Gas-Electric Partnership Conference

January 2008

Copeland Scroll Copeland Scroll ®®

Gas Compression OverviewGas Compression Overview

Emerson Corporate ProfileEmerson Corporate Profile

Reciprocating, Screw and Scroll Compressors

From 1 to 140 HP

Emerson 2007 Sales of $22 BillionParent of Fisher, Rosemount, Daniel, Kato, ASCO Switch, Copeland, US MotorsCompressor Division Sales of $2.6 Billion

– World Leader In Scroll Compressor Technology & Production

– 80 Million Copeland Scroll®Compressors Sold Since 1987

• Residential & Commercial AC• Commercial Refrigeration• Oil & Gas Production (2003)

Increasing Challenges For Recovering Oil and Gas ResourcesIncreasing Challenges For Recovering Oil Increasing Challenges For Recovering Oil and Gas Resourcesand Gas Resources

Upstream Challenges Are GrowingUpstream Challenges Are GrowingUpstream Challenges Are Growing

Must Reduce Maintenance CostsIncreasing Use Of Infield Compression, With Fewer ResourcesAging, Smaller Workforce – Urgent Need For Unattended OperationTightening Emissions Regulations – State & Federal DrivenRecord Drilling, With Flat - To Declining ProductionIncreasing Pipeline Pressures Effecting Gas Production

Bottom Line…New Technologies Needed To Produce More Oil and Gas, With Less Cost

And Environmental Impact

Must Reduce Maintenance CostsIncreasing Use Of Infield Compression, With Fewer ResourcesAging, Smaller Workforce – Urgent Need For Unattended OperationTightening Emissions Regulations – State & Federal DrivenRecord Drilling, With Flat - To Declining ProductionIncreasing Pipeline Pressures Effecting Gas Production

Upstream Challenges Are GrowingUpstream Challenges Are GrowingUpstream Challenges Are Growing

Copeland Scroll ® Compression ValueCopeland Scroll ® Compression ValueChallenge Addressed Copeland Scroll Value Add

Reduce Maintenance Costs - Payback - once/year service typical, visit by exception

More Wells, Fewer Workers - Payback - more wells/operator – unattended operation

Environmental Compliance - Hermetic design eliminates shaft seal gas/oil leaks- < 5ppm oil carryover, 40-80oz/yr loss - Ultra low compressor noise - ~75 dBA at 1m

Personnel safety No external moving parts, factory pressure/leak check

Pressure Capability & Flexibility Single stage discharge pressures to 345 psig

Application Flexibility Variable speed, suction or discharge pressure control

Compressor Reliability Scroll sets “wear in, not wear out”, increased toleranceto liquid or debris contamination

~1,000 Copeland Scroll Compressors Installed Since 2003

Copeland Scroll® Oil & Gas Applications and Customers Copeland ScrollCopeland Scroll®® Oil & Gas Oil & Gas Applications and Customers Applications and Customers

Customers Applications

BP3%Conoco

3%

Devon3%

Husky63%

Other18%

Apache5%EnCana

5%

Tank VRU4%

Casing Gas64%

Conv Gas14%

Other3%

CBM15%

BP3%Conoco

3%

Devon3%

Husky63%

Other18%

Apache5%EnCana

5%

Tank VRU4%

Casing Gas64%

Conv Gas14%

Other3%

CBM15%

Comparison of Natural Gas Compression OptionsComparison of Natural Gas Comparison of Natural Gas Compression OptionsCompression Options

10

100

1K

10K

Reciprocating

Screw (Refrig)

Mono-block

Beam

Vane

Ring

Applied Horsepower Range Discharge Pressure Delivery

Screw (Air)

10

100

1K

10K

Reciprocating (1-3 stages)

Screw (Refrig)

Vane

Ring

Screw (Air)

1

Mono-block

Beam

Copeland Scroll (70-345 psig)

Copeland Scroll 10-90 HP

HP PSIG

Copeland Scroll ® Operating Map Example 30HP Compressor Module FamilyCopeland Scroll ® Operating Map Example 30HP Compressor Module Family

1. Max flow at 4800 RPM, 80 Hz.

2. Standard test conditions: 60F suction gas, 60F ambient, 0.6 SG gas, 14.7 psia = 0 psig

Copeland Scroll® Technology Hermetic Design, Fewer Moving PartsCopeland ScrollCopeland Scroll®® Technology Technology Hermetic Design, Fewer Moving PartsHermetic Design, Fewer Moving Parts

Copeland Scroll® Compression CycleCopeland ScrollCopeland Scroll®® Compression CycleCompression Cycle

Positive displacement technologyOil flooded “wet” designEfficiency similar to equally sized screwHermetically compressor-motor design, no shaft sealsBuilt for variable speed operation (2400-4800 rpm)Compression ratios to ~14

“Scroll Set”

Fixed Scroll

Orbiting Scroll

Copeland Scroll® Compression CycleCopeland ScrollCopeland Scroll®® Compression CycleCompression Cycle

“Scroll Set”

Fixed Scroll

Orbiting Scroll

Positive displacement technologyOil flooded “wet” designEfficiency similar to equally sized screwHermetically compressor-motor design, no shaft sealsBuilt for variable speed operation (2400-4800 rpm)Compression ratios to ~14

30HP Compressor “Module”

Copeland Compressor Module Major System ComponentsCopeland Compressor Module Copeland Compressor Module Major System ComponentsMajor System Components

Copeland Scroll ® Gas Compressors, Module Assemblies, Field PackagesCopeland Scroll ® Gas Compressors, Module Assemblies, Field Packages

Copeland Scroll ®Gas Compressors

Assembled Into Modules Modules As Packaged

Package Sizes: 5 to 60 HPFlow Rates: 10-500 MCFD flow ratesDischarge Pressures: 70-345 psig Applications: Conventional gas, flare/vent gas, coal bed methane, tank VRUDriver: Single or three phase grid power or gen-sets

EmersonAuthorized Packagers

New Releases and Scroll Product Development FunnelNew Releases and Scroll Product New Releases and Scroll Product Development FunnelDevelopment Funnel

Gates

=Iteration

Gate 1

&Development

Phase (2)Design

Phase (3)

TestingPhase (4)

Launch Readiness

Initial ProductionPhase (6)

3-12 Months

Production Phase (7)

InitiationProgram

Approve Capital Spending

Authorize PilotBuildApprove

Business Plan

Gate 2 Gate 3 Gate 4

Approve

Gate 5

Assessment

Gate 6

Market Research

Idea GenerationPhase (1)

Phase (5)(Pilot, CFM)

Launch

Phases

SZO56High Flow

SZV32275 PSIG

SZV26345 PSIG Encaps.

Stator

Next GenSingle Module

SZO22

SZV22

SZO44

SZV44

Low Flow Module

Open Drive

90 Hz. Max Speed For Current

Products

Single PhaseApp. Modules

Reduced AppliedCosts

Multi-Staged Modules

More TurndownCapability

400-600+ PSIG Compressors

Control Panels

Sour Gas (2%)

More Flow@ 60 PSIG

Copeland Scroll® Value StoryReducing Costs and Environmental ImpactCopeland Scroll® Value StoryReducing Costs and Environmental Impact

January 2008

Copeland Scroll Copeland Scroll ®®

Gas CompressionGas Compression