MONTHLY UPDATE2:00 PM CCT

April 23, 2020

PLEASE MUTE YOUR PHONES! (*6)

Agenda• Safety Moment• PSO / Storage• Capacity Planning • Capacity Scheduling• Integrity and Reliability • Marketing & Customer Service• CSI Updates• Billing• Measurement• Rates• Trivia• Q&A

PSO(Planned Service Outage)

STORAGE UPDATE

Storage Updates

• Winter has come to a close. Although we experienced a warmer than average heating season, we were still able to pull the fields down near the 10 year average for testing

• Greatly appreciate customers working with us to get their gas out of the fields

• Currently 3% over the 10-year average • Injected 1Bcf into storage week ending 4/17• Spring storage field testing is complete• Temperatures have ranged from the 20’s to the

80’s over the past month to start the spring off with a roller coaster of injections and withdrawals

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Gas

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Southern Star Working Gas

2011

2012

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2015

2016

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2019

2020

10 YR AVG

Capacity Planning

69k (to PMI or NNG Kiowa)

60k (OGT)113k (TW)

150k (NGPL-Mutual)

94% Subscribed

17k (Questar)

AVAILABLE CAPACITY5/1/2020

100k (NNG Kiowa)

18k (PMI)

40k (NGPL Carter)

11k (Sedalia Area)

40k (to NGPL Beaver)

CONSTRAINT OF THE MONTHSB POOL

ALL CONSTRAINTS (3 TOTAL)

Legend

Pipeline

Flow & Direction

Loc. # (Meter #)Location/Meter Name

168112 (15051) TWPL –Hemphill (Del)

Pipeline in Constraint

CAPACITY SCHEDULING

STRAIGHT BLACKWELL

• Straight Blackwell (SB) stems from the western part of our system in Oklahoma and Kansas east to Blackwell Station.

• SB currently operates at a capacity of 263,457 going east and we have multiple large receipt/delivery points in the SB Pool.

• NGPL Beaver (17004) – Delivery Salt Plains (16376/139) – Receipt/Delivery• CIG Floris (15266) – Receipt Rose Valley (17006) – Receipt• ETC Beaver (14653) – Receipt Targa Waynoka (16912) – Receipt

• Currently there are 3 constraints within the SB pool• Straight Blackwell • Waynoka Lateral • Straight Blackwell @ Beaver Deliveries

STRAIGHT BLACKWELL CONSTRAINT

• The Straight Blackwell constraint is currently in place simply to protect overall capacity of the line segment going east into Blackwell Station

• Total Receipts minus Deliveries on the line must equal no greater than 263,467

WAYNOKA LATERAL

• Waynoka Lateral is portion of the segment running south to north in northern Oklahoma. The constraint is in place to protect the operational capacity of the pipe.

• Total Receipts minus Deliveries must net to no greater 355,250

• There are 3 points located in this constraint: • 16912 Targa Waynoka – Receipt • 17005 Rose Valley – Delivery • 17006 Rose Valley – Receipt

STRAIGHT BLACKWELL @ BEAVER DELIVERIES

• Protects the overall capacity of the line segment going west toward NGPL Beaver from points further east (i.e. Rose Valley, Waynoka, etc.)

• Total Deliveries minus Receipts must net to no greater 116,725• So we can only deliver 116,725 to NGPL Beaver if receiving from points outside the constraint • HOWEVER, we can deliver more gas to NGPL Beaver if received from CIG and ETC

• The constraint includes the 3 interconnect points on SB: • NGPL Beaver (17004) – Delivery• CIG Floris (15266) – Receipt • ETC Beaver (14653) – Receipt

LINE N UPDATE

LINE N UPDATE• Rupture 8/6/18 (no injuries, fatalities, ignition of gas, or damage to structures)

• Line returned to service 8/9/18 (under pressure reduction)

• Root Cause – Stress Corrosion Cracking• Return to Service Plan

• EMAT Assessments• Anomaly Excavations• Metallurgical Testing• PHMSA Meeting

• Line N returned to full service 4/16/2020

MARKETING &

CUSTOMER SERVICE

CSI CONTACT LIST

Contact us with questions any timehttps://csimain.southernstar.com/App/InformationalPostings/OtherPostings/ContactUs

CUSTOMER MEETING UPDATE!

Projected Date: August 18-19, 2020

INTERCONNECTS

• Southern Star is planning on creating two new interconnects for 2020.

• New System Map has been posted to CSI

OPEN SEASONS(AVAILABLE CAPACITY)

CB-Hemphill and SB Open Season results Current market challengesSubsequently we have posted another open season for CB-Hemphill FTS-P capacity available beginning Sept. 1, 2020ROFR posting for FSS Market Area MSQ 140,184MDWQ 4,284Effective October 1, 2020Bids due by 12:00 noon CST May 7, 2020

CSI UPDATES

CSI UPDATE2020-2021 PROJECTS:

• CSI Update• 2020-2021 Projects:

• Capacity Release Completion (Recalls, Reputs, Awards)• Scheduling Enhancement Project

• Modernize screens with enhanced functionality and reporting

• PNT (Pathed Non-Threaded) Scheduling Model

MOD CHARGES

MR1 with Capacity Release

• Derek Hibbs• Leader Customer Billing• 270-852-4573• Derek.Hibbs@southernstar.com

Modernization Rates

Transportation•Production MR1 and MC1 -

$0.0199•Market MR1 and MC1 -

$0.0049

Storage•MR1 and MC1 - $0.0075

Capacity Release

All MR1 will be assessed to the original capacity holder.

Original capacity holder will able to be make offers with the MR1 and RES being shown as the maximum reservation rate.

If awarded rate is full max rate plus MR1, the total amount will be credited back thru REA or RVA and assessed to the RES or REV of the replacement contract.

If a capacity release contract has overrun charged to them, they will receive MC1 directly.

Capturing MR1 on Offers

The Max Tariff Rate on the offer screen is now a combination of the new MR1 rate and the firm transport RES rate for the area the capacity is being offered.

If a capacity holder would like to recover MR1 charges thru an offer, they can add that to their Minimum Acceptable Rate.

The MR1 charges will be recovered in the REA or RVA credit back rate.

Capacity Release from Discounted Contracts

Any awarded release contract that is replacing capacity from a discounted contract must follow the criteria of the original capacity holder’s discount agreement.

If the capacity release contract does not follow that criteria, Southern Star will increase rate for releasing shipper for that volume from the discounted rate to max and will now also charge MR1.

The releasing shipper has the ability thru the discount indicator of the offer to select if they will accept the additional charges or if they will be responsibility of the replacement shipper.

MEASUREMENT

OUTSTANDING LUG RESULTS!!(LOST AND UNACCOUNTED FOR GAS)

• Latest fuel filing includes spectacular LUG results for 2019 with .09% Loss Rate• Numerous initiatives contribute to this stellar result

• Modernization efforts• Loss identification

• Pipeline purges• Pigging operations• Station Blowdowns

• Communication between field and analysis teams reviewing losses• Monthly Zone Team meetings

• Correcting LUG issues• Repairing leaking valves• Verify/Calibrate meters • Maintaining gas chromatographs

RATES

RATES UPDATE• Fuel Filing (RP20-532)

• Filed 2/19/20, accepted by FERC letter order on 3/10/20

• New fuel reimbursement percentages effective 4/1/20

• Production and Market Area fuel and loss reimbursement percentages both down from last year

• Storage will remain 3.24% as result of stable base rate accepted in last year’s fuel filing (RP19-773)

For the Period4/1/20 4/1/19

to to3/31/21 3/31/20 Change

Production AreaFuel 0.88% 0.82% 0.06%Loss 0.09% 0.19% -0.10%Surcharge -0.01% 0.02% -0.03%Total Production Area 0.96% 1.03% -0.07%

Market AreaFuel 0.73% 0.72% 0.01%Loss 0.09% 0.19% -0.10%Surcharge -0.10% 0.02% -0.12%Total Market Area 0.72% 0.93% -0.21%

StorageBase Fuel and Loss 3.24% 3.24% 0.00%Surcharge 0.00% 0.00% 0.00%Total Storage 3.24% 3.24% 0.00%

RATES UPDATE

1) ON THE OFFER SCREEN, WHAT RATE IS CURRENTLY POSTED AS THE MAXIMUM TARIFF RATE FOR FIRM TRANSPORT RESERVATION IN THE PRODUCTION AREA?

2) WHAT ARE THE 3 CONSTRAINTS WITHIN THE SB POOL?

3) WHAT ARE THE NEW PROD AND MARKET AREA TRANSPORT FUEL RATES EFFECTIVE APRIL 1, 2020?

BONUS: WHAT ARE THE 3 DATES ON THE PSO THAT AFFECT LINE SEGMENT 490 (RAWLINS HESSTON)?

PLEASE SEND ANSWERS TO buster.ashley@southernstar.com BY END OF BUSINESS DAY FRIDAY 4/24/2020!

* Congratulation to our March WebEx Trivia winner: Malorie Romaine with The Energy Authority

TRIVIA

Future Topic RecommendationEmail -> Robin.Joska@southernstar.com

SAFETY REMINDER

* STAY FIRE-SAFE THIS SUMMER WHEN GRILLING!