2008 East Tennessee Natural Gas Customer Meetinginfopost.spectraenergy.com/downloads/ETNG_Customer_Meeting_05-21...Measurement System Enhancements Sarah Mohammed ... – Environmental

2008 East Tennessee Natural Gas Customer Meeting

May 23, 2008

2East Tennessee Natural Gas Customer Meeting

2008 Customer Meeting Agenda

Wrap-up Items and Questions / Issues Not Covered

Chris PallenikRegulatory Update

Claude MundyLink Enhancement

Sarah MohammedMeasurement System Enhancements

Coffee Break

Ryan James

Monty CollinsOperational Overview

Equitable Resources

CNX Gas

NGAS Resources

Range Resources

Producer Panel Discussion

Bill WickmanBusiness Development Update

East Tennessee Natural Gas Customer Meeting

Producer Panel Discussion

Equitable Resources

CNX Gas

NGAS Resources

Range Resources



Business Development Update

Bill WickmanDirectorMarketing


Current State of Capacity on ETNG

• West to East flows effectively fully subscribed

– Small pockets still exist on west end

• Nora Lateral fully subscribed

• Limited capacity on Jewell Ridge Lateral

• Capacity to Cascade Creek (Transco) nearly full

• East to West flows becoming constrained

• Load factors on entire system continue to increase


ETNG Appalachian Focus

• ETNG is the Appalachian gateway to the Southeast and Mid-Atlantic markets and is expanding on this footprint

• Producers require additional infrastructure

• Supply Side Options include:

– Extend/expand Nora

– Extend/expand Jewell Ridge

– Build new supply laterals from the mainline

• End use markets indicate interest in increasing/adding Appalachian Supply to their portfolios

• Scalable project envisions a multi-year phase-in

• All options will require additional mainline capacity


Greenway Project

34 Customers

Requested

1,040,766 Dth/d of Capacity


Greenway Open Season

TGP

70 mdth/d

Stone Mountain & Vicinity

200 mdth/d

Morgan County

180 mdth/d

Nora Field

150 mdth/d

Jewell Ridge

440 mdth/d

Cascade Creek

990 mdth/d

On System

50 mdth/d



Producers

71%

Power Gen

6%

LDCs Off system

14%

LDCs On system

3%

Industrials

2%

Marketer

4%



0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013+

Mdth/d

Nominations by Year


Step One: Greenway-Nora Expansion

• 2008 expansion to meet a portion of immediate needs for additional capacity

• Increases Nora Line capacity and mainline delivery capability to Cascade Creek and mainline points west of Nora

• Facilities involve replacing 8 inch line with 24 inch on ETNG mainline downstream of Nora interconnect

• In-service projected for December 1, 2008


Step Two: Set up the Next Traunch

• Evaluation of requests is underway

• Determining the ability and feasibility of adding capacity in 2009

• Focusing on infrastructure options to extend ETNG supply access deeper into Appalachian Basin

• Establish a timeline of project development that meets our customers needs:

Getting capacity where you need it,

when you want it.


Greenway Project - Timeline

Jan-08

Feb-

08Mar-0

8Apr-0

8May

-08

Jun-08Ju

l-08

Aug

-08

Sep

-08

Oct-0

8Nov

-08

Dec

-08

Jan-09

Feb-

09Mar-0

9Apr-0

9May

-09

Jun-09Ju

l-09

Aug

-09

Sep

-09

Oct-0

9Nov

-09

Dec

-09

Jan-10

Feb-

10Mar-1

0Apr-1

0May

-10

Jun-10

30 days

2 – 3 months

Draft EA EA Certificate

Stakeholders, Landowners, Agencies, FERC, Etc

Facility scoping

Open Season

Cost Estimating Mktg & PA’s

FERC filing

Pre-filing

Filing Prep

Construction

In Service

Partnering

Options

Rate

Structures


The Spectra Advantage• Strategic geographic footprint linking supply to market

– ETNG physically positioned to increase Appalachian production access to key market locations

– Spectra Energy possesses significant market relationships connecting suppliers and markets

– Open access operation maximizes market value

• Spectra’s core business is the provision of transportation and storage services

– Significant employee talent and management expertise dedicated to delivering value to our customers, employees, stakeholders and communities

– 8” – 42” high pressure pipes; major compression facilities – electric and gas

– Customer service, operations and optimization

– Long track record of developing and delivering new projects to market

• Project risk management

• Navigating FERC and other regulatory agencies

• ROW and permitting expertise

• Contractor and procurement strategies


W07-08 Spectra Energy Operations Review

Ryan JamesManager, Scheduling and Volume Management


Winter 2007-2008 Statewide Rankings


December Statewide Rankings


January Statewide Rankings


February Statewide Rankings


East Tennessee Natural GasTop 25 Delivery Days

1/2

1/3

1/20

12/17

1/24

1/15

2/27

12/6

1/21

1/25

12/51/222/131/41/19

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Demand (Dth)

02/03 03/04 04/05 05/06 06/07 07/08


East Tennessee Natural Gas Top 25 Summer Delivery Days

8/98/8

8/78/13 8/10 8/15

8/148/16 8/22 10/8

8/23 8/610/9

6/27 8/299/24 9/27 9/26 6/26


Seasonal Peak Demand

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

S98 & W98-

99

S99 & W99-

00

S00 & W00-

01

S01 & W01-

02

S02 & W02-

03

S03 & W03-

04

S04 & W04-

05

S05 & W05-

06

S06 & W06-

07

S07 & W07-

08

Demand (Dth)

Summer Peak Winter Peak


Total Seasonal Deliveries

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

110,000,000

S98 & W98-

99

S99 & W99-

00

S00 & W00-

01

S01 & W01-

02

S02 & W02-

03

S03 & W03-

04

S04 & W04-

05

S05 & W05-

06

S06 & W06-

07

S07 & W07-

08

Total Deliveries (Dth)

Summer Total Winter Total


Cascade Creek Deliveries


ETNG Total Yearly Receipts

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

110,000,000

120,000,000

130,000,000

140,000,000

150,000,000

160,000,000

170,000,000

180,000,000

190,000,000

2003 2004 2005 2006 2007

Receipts (Dth)

Other Receipts 3400 & 3700 Line Receipts


Daily Receipt Profile (Excluding Storage)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1-May

15-May

29-May

12-Jun

26-Jun

10-Jul

24-Jul

7-Aug

21-Aug

4-Sep

18-Sep

2-Oct

16-Oct

30-Oct

13-Nov

27-Nov

11-Dec

25-Dec

8-Jan

22-Jan

5-Feb

19-Feb

4-Mar

18-Mar

1-Apr

15-Apr

29-Apr

Receipts (Dth)

TE, TGP, CGT, MGT Receipts Other Receipts


Imbalances

• ETNG has minimal linepack to absorb any overtakes or undertake on its system.

• ETNG relies on upstream interconnecting pipelines to help manage any imbalances.

• Notified by upstream interconnect that their load factor in both the summer time and winter has increased

– As a result, imbalance historical imbalances swings will not be accepted.


Imbalance Impact

• ETNG will require shipper and point operators to ensure physicalreceipts and deliveries match physical flow.

– Adjust upstream receipts to match physical deliveries

– Utilize storage

• Less flexibility to keep markets whole during outages.

• If shippers do not adequate manage system and no flexibility on interconnecting pipelines, ETNG will be forced to issue more OFOs or Force Balance customers.


Federal Energy Regulatory Commission Filings and Timelines

Monty Collins Regional Director – Southern Region


Federal Energy Regulatory Commission (FERC) Timelines

• Different Filing Types

– Blanket Projects - Maintenance

– Prior Notice – 60-days

– Environmental Assessment (EA)

– Environmental Impact Statement (EIS)

• Draft Environmental Impact Statement (DEIS)

• Final Environmental Impact Statement (FEIS)

• Greenway Project Development Timeline

– Due Diligence (Feasibility Scope Development)

– Pre-Filing (Detailed Field Surveys & Alternatives)

– Post Filing FERC Review (Permitting and Detailed Design)

– Implementation and Condemnation

– Construction and Documentation


0

2

4

6

8

10

12

14

16

18

20

>300 Mile Greenfield

Pipeline and

Compression

100-300 Mile

Greenfield Pipeline /

1-2 New Compressor

Stations

60 Miles of Pipeline

(Existing ROW) /

Additions to Existing

Compressor Stations

New Compressor

Stations (no pipeline)

Additional

Compressor -

Existing Station (No

pipeline)

Prior Notice with

Incremental

Rate

Prior Notice

Prefile to Application Application to draft EIS draft EIS to final EIS

Application to EA Certificate

"Rule of Thumb" Certificate Timelines


Months72011 Construction

Months62010 Construction

Months4Implementation/Condemnation

Months10Post-Filing FERC Review

Months8Pre-Filing

Months3Due Diligence

DurationProject Phases


Coffee Break


Measurement System Enhancements

Sarah MohammedManagerMeasurement Integrity


Measurement Report Center

• Vision

– One stop shop for all measurement related information

– Provide within day billable quality data

– Provide comprehensive detail for measurement data

– Provide ability for analysis

– User friendly, easy to navigate

• Benefits

– Information available on demand – ready when you are

– Data presented graphically for easy analysis

– Gas Chromatograph data available hourly

– Ability to look at multiple meters across multiple months

– Ability to examine and analyze overall demand and usage


Link System – Measurement Report Center• Available via the Link System Customer Interface

• Uses same <link userid> and <password>

Measurement Report Center


Measurement Report Center – Home Dashboard

Demand

profile for

rolling 12

month period

Peak/Average

by meter

12 month

demand

profile

Flow

Distribution


Measurement Report Center – Reports Menu

• Meter List Information

• Volumetric Reports –

Station, Meter Run, Station

(multi) Flow Analysis

• Gas Quality Reports and

analysis

• Within day hourly data

•Operational Data (Current

month)


Measurement Report Center – Detail Meter List Information


Measurement Report Center – Daily Station Volume Report


Measurement Report Center – Hourly Station Volume Report


Measurement Report Center – Hourly Station Volume Report


Measurement Report Center – Station Demand Profile


Measurement Report Center – Hourly Meter Run Volume Report


Measurement Report Center – Chromatograph Data


Measurement Report Center – Chromatograph Comparison Graph


East Tennessee Customer Meeting

• Future Enhancements

– Prior Period Adjustment Reports

– Automatic Scheduling of Reports

– Posting of Meter Audit Statements

• Target Rollout – August-September


LINK® Update

Claude MundyManagerLink® Systems


2008 ETNG Activities

• Early Grove/Virginia Gas migrated to LINK®

• Enhancements planned for 2008/early 2009:

– “LINKed” Nominations (July)

– Interconnect Imbalance Notification (June)

– Cross Pipeline Nominations (Sept)

– On-line execution of LINK® System agreement and LSA form (Sept)

– Capacity Release Business Intelligence (Oct)

– Report Subscription (Dec)

– LINK® to Word On-Line Contracting (Dec)

– BA Level Nominations (Feb 2009)


ETNG Training

ETNG specific training will be held in Nashville July 15-17.

– Separate classes will include:

• General LINK® Training

• Segmentation

• Expanded Nominations and Confirmations

• Expanded Flowing Gas

• Expanded Capacity Release

2007 Training

– Between May 1, 2007 and December 31, 2007, East Tennessee specific training was provided to 32 external students from 19 unique companies in 7 training sessions.

– Training was also provided to 25 internal Spectra Energy students.


Quality Improvements

• We are committed to the quality of LINK®.

– 2008 Efforts• Regression Testing Project continues.• Proactive Error Detection and Reporting project underway.• Internal Knowledgebase project underway.• Employee goal payouts linked to system quality levels.

– 2007 Successes• 5845 hours spent by the Commercial Applications group developingRegression tests.

• 60% reduction in the number of application breaks during 2007 over the prior year.

• Less than a 10% error correlation between system test breaks identified by the LINK® group during system testing and breaks identified during the first production month.

• Additional level of integration testing implemented by Spectra’s Commercial Applications group.

• Additional procedures associated with application quality implemented.


Regulatory Update

Chris Pallenik


Wrap-up Items and Questions / IssuesNot Covered

Documents

2008 East Tennessee Natural Gas Customer Meetinginfopost.spectraenergy.com/downloads/ETNG_Customer_Meeting_05-21...Measurement System Enhancements Sarah Mohammed ... – Environmental