July 17, 2014 Lakewood, Colorado

Confidential Presentation

Pony Express PipelineUncommitted Shipper MeetingJuly 17, 2014Lakewood, Colorado

Introduction

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Steven Kelley – Scheduler, Oil Logistics

Pony Express Pipeline – Meeting Agenda

Introduction – Steve Kelley, Scheduler Oil Logistics

Construction Update – Doug Johnson, General Manager

Line Fill PXP Web Site – www.TallgrassEnergyLP.com Credit Application -- Break Time -- Nominations / Prorations / Scheduling Regulatory Filings / Tariff Accounting Processes – Mona Walker, Manager Operation Accounting

Tallgrass PXP Contacts

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http://www.tallgrassenergylp.com/

PXP Construction Status

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Doug Johnson – General Manager

System Map

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Pony Express Pipeline – Construction Update

• PXP Construction Update Mainline – 20”, 22”, 24” New 24” Build, Lincoln County, KS to Cushing, OK Conversion Pipe: Guernsey – Lincoln Co. KS Guernsey Station Mainline Pump Stations Hydro-test:

Conversion Pipe 19/32 sections complete New Build 4/9 sections complete

• Deeprock Terminal – Cushing, OK

• Ponca City Lateral

• Northeast Colorado Lateral (NECL) Pipeline Sterling Tank Farm

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Pony Express Terminus at Cushing• Deeprock

Tanks• 3 existing tanks• 6 new tanks completed

Twin 24-inch pipelines to connecting terminals

Interconnections Tariff includes delivery to Rose Rock, Blue Knight, Enbridge,

Plains, or Enterprise

Additional fee by Deeprock for deliveries to:• NGL• Seaway

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Pawnee Lateral - 13 miles of 16”Buckingham Lateral - 54 miles of 20”

Sterling Tank Farm – 6 new tanks under construction. 4 – 250,000 2 – 150,000

5 additional pump stations on the PXP mainline.

NECL Northeast Colorado Lateral – Sterling

Line Fill Process

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System Map

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Line Fill

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Three pipeline segments: 20”, 22”, and 24” 20” pipeline, 139 miles 22” pipeline, 242 miles 24” pipeline, 312 miles

Storage tank (~130,000 bbl working capacity) has been secured at Ft. Laramie to assist with operational flexibility during line fill

July Begin oil flood of Guernsey pump station on/about 7/22 Line fill will begin on/about 7/23

August/September Complete remaining 22” line fill Complete 24” Section line fill

Uncommitted Shipper Meeting - July 17 – Lakewood, CO

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Steven Kelley - Scheduler, Oil Logistics

Somewhere in Wyoming

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PXP Guernsey Station

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Deeprock-Cushing to PXP Delivery Points

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Shipper Meeting – July 17 – Lakewood, CO

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www.TallgrassEnergyLP.com

www.TallgrassEnergyLP.com

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System Map

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System Map

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Pony Express Pipeline (PXP)- System Information

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Pony Express Pipeline – Nomination Information

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PXP – Common Stream Descriptions

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PXP – Information for Walk-Up Shippers

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PXP – Rules and Regulations

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PXP – Tariff Rates

PXP - Forms

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PXP – Credit Application Form

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PXP – Credit Application

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CONTACT INFO:

Kevin O’Brien

Treasury Manager

303-763-3406

[email protected]

PXP – Credit Application

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Potential shippers are encouraged to arrange credit at the earliest possible time.

PXP will only consider nominations for which credit arrangements have been made prior to nomination, or for nominations accompanied by an acceptable Letter of Credit or full prepayment.

Nominations

--- Break Time ---

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Guernsey Tank Farms

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Common Stream Descriptions

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Pony Express is a “multiple common stream” carrier. Pony Express will transport batches of up to three common streams from its Guernsey origin, and a fourth common stream from northeastern Colorado. The initial common streams are characterized as:

BLS - The Bakken Light Sweet common stream or “BLS” will originate at Guernsey and will contain not greater than .2% sulfur and will have an API gravity of not less than 40 degrees or more than 46 degrees.

MXS - The Mixed Sweet common stream or “MXS” will originate at Guernsey and will contain not greater than .5% sulfur and will have an API gravity of not less than 30 degrees or more than 38 degrees.

GWI - The Guernsey Wyoming Intermediate common stream or “GWI” will originate at Guernsey and will contain not greater than .42% sulfur and will have an API gravity of not less than 36 degrees or more than 42 degrees.

NIO - The Niobrara common stream or “NIO” will originate at receipt points on the NECL and will contain not greater than .42% sulfur and will have an API gravity of not less than 36 degrees or more than 42 degrees.

Nominations

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Material Safety Data Sheets (MSDS)

Initial Nominations must be accompanied by an appropriate MSDS.

Nominations lacking the appropriate MSDS will not be considered.

Nominations

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Nominations

Ten Percent (10%) of Available Capacity is for Uncommitted Shippers

• Belle Fourche Joint Tariff = 12,200 bpd / 370,000 bpm

• Hiland HH Joint Tariff = 4,200 bpd / 127,000 bpm

• Local PXP Tariff = 6,100 bpd / 185,000 bpm

(figures are approximate)

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Nominations (continued) All Nominations are due to PXP by 5:00 PM Central Time on

the 20th calendar day or the preceding business day if the 20th is on non-business day.

All Nominations must include: Receipt Point:

• Guernsey- PXP / Belle Fourche Joint Tariff• Guernsey- PXP / Hiland Joint Tariff• Guernsey- PXP Local Tariff

Delivery Point:• Oklahoma• Other future sites

Destination:• Rose Rock, BKEP, Enbridge, Plains, Enterprise, NGL (8¢),

Seaway (10¢), Ponca City (Phillips 66), or to LINEFILL.

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All Nominations must include: Crude Type:

• BLS – Bakken Light Sweet• MXS – Mixed Sweet• GWI – Guernsey Wyoming Intermediate• NIO - Niobrara

Volume:• In Barrels per Day (bpd)• By grade• By destination

Minimum Nomination is 10,000 bbls per month per Silo.

Can be different grades to total 10,000 bbls

DO NOT OVER NOMINATE ! Awarded Nominations are BINDING !

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Nominations (continued)

Nominations for shipments on The Belle Fourche – PXP Joint Tariff must be made to and confirmed by both BFPL and PXP.

Nominations for shipments on The Hiland - PXP Joint Tariff must be made to and confirmed by both Hiland and PXP.

Shipments originating at Guernsey under the PXP Local Tariff require Nomination and confirmation by PXP, and will need to be confirmed by the applicable upstream Carrier.

PXP – Nomination Form

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Nominations

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Nominations (continued)

All initial nominations must also include additional volume of 27% for pro rata LINEFILL.

EXAMPLE:• 1st month Nomination 10,000 bbls• 1st month ProRata Linefill 2,700 bbls

• 2nd month Nomination 15,000 bbls• 2nd month ProRata Linefill 1,350 bbls

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In-Line Transfers

By prior approval, In-Line Transfers may occur between current Shippers

Request must be submitted in writing to PXP for approval

A nominal fee will apply

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Linefill barrels may be withdrawn:

• 90 days after written notice to cease shipments, and

• After payment is received in full for all services by PXP

Prorations and Awarded Nominations

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Prorations:

Based on SILO Concept:

Source points at Guernsey:o Belle Fourche Pipeline / PXP Joint Tariffo Hiland Double H Pipeline / PXP Joint Tariffo Local PXP Tariff from Guernsey Sources

Each SILO has defined capacity including 10% for Walk-up

Each SILO prorated independently and separately

Prorations and Awarded Nominations –

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Prorations: Examples Belle Fourche 10% is 370,000 bbls/month

• IF 37+ Shippers Nominate 10,000 bpm or more, then 37 Shippers will each be awarded 10,000 barrels of capacity through a random selection process.

• IF 30 Shippers Nominate 10,000 bpm and 2 Shippers Nominate 60,000 bpm, then all 32 Shippers will be awarded 10,000 bpm (32 x 10,000 = 320,000) and each of the Shippers who Nominated 60,000 bpm will be awarded an additional 25,000 bpm.

Awarded Capacity then is:o 30 Shippers @ 10,000 bpm (300,000 bpm)o 2 Shippers @ 35,000 bpm ( 70,000 bpm)

Prorations and Awarded Nominations

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A New Shipper may graduate in a Silo to Regular Shipper status by Nominating and Shipping on PXP in each month of the Base Period in that Silo.

Base Period means the twelve (12) calendar month period: Beginning thirteen (13) months prior to the current month, and Excluding the Month preceding the current Month

Base Period Example: Shipper begins in Sept 2014 and ships for 12 consecutive months in one Silo.

In October 2015, a New Shipper would graduate to Regular Shipper after satisfying the Base Period definition. Ship 12 months (Sept thru Aug)

Scheduling

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All Nominations are due to PXP by the 20th calendar day.

PXP will promptly notify all shippers of any proration and awarded capacity.

PXP will develop and distribute a monthly pumping/delivery schedule to all shippers and connecting carriers

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Regulatory Filings

PXP expects FERC tariff filing to occur in August.

Current estimation is that the initial Uncommitted (local) Rate for transportation of crude oil from Guernsey to Cushing will be up to $4.25 per barrel.

The estimated rate is subject to change as we near completion of the system and will be filed with the FERC prior to our in-service date.

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Mona Walker – Manager, Operational Accounting

PXP Commercial Transaction Management System

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Energy Solutions International (ESI)Pony Express Pipeline will be utilizing Synthesis and Pipeline

Scheduler for commercial transaction processing.

Synthesis is one of the industry best-of-class software systems in the midstream oil and gas industry.

Benefits of the PXP operating system to shippers include: Scheduler: Efficiently and accurately schedule the pipeline system– Make changes, recalculate, and immediately see results and communicate to

shippers– Ability to see system future states, with current conditions– Interface seamlessly with transactional accounting system for accurate and

efficient monthly close processes

PXP Commercial Transaction Management System

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Energy Solutions International (ESI) (continued)

Option to accept nominations from and pass information to shippers via Internet

Import measurement data for transactional calculations

Inventory, and book-to-physical calculations

Tie nominations, tickets, contracts, tariffs together for full financial calculations and accurate shipper statements

Generate and send shipper invoices

Ad hoc reporting and analysis which will allow us to timely responses to shipper requests

Accounting Procedures

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PXP will apply:

A Common Stream, Available Oil Model

• Applies to all shipments Joint Tariff PXP Local Tariff


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Credit:

New Shippers are required to submit a request for shipper status.

Each Shipper is subject to continual review of its financial position.

PXP reserves the right to limit credit to any Shipper when financially prudent.


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Billing:

Shippers will be billed on the 15th calendar day of the invoice month for all barrels delivered.

Receipt and delivery tickets are the controlling documents upon which such billing is based.

Shippers will receive one invoice that identifies all charges on Joint Tariff and PXP systems.


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Billing:

The billing documents included in the invoice package will include: Shipper statement PXP Inventory statement Pipeline and terminal loss allowance assessment Delivered barrel transportation tariff charges Any other applicable fees which may include demurrage

and pumping fees

Payment is due on the 20th calendar day of the invoice month

Shipper Questions and Discussion

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Pony Express Pipeline - Contacts

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Confidential Presentation

Pony Express Pipeline Uncommitted Shipper MeetingJuly 17, 2014

Documents

July 17, 2014 Lakewood, Colorado