RS3

GWW

PCL

WDW

CGL

WDD

LCC1

OB5

BHN

ELC

RD7

1

LRC CS9




(2HP)/(2PL)

Wind River Dry Headstation PoolWind River Dry Park and Lend(3HP)/(3PL)

Powder River Headstation PoolPowder River Park and Lend (4HP)/(4PL)


(NHP)/(NPL)

PR8

Headstation Pool -


Redefine North Headstation Pool Areas

Legacy Xpress Changes Planned for 2010New Screens and Tracking

Headstation Pool screens updated to have same look and feel as current Location Pool screens UPDATED Headstation Pooler Confirmation Screen NEW Supply Status Screen NEW Market Status Screen NEW Supply Tracking Screen NEW Market Tracking Screen

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Pooler Confirmation Screen same as Location Pool

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Legacy Xpress Changes Planned for 2010HSP Screens Look and Feel

Supply Status Screen same as Location Pool

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Market Status Screen same as Location Pool

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Supply Tracking Screen same as Location Pool

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Market Tracking Screen same as Location Pool

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ProposedLocation versus Headstation Pools Status

33* With implementation of proposed changes

Pooling Characteristics Location Pools Headstation Pools

Allow aggregation and disaggregation of gas Yes Yes

Aggregate from multiple supply locations Yes

Manage supply and market transactions at a higher level of detail Yes Yes

Buy direct from the producer and sell directly to the shipper Yes Yes

Follow pooler priorities (ranks) when underconfirmations are applied Yes Yes

Free service offered by CIG and available for all locations Yes Yes

Can transport (with TSA) from one Pool or Pooling Area to another Yes Yes

Number of Pooling agreements required to serve pooling needs 1 1*

Downstream has assurance that gas is from mainline or lateral Yes Yes*

Logical and easy-to-use Pooler Nomination screens Yes Yes*

Complete transactional tracking Yes Yes*

Conduct Pool-to-Pool Trading without Transportation Service Agreement Yes

Can mask supply points from downstream parties Yes

Offer optimum customer service for your customers (fewer transactions required for them when you source from multiple supply locations) Yes

All trading parties stay “in the loop” with reports from Xpress Yes

Today’s PoolingShipper Buys at Many Location Pools

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BLF

ES2

BKF

FRD

LOS

DOR

KIN

KAN

LP TSA

LP TSA

LP TSA

LP TSA

LP TSA

LP TSA

LP TSA

LP TSA

TSA – Shipper’s Transport LP – Location Pool HSP – Headstation Pool

Shipper manages supply at a lower and more

complex level of detail

New Pooling ParadigmShipper Buys from One Headstation Pool

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BLF

ES2

BKF

FRD

LOS

DOR

KIN

KAN

HSP HSP TSA

Shipper manages supply at a higher and simpler level of detail

Shipper manages supply at a lower and more

complex level of detail

TSA – Shipper’s Transport LP – Location Pool HSP – Headstation Pool

LP TSA

LP TSA

LP TSA

TSA

LP TSA

LP TSA

LP TSA

LP TSA

LP

Staying in the accounting loop

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BKF

KIN

BLF

Pooler 1

NHP

TSA1Pooler 2

NHP

TSA2Pooler 3

NHP

TSA3Pooler 4

NHP

TSA4

TSA – Downstream Shippers’ Transport NHP – North Headstation Pool

Basic Supply Pools

RLOC NHP TSA DLOC

RLOC NHP TSASHP DLOCTSA

RLOC NHPTSA NHP DLOCTSA

RLOC LP TSA DLOC

RLOC NHP DLOCLPTSA

RLOC NHP NHP DLOCTSA

TSA – Shipper’s Transport LP – Location Pool NHPSHP

– North Headstation Pool or South Headstation Pool

Impact of constraints upstreamof the Headstation Pool

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BKF

KIN

BLF

Pooler 1

NHP TSA1

TSA22000

5000

Kanda West Constraint

Laramie East Constraint

At Kanda West, Pooler 1 is evaluated based on the contractual rights (primary or secondary) of TSA2 and the Secondary rights of TSA1 (because of the Pool-to-Pool configuration, we do not translate entitlements through a pooling stream).

At Laramie East, both Shippers are evaluated based on their contractual entitlements.

Pooler 2

NHP

TSA1 & TSA2 – Firm Transportation Agreements NHP – North Headstation Pool

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More Headstation Pool Information

Mike Baker is available to provide one-on-one training on Headstation Pools and/or any other Nominations and Scheduling topic. Please call him at (719) 520-4733 to schedule a date and time for training at your office.

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Legacy Xpress Changes Planned for 2010Improvements to Headstation Pooling

Customer Decision PointRecap of Headstation Pool Proposal New Pooling Areas More Flexibility New Screens

Decision Point If customers see the value, we are proposing these

changes for implementation in 3Q 2010

Please refer to the Meeting Minutes posted under this same folder for an update on the revised proposal by CIG based on customer feedback

Other Requested Changes

Curtis ClaarSupervisor

Nominations and Scheduling Solutions

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Additional Legacy Xpress ChangesCustomer Requests

Proposed for implementation during 2010, as resources are available Make Contract Tracking Report at entity level Create Interconnect Operator Reduction Report to display all

transactions for locations having reductions (CIG Proposal is to offer existing Interconnect Operator Report at entity level)

Show requests to operators after the nomination is saved Add Ranks and Reduction Reason Codes to Contract

Tracking Report Provide a copy option on the One Receipt One Delivery

screen

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Additional Legacy Xpress ChangesCustomer Requests

Status of all customer requests in attached Appendix

Further changes to Legacy Xpress need to be set aside so we can remain focused on the Scheduling Rewrite and the Consolidated System analysis

Customer input will be used during Consolidated System analysis to achieve best practices

If Consolidated System is not pursued, CIG will finish rewrite of Xpress in 2011

Recap of 2010 Plan for Xpress Changes

Xpress System Rewrite Adjusted timeline Nominations and Scheduling Changes Gas Accounting Changes

Changes to Legacy Xpress Pool-to-Pool Minimal High-Value Changes Focus on Consolidated System Review

Questions and Next Steps

44

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CIG Contact Information

MarketingWill Brown, Director(719) 520-4250

Contracts and Capacity ReleaseEdgar Trillo Tonie Stephens(719) 520-4453 (719) 520-4847

Nominations and SchedulingJulie Adams Curtis Claar, NAS Solutions John Driscoll, Manager(719) 520-4326 (719) 667-7516 (719) 520-4471

Customer Service (Allocations, Imbalances, and Invoicing)Kate Olson Troy Jackson Mary Sue McNeal,

Manager(719) 520-4784 (719) 520-4705 (719) 520-3766

Appendix

Changes Requested by CustomersCompleted Changes

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Changes Requested by Customers

Requests are Sorted by Customer Priority High Medium Low

Proposed Resolution for Each Request Legacy Xpress: Implement in 2010 Possible Monthly Release: As resources allow Xpress Rewrite: Implement in 2010 Assess Later: Re-assess in 4Q 2010 after

scheduling rewrite and system consolidation decision

Not Planned: Removing from the list

48

High Priority Customer Requests

Customer RequestLevel of

EffortCIG Plan to

Address

Enable Pool-to-Pool at Headstation Pools High Legacy Xpress

Display reduction reason codes consistently across the transaction stream through the pooling nominations High Xpress Rewrite

Flow Day Diversion (Flexible Receipt and Delivery Locations) High Xpress Rewrite

Follow Ranks in later cycles High Xpress Rewrite

Make Contract Tracking Report available at the Entity Level Medium Possible Monthly Release

Enable Pool-to-Pool at Location Pools High Assess Later

49

Medium Priority Customer Requests


EffortCIG Plan to

Address

Create Interconnect Operator Reduction Report (CIG proposal is to offer existing Interconnect Operator Report at entity level) Medium Possible

Monthly Release

Show requests to operators after the nomination period is closed High Possible Monthly Release

Add Ranks and Reduction Reason Codes to Contract Tracking Report Medium Possible

Monthly Release

Enhance the Nominations Tracking Report High Assess Later

Provide Storage account owners ability to view third-party noms Medium Assess Later

Improve navigation of Xpress, including consolidation of buttons and screens, and limiting drill downs Medium Assess Later

Add grand totals to Flow Day Information screen Low Assess Later

Add Reinstatement to Capacity Allocation process High Assess Later

Add pooling at all off-system WIC virtual points High Not Planned

50

Low Priority Customer Requests


EffortCIG Plan to

Address

Create Wyoming, mainline-only Headstation Pool (CIG proposes achieving this by adding Headstation Pools to the laterals) Medium Legacy Xpress

Provide a copy option on the One Receipt One Delivery screen Low Possible Monthly Release

Streamline the online APAL Payback Process. Provide easier date entry, etc High Assess Later

Give advance notice of what paybacks Gas Control will be allowing for the upcoming gas day. Medium Assess Later

Enable customers to subscribe to Critical Notices, Non-Critical Notices or both. Medium Assess Later

Send confirmation reports only when there are nominations. Medium Assess Later

Create new HEEN Daily Detail report Medium Assess Later

Provide more readable email of the Interconnect Operator Confirmations Report Medium Assess Later

51

Low Priority Customer Requests

Customer Request EffortCIG Plan to

Address

Enable the customers entering requests for NNT overrun to select new contracts when their requests involve the subsequent month.

Low Assess Later

Add HEEN summary screen similar to Flow Day Information screen. High Assess Later

Add the ability to change entity or pipeline for more convenient report viewing. High Assess Later

Make all reports printable at once instead of requiring separate requests for each. High Assess Later

Add reinstatement after underconfirmations. High Assess Later

Autopopulate DUNS numbers associated with off-system upstream and downstream contracts on a nomination High Assess Later

Allow CIG Schedulers to correct mismatched nominations after the nomination deadline. Medium Not Planned

Completed NAS Items Completed Notice #

Automatic download of VISA data 12/18/2009 7948

Phase 4 of the new Informational Postings Enhanced Customer User Interface to provide shippers improved functionality on the Posted Imbalances and Gas Quality Data pages

12/7/2009 7935

Phase 3 of the new Informational Postings Enhanced Customer User Interface to provide shippers improved functionality when using the Unsubscribed Capacity page

10/13/2009 7881

Enforce EPSQ in and through Pools (Phase 4: Confirmations) 9/22/2009 7862

Enforce EPSQ in and through Pools (Phase 3: Allocations) 9/15/2009 7856

Phase 2 of the new Informational Postings Enhanced Customer User Interface to provide shippers improved functionality when using the Transactional Reports, Locations, Storage Field Inventory, and NNT Flow Data pages.

8/18/2009 7829

Added reduction reason codes to Flow Day Information screen, new Flow Day Information report 8/11/2009 7817

Enforce EPSQ in and through Pools (Phase 2: Pool Balancing) 7/14/2009 7785

Enhancement to Xpress to allow operators to view the Contract Number, Up/Dn Contract, Up/Dn DUNS, and Shipper DUNS for each transaction listed on the Interconnect Operator Confirmation screen for all confirmation levels (Contract, DUNS-Contract, Dual Entity).

6/10/2009 7744

Phase 1 of the new Informational Postings Enhanced Customer User Interface to provide shippers improved functionality when using the Operationally Available Capacity, Index of Customers, and Notices pages.

6/9/2009 7749

Enforce EPSQ in and through Pools (Phase 1: Pooler Nominations) 5/19/2009 7717

Auto-population of C/O column in Location Pools 2/24/2009 7596

Display associated constraint point with Pipeline reductions in the Shipper nom tracking screen 2/18/2009 7590

Allow customers the option to hide transactions with zero quantities on the Location Pooling Confirmations screen.

2/18/2009 7590

Highlights of Nominations and Scheduling Changes over the last 12 months

Documents

Colorado Interstate Gas Company Wyoming Interstate Company Cheyenne Plains Gas Pipeline Company Customer Advisory Group Update January 13, 2010 – Denver