Kansas Economic Development AllianceKansas Economic Development Alliance

October 2012

About Kansas Gas ServiceAbout Kansas Gas ServiceKansas Gas Service is the largest natural gas distribution company in Kansas, providing clean, reliable natural gas to more than 630,000 customers in 360 communities. Kansas Gas Service is a division of Tulsa-based ONEOK, Inc. (NYSE:OKE), a diversified energy company involved in natural gas distribution, processing, gathering, storage and transportation primarily in the mid-continent areas of the United States.

Kansas Gas Service Facts Became part of ONEOK, Inc. in 1997 Largest natural gas distributor in Kansas, serving two-thirds of the state Has a workforce with nearly 1,000 employees

Overland ParkOverland Park

LeavenworthKansas City

AtchisonHiawathaMarysville

Emporia

Ottawa

Junction CityTopeka

Manhattan

Arkansas CityPratt Pittsburg

ParsonsEl Dorado

Wichita

HutchinsonGreat Bend

Abilene

Salina

McPherson

Concordia

Beloit

ONEOK Distribution CompanyONEOK Distribution CompanyONEOK, Inc. is a diversified energy company.

ONEOK is the general partner and owns 43.4 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded limited partnerships, which is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nation's premier natural gas liquids (NGL) systems, connecting much of the natural gas and NGL supply in the mid-continent with key market centers.

ONEOK is among the largest natural gas distributors in the United States, serving more than 2 million customers in Oklahoma, Kansas and Texas.

ONEOK's energy services operation focuses primarily on marketing natural gas and related services throughout the U.S.

ONEOK is listed on the New York Stock Exchange under the symbol OKE.

ONEOK is a Fortune 500 company.

647,000 customers647,000 customers

820,000 customers820,000 customers

563,000 customers563,000 customers

Kansas Gas Service Company

Oklahoma Natural Gas Company

Texas Gas Service Company

Kansas Gas ServiceKansas Gas ServiceDistribution and Transmission SystemDistribution and Transmission System

19,073 miles of pipelineSeven interstate pipeline connectionsThree intrastate pipeline connections

Where does natural gas come from?

What is transportation?

• An optional service where…..– Your marketer provides supply, storage, pipeline

transportation and billing– Kansas Gas Service provides local delivery,

metering and billing

What is a marketer?

• Marketer purchases natural gas from independent producers or major energy companies using contracts of varying lengths (daily, monthly, or longer) and varying prices

• Marketer arranges delivery of gas to assigned town border station

What marketer options are available?

• NYMEX based prices• Index based prices (various pipelines) • Fixed prices• Combinations of the above

– Splits– Options to lock-in fixed price

• Varying time lengths

Can anyone transport natural gas?

• Annual usage of more than 1,500 Mcf • Meters on contiguous property can be

consolidated for qualification• All K-12 schools or irrigators regardless of usage

Are there different rates for transport?

• Small Transportation Service (STk)– Service charge $23.35/mo/meter– All Mcf - $1.8010/Mcf

• General Service Transportation (GTk)– Service charge $20/mo/meter– All Mcf - $1.4562/Mcf

• Large Volume Transportation (LVTk) – Service charge $187/mo/meter– All Mcf - $0.7766/Mcf

Economic Development Rider

T-system rates are slightly higher because

they include some pipeline charges

Rates effective January 2007

Proposed rates January 2013??

What is a sales account?

• Kansas Gas Service provides supply, storage, pipeline transportation, local delivery, metering and billing

• Everything necessary to provide service is provided by one company with one bill

Process for handling Eco Devo Process for handling Eco Devo RequestsRequests

• Verify it is Kansas Gas Service territory• Contact engineering department• Convert usage data to Mcf

– Dekatherm– Therm– Btu– Mmbtu– Cf– M3

Process for handling Eco Devo Process for handling Eco Devo RequestsRequests

• Estimate monthly usage for Tariff Information• Information from Engineering Dept• Letter written and emailed

Eco Devo DirectorsEco Devo Directors

• Quickly notify of request• Notify of any changes • Deadline for response• Provide peak hour btu and pressure requirement• What is the anticipated operating hours, 24/7, 2 shifts,

etc.• “Can you serve response” or a cost estimate to extend

service• Do you need a map of existing service

Thank You!!