Transco s Atlantic Access Project - 1line.williams.comTerm Extension - Future Projects > If Shipper elects the negotiated rate offered under the Project: –Transco will agree to:

© 2011 Williams Partners L.P. All rights reserved. FOR DISCUSSION PURPOSES ONLY

Transco’s Atlantic Access Project

April 2012

FOR DISCUSSION PURPOSES ONLY

NOT AN OFFER OR ACCEPTANCE OF AN OFFER


Atlantic Access Overview

2 April, 2012 |

Microsoft Office PowerPoint 2007.lnk

Natrium Path Butler Path Rivervale Path Station 520 Path Station 517 Path Leidy West Path Zone 6 Zone 5 Zone 4 Zone 3

Path Capacity

(Mdt/d)

Receipt

Point

Delivery

Point

Original Paths

Natrium 700 DTI Natrium Liberty

Butler 600 Butler Liberty

Rivervale 300 Rivervale Liberty

Supplemental Paths

Station 520 250 Grugan Sta. 85

Station 517 250 MARC1 Sta. 85

Leidy West 200 Sta. 515 Leidy

Total 2,300

Open Season Feb. 3 – July 13, 2012

Proposed ISD for all Paths is December 2015


Outcome of the February 3rd, Open Season

April, 2012 | 3

> 3 Firm Paths

– Natrium Path (900Mdt/d) – Capacity is Available

– Rivervale Path (300Mdt/d) – Fully subscribed

– Butler Path (600Mdt/d) – Fully subscribed

> All 3 paths terminate at the Liberty

Interconnection Transco’s Zone 3

Natrium

Butler

Rivervale

Transco Fuel (April 1, 2012)

• Zone 6 fuel is 0.65%




0% Fuel for Deliveries made by

displacement in Zones 5, 4, & 3

Liberty MP 469.41

S195


Atlantic Access Supplemental Open Season

4 April, 2012 |

Natrium Path Butler Path Rivervale Path Station 520 Path Station 517 Path Leidy West Path Zone 6 Zone 5 Zone 4 Zone 3

Path Capacity

(Mdt/d)

Receipt

Point

Delivery

Point

Original Paths

Natrium 700 DTI Natrium Liberty

Butler 600 Butler Liberty

Rivervale 300 Rivervale Liberty

Supplemental Paths

Station 520 250 Grugan Sta. 85

Station 517 250 MARC1 Sta. 85

Leidy West 200 Sta. 515 Leidy

Total 2,300

Transco Fuel (April 1, 2012)





0% Fuel for Deliveries made by

displacement in Zones 5, 4, & 3


Production Activity

5 April, 2012 |


PA Marcellus Activity – Permits top 10 counties

NE

SW

• Permitting is a forward looking

indicator

• North/South in 2011 are 2.1 to 1

but that is a lower ratio than in

2010

6 April, 2012 |

Map Updated 12/5/11

County NE/SW 2011 2010 2009 Δ% (annual) Δ% (annual) 2011 2010 2009

Permits Permits Permits '10 to '11 '09 to '10 Rank Rank Rank

Bradford NE 811 832 430 -3% 93% 1 1 1

Tioga NE 533 607 300 -12% 102% 2 2 2

Lycoming NE 454 291 107 56% 172% 3 3 6

Washington SW 415 249 209 67% 19% 4 4 3

Greene SW 389 178 182 119% -2% 5 6 4

Susquehanna NE 370 230 155 61% 48% 6 5 5

Clearfield NE 193 76 72 154% 6% 7 14 9

Butler SW 187 85 42 120% 102% 8 11 11

Westmoreland SW 151 87 89 74% -2% 9 10 7

Wyoming NE 130 89 11 46% 709% 10 9 17

3,633 2,724 1,597 33% 71%

Top 10 PA Counties Q1-Q4 2011 by Permits

Top 10 PA Counties Q1-Q4 2011 by Permits


0

50

100

150

200

250

Jan

-08

Ma

r-08

Ma

y-08

Jul-0

8

Se

p-0

8

No

v-08

Jan

-09

Ma

r-09

Ma

y-09

Jul-0

9

Se

p-0

9

No

v-09

Jan

-10

Ma

r-10

Ma

y-10

Jul-1

0

Se

p-1

0

No

v-10

Jan

-11

Ma

r-11

Ma

y-11

Jul-11

Se

p-11

No

v-11

We

lls/M

on

th

Vertical

Horizontal

PA Marcellus - Well Spuds 2008 to 2011 Doesn’t include WV

Up

da

te (

De

c ‘1

0)

Up

da

te (D

ec

‘0

9)

7 April, 2012 |

151H (12 Mo. Avg.)

104H (12 Mo. Avg.)

45H (12 Mo. Avg.)

All PA


0

2

4

6

8

10

12

14

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14

Gro

ss P

rod

ucti

on

(B

cf/

d)

Navigant '08

Wood Mac 10/'11

Tudor, P & H 1/'10

Bentek 11/'10

CHK 6/'11

Ind. Low '09

Ind. High '09

4 Qtr. Avg. Low Curve

4 Qtr. Average High Curve

PA DEP 6 mo. Avg. 01/'12

Penn State (PA only) 7/'11

Marcellus Production Estimates (past and present) No Utica, No New York

PA DEP Marcellus

Production Data

FU

TU

RE

PA

ST

8 April, 2012 |

2.4

1.5

3.3

* Data Gathered from publicly available sources

or used by permission

(Mid-Scenario)


SW Marcellus Infrastructure Development**

More takeaway needed by 2015

Blair

Bedford

Gas Treating

2.2 Bcf/d

Dry Gas Gathering

1.8 Bcf/d

Dry Gas Gathering

1.550 Bcf/d

Total by 2015

5.0 Bcf/d

NF

G L

ine

N (

1&

2)

Regulated Projects

1.0 Bcf/d

April, 2012 | 9

* Data Gathered from publicly available sources

** Butler County is largely excluded


Northeast Shale Activity Q1-Q4 2011 Still Early for Utica, but Ohio Shale may be #2 soon

OH

WV VA

PA

MD

Permits PA Marcellus (4488)

WV Marcellus (506)

OH Utica (128) [Q1-Q3 (39)]

OH Utica Wells Drilled (35) [Q1-Q3 (9)]

Utica Completed (3)

10 April, 2012 |

Butler

Lycoming

Susquehanna

Dominion

East Ohio

Marshall

Eagle Ford Permit (compare Utica)

2008 (26)

2009 (94)

2010 (1,010)

2011 (2,826)


Transportation Path Details

11 April, 2012 |


Natrium Path – Proposed Receipt Points

12 April, 2012 |

Contract Path


Significant Capability to Blend (2:1 rich to lean)

April, 2012 |

Waynesburg

Line N

Majorsville

Shamrock Crayne Cantaral

Atlantic

Access To Transco

Mainline

Ft. Beeler

498 MDt/d

1,137 Btu

16% C2

465 Mdt/d

1,035 Btu

1,500 Mdt/d

1,099 Btu

Natrium

13

> While Transco’s gas tariff has a BTU limit of 1,100, Transco’s tariff and operations allow

flexibility to provide for for significant gas blending on Atlantic Access

– Potentially as much as 88,000 bbls/d (based on 1.5 MMdt/d capacity)

> The expectation is that the heavy liquids would be processed prior to entering Transco’s

system and that only Ethane remains as an issue.

537 Mdt/d

1,122 Btu

14% C2


Legend

Existing Meter Stations

Marcellus Interconnects

In Service

I/C Agmt. In Place

In Negotiations

Preliminary

Contract Path

520 Path

Receipt Area

Station 520 Path Receipt Points

14 April, 2012 |

Lycoming

Susquehanna Bradford

Clinton

Potter

Sullivan

Luzerne

Wyoming

Lackawanna

Centre

Columbia

Newark NYC

Tioga

Montour

To Sta. 85


Legend



In Service

I/C Agmt. In Place

In Negotiations

Preliminary

Contract Path

517 Path

Receipt Area

Station 517 Path Receipt Points

15 April, 2012 |

Lycoming


Clinton

Potter

Sullivan

Luzerne

Wyoming

Lackawanna

Centre

Columbia

Tioga

Montour

To Sta. 85


Legend



In Service

I/C Agmt. In Place

In Negotiations

Preliminary

Contract Path

Leidy West

Receipt Area

Leidy West Path Receipt Points

16 April, 2012 |

Lycoming


Clinton

Potter

Sullivan

Luzerne

Wyoming

Lackawanna

Centre

Columbia

Tioga

Montour

To Sta. 85


Open Season Details

17 April, 2012 |


Open Season

> As a result of the original open season Transco has two anchor

shippers under the project for a TCQ of 900,000 dt/day: • 600,000 dt/day on the Butler Path, and

• 300,000 dt/day on the Rivervale Path.

> Any other shipper requesting at least 300,000 dt/d on the Natrium Path

will be designated an Anchor Shipper;

– Anchor Shippers will be allocated capacity first.

– Anchor shippers may be provided preference with regard to negotiated rates under the

Project.

> On the 520, 517, & Leidy West paths capacity will be allocated by rate,

term, and pro-rata by path.

> Capacity Available in the Open Season:

– Natrium Path: 700,000 dt/d

– Station 520 Path: 250,000 dt/d

– Station 517 Path: 250,000 dt/d

– Leidy West Path: 200,000 dt/d

18 April, 2012 |


Open Season Procedure and Timing

> Open Season commenced on February 3, Supplemental Open Season

commenced April 16, both will close July 13, 2012.

> At the conclusion of the Open Season, Transco may:

– (i) revise or cancel any scope element of the Project; or

– (ii) starting with the largest shipper, allow voluntary reduction of requested TCQs; or

– (iii) allocate the firm transportation capacity under the Project (as further described in

the open season announcement).

> Any shipper desiring firm transportation service under the Project must:

– (i) on or before July 13th submit to Transco an Open Season Transportation Request

form.

– (ii) execute and deliver to Transco before an executed precedent agreement (PA) for

firm transportation service under the Project by July 31, 2012. Approvals for firm

transportation on each path must be met as follows:

Path Shipper Approval Transco Approval

Sta. 520 & Sta. 517 August 31, 2012 September 30, 2012

Leidy West and Natrium September 30, 2012 October 31, 2012

Butler December 31, 2012 January 31, 2013

> Transco may extend any Project deadlines.

19 April, 2012 |


Open Season Procedure – Rates

> Transco is offering the six paths under the Project with a single Project

recourse reservation rate of $0.621 per dt/day

– The recourse rate for the Project is based on estimated capital and capacity, the actual

recourse rate will be determined by actual costs and actual capacity.

> Shippers may elect under the Precedent Agreement to choose either

the Project recourse rate or a negotiated reservation rate. Negotiated

reservation rates are as follows:

Path Negotiated Rate

Natrium $0.55/dt/d (Capacity Allocated to Anchor Shippers and then pro-rata by requested capacity).

Path Minimum Negotiated Rate

Station 520 $0.60/dt/d

Station 517 $0.55/dt/d

Leidy West $0.20/dt/d (Capacity Allocated by highest rate and then by highest term and then pro-rata by requested capacity per path).

20 April, 2012 |


Term Extension - Future Projects

> If Shipper elects the negotiated rate offered under the Project:

– Transco will agree to:

– a term extension provision providing the shipper the option to extend the term of the service

agreement for a five-year period for all or a portion of the TCQ in effect during the primary term

and, at the shipper’s option, at either the existing negotiated rate or the applicable recourse

rate; and

– a second term extension provision providing the shipper the option to extend the term of the

service agreement for a one-year period for all or a portion of the TCQ in effect during the first

term extension at the applicable recourse rate.

– If Transco pursues a future expansion of the firm transportation capacity comprising

the Natrium or Butler Paths and Transco determines that the incremental cost of

service for such expansion would be lower than the annual revenues Transco would

expect to collect from the shippers under such expansion at the applicable recourse

rate under the Project, then Transco plans to seek to roll-in the cost of such future

expansion into the cost of service of the Project.

21 April, 2012 |


Term, Fuel, Credit, ISD

> Term

– Minimum acceptable to Transco is 15 years.

> Fuel and Other Charges

– Transco would seek rolled-in treatment for fuel and electric power charges.

– In addition to the negotiated reservation rate, Buyer would be charged fuel and line-

loss retention, electric power charges, commodity charges and applicable surcharges

under Rate Schedule FT.

> Credit

– Shipper will be deemed to creditworthy if it has a long term senior unsecured debt

rating of BBB- or better from Standard and Poor’s or Baa3 or better from Moody’s

Investor Services

– For non-creditworthy Shippers, credit support equal to 3 months FT will be required.

– Shipper will be required to provide credit support within 1 month of Transco approval

(slide 16).

> In-Service Date

– Target ISD is December 2015.

April, 2012 | 22


Market Information

23 April, 2012 |


Market Accessible to Atlantic Access Shippers No Leidy Volumes included

April, 2012 |

2009 2010 2011 2008

24

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

21-J

ul-0

8

13-A

ug-0

8

5-Se

p-08

28-S

ep-0

8

21-O

ct-0

8

13-N

ov-0

8

6-D

ec-0

8

29-D

ec-0

8

21-J

an-0

9

13-F

eb-0

9

8-M

ar-0

9

31-M

ar-0

9

23-A

pr-0

9

16-M

ay-0

9

8-Ju

n-09

1-Ju

l-09

24-J

ul-0

9

16-A

ug-0

9

8-Se

p-09

1-O

ct-0

9

24-O

ct-0

9

16-N

ov-0

9

9-D

ec-0

9

1-Ja

n-10

24-J

an-1

0

16-F

eb-1

0

11-M

ar-1

0

3-A

pr-1

0

26-A

pr-1

0

19-M

ay-1

0

11-J

un-1

0

4-Ju

l-10

27-J

ul-1

0

19-A

ug-1

0

11-S

ep-1

0

4-O

ct-1

0

27-O

ct-1

0

19-N

ov-1

0

12-D

ec-1

0

4-Ja

n-11

27-J

an-1

1

19-F

eb-1

1

14-M

ar-1

1

6-A

pr-1

1

29-A

pr-1

1

22-M

ay-1

1

14-J

un-1

1

7-Ju

l-11

Sta 195 North Sch. Qty. (Dt/d)

Sta 195 to Elba Deliveries (Dt/d)

Zone 4 Allocated Deliveries (Dt/d)


-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1 57 113 169 225 281 337 393 449 505 561 617 673 729 785 841 897 953 1009 1065

Sta 195 North Sch. Qty. (Dt/d) [1,095 days sorted by vol.]

Metered Qty. Sta. 195 to Elba GA (Dt/d) [1,095 days sorted by vol.]

Zone 4 Allocated Qty. (Dt/d) [1,095 days sorted by vol.]

Market Accessible to Atlantic Access Shippers

April, 2012 |

Min. 2,290,658 Dt/d

Max . 6,801,846 Dt/d

Avg. 3,677,598 Dt/d

10% 50% 30% 70%

25

90%


Demand Growth will be led by Power Gen

85

65

210

195

Zone 5

Zone 4

Zone 6

Zone 4A

Zone 4B

Sources: Wood Mackenzie H2 2011 Base Case Energy Velocity FERC

Year MMDth/d

2011 8.9

2021 10.0

Change 1.1

Zone 6 Demand

Year MMDth/d

2011 2.5

2021 3.5

Change 1.0

Zone 5 Demand

Year MMDth/d

2011 4.1

2021 4.8

Change 0.7

Zone 4 Demand

Year MMDth/d

2011 3.4

2021 3.7

Change 0.3

Florida Demand

Year MMDth/d

2011 4.0

2021 5.5

Change 1.5

Zone 3 Demand

Operating Coal Power Plants

Proposed LNG Exports

Proposed GTL Zone 6 Firm Capacity

5,494 MDth/d

Zone 4 Firm Capacity

1,305 MDth/d

Zone 5 Firm Capacity

2,175 MDth/d

26 April, 2012 |


Zone 6 Market Access

195

Zone 6

Rivervale

Party Type Party

LDC Baltimore Gas And Electric Co

LDC Consolidated Edison Company Of New York Inc

LDC Delmarva Power & Light Company

LDC Eastern Shore Natural Gas Company

LDC Keyspan Gas East Corporation D/B/A National Grid

LDC New Jersey Natural Gas Company

LDC Orange & Rockland Utilities

LDC Peco Energy Company

LDC Philadelphia Gas Works

LDC Pivotal Utility Holdings, Inc.

LDC Pseg Energy Resources & Trade LLC

LDC South Jersey Gas Company

LDC The Brooklyn Union Gas Company D/B/A National Grid NY

LDC UGI Central Penn Gas, Inc.

LDC UGI Penn Natural Gas, Inc.

LDC UGI Utilities Inc

LDC Washington Gas Light Company

Industrial ConocoPhillips Tosco Refinery

Industrial Holcim (Us) Inc.

Industrial Solo Cup Operating Corporation

Industrial Sunoco Inc

Industrial United States Gypsum Company

Park & Loan Transco Park & Loan Station 210

Interconnect Algonquin Centerville

Interconnect Columbia Gas Transmission Downingtown

Interconnect Columbia Gas Transmission Martins Creek #3

Interconnect Columbia Gas Transmission Rockville

Interconnect Dominion Transmission Inc Leidy

Interconnect National Fuel Gas Supply Corporation Leidy

Interconnect National Fuel Gas Supply Corporation Wharton

Interconnect Texas Eastern Transmission, LP Lambertville

Interconnect UGI Storage Company

Pooling Transco Pooling Station 210

Power Gen Calpine Mid Merit, LLC Delta Power

Power Gen Nextera Energy Power Marketing, LLC Post Road

Power Gen Ppl Interstate Energy Company

Power Gen UGI Utilities Inc Hazleton Power

Power Gen Virginia Power Energy Marketing Inc

MD Baltimore

Zone 5

Wash., DC

210

NYC

Philadelphia

Pittsburgh

PA

DE

NJ

NY

VA

Station

210 Pool

27 April, 2012 |



165

Zone 5

Pine Needle

SC

Party Type Party

LDC City Of Bessemer City North Carolina

LDC City Of Greenwood South Carolina

LDC City Of Kings Mountain North Carolina

LDC City Of Laurens South Carolina

LDC City Of Lexington North Carolina

LDC City Of Monroe North Carolina

LDC City Of Shelby North Carolina

LDC City Of Union South Carolina

LDC Clinton-Newberry Natural Gas Authority

LDC Columbia Gas Of Virginia Inc Lynchburg

LDC Fort Hill Natural Gas Authority

LDC Frontier Natural Gas Company, LLC

LDC Patriots Energy Group

LDC Piedmont Natural Gas Company Inc

LDC Public Service Company Of North Carolina

LDC South Carolina Electric & Gas Company

LDC Southwestern Virginia Gas Company

LDC Washington Gas Light Company

Industrial First Quality Tissue SE, LLC Shaw Industrial

Industrial Owens Corning Sales, LLC

LDC City Of Danville Virginia

LDC City Of Fountain Inn South Carolina

LDC Commission Of Public Works, City Of Greer South Carolina


Interconnect Cardinal Pipeline Company LLC

Interconnect Carolina Gas Transmission Corporation

Interconnect Columbia Gas Transmission Dranesville

Interconnect Columbia Gas Transmission Emporia Waldrop

Interconnect Dominion Cove Point LNG, LP Pleasant Valley

Interconnect Dominion Transmission Inc Nokesville

Interconnect East Tennessee Natural Gas Cascade Creek

Interconnect Elba Express Company, L.L.C. SC

Interconnect Pine Needle Lng Company, LLC


Power Gen Carolina Power & Light Company D/B/A Progress Energy Carolinas, Inc.

Power Gen Cherokee County Cogeneration Partners LLC

Power Gen Duke Energy Carolinas, LLC

Power Gen Hess Corporation Park Road

Power Gen Tec Trading, Inc.

Power Gen Virginia Electric And Power Company D/B/A Dominion North Carolina Power

Power Gen Virginia Power Services Energy Corp Inc

VA

NC

Charlotte

Richmond

Zone 4

Station

165 Pool

28 April, 2012 |



Party Type Party

Industrial Georgia-Pacific Consumer Products LP

Industrial International Paper

Industrial Pratt Industries (USA) Mill Division D/B/A Visy Paper, Inc.

Interconnect Elba Express Company, L.L.C. GA

Interconnect Hattiesburg Gas Storage Company

Interconnect Leaf River Energy Center Clarke

Interconnect Mississippi Hub, LLC STG

Interconnect Petal Gas Storage, L.L.C.

Interconnect Southeast Supply Header, L.L.C.

Interconnect Southern Natural Gas Company LLC

LDC Alabama Gas Corporation

LDC Arlington Gas Pipeline L P

LDC Atlanta Gas Light Company

LDC Atmos Energy Corporation

LDC City Of Alexander City, Alabama

LDC City Of Lagrange, Georgia

LDC Gulf South Pipeline Company LP Magnolia

LDC Municipal Gas Authority Of Georgia

LDC Sylacauga Utilities Board

LDC Town Of Liberty Mississippi

Park & Loan Transco Park & Loan Station 85 Z4

Pooling Transco Pooling Station 85 Z4

Power Gen Constellation Energy Commodities Group, Inc. Hillabee Power

Power Gen Municipal Electric Authority Of Georgia

Power Gen Oglethorpe Power Corporation

Power Gen Santee Cooper

Power Gen Scana Energy Marketing Inc

Power Gen Southern Company Services, Inc.

Power Gen Tenaska Alabama II Partners, LP

Transco Storage Transco Eminence Storage

65 S

Zone 4

Eminence

85

Zone 5

Atlanta

GA

MS AL

FL

Station

85 Pool

Zone 4A

Zone 4B

29 April, 2012 |



Party Type Party

Industrial Occidental Chemical Corporation

Industrial Zen-Noh Grain Corporation

Interconnect American Midstream (MIDLA), LLC Ethel

Interconnect Bridgeline Holdings LP St James Faustina

Interconnect Crosstex LIG, LLC Terrebonne

Interconnect Cypress Gas Pipeline LLC Romeville

Interconnect Florida Gas Transmission Company St. Helena

Interconnect LA Storage, LLC Liberty Gas Storage

Interconnect Pine Prairie Energy Center LLC

Interconnect Port Barre Investments, LLC

Interconnect Texas Gas Transmission, LLC Mamou

LDC Louisiana Municipal Gas Authority





Transco Storage Transco Washington Storage

45

50

65

S

Zone 3

LA

Washington

Station

65 Pool

Station

50 Pool

30 April, 2012 |

Zone 2

Trunkline LNG

Cameron LNG

Sabine Pass LNG


Proposal Disclaimer

> Legal Disclaimer:

– Neither this proposal nor the ongoing discussions, exchanges of information, and

correspondence between Transco and Shipper shall constitute or imply a commitment

or binding obligation between the parties or their respective affiliated entities, regarding

the project. Each of Transco and Shipper reserves the right, in its sole and absolute

discretion, to reject any and all proposals and to terminate discussions at any time. If,

in the future, the parties elect to enter into a binding commitment regarding the project,

such commitment shall be explicitly stated in a separate written agreement executed

by both parties (“Definitive Agreement”), and the parties hereby affirm that their

discussions, correspondence, and other activities shall not be construed as forming a

contract regarding the project or any other transaction between them without execution

of such separate written agreement. Without limitation of the generality of the

foregoing, for purposes hereof, a Definitive Agreement does not include a proposal, a

negotiated term sheet, an executed letter of intent or any other preliminary written

agreement or offer (whether or not signed by either of the parties), unless specifically

stated in writing to be a definitive agreement and executed by both parties.

April, 2012 | 31

Documents

Transco s Atlantic Access Project - 1line.williams.comTerm Extension - Future Projects > If Shipper elects the negotiated rate offered under the Project: –Transco will agree to: