North Dakota Pipeline AuthorityJustin J. KringstadMarch 10, 2011

House Energy and Natural Resources

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March 9, 2011: 172 Drilling Rigs

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North Dakota Crude Oil

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ND

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/ba

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Da

yNorth Dakota Oil Production and Price

History Bakken - Three Forks P10 Bakken - Three Forks P50

Bakken - Three Forks P90 $/Barrel History & DOE-EIA Projected $/Barrel P50

$/Barrel P10

Forecasting Williston Basin Oil Production, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

Today

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Forecasting Williston Basin Oil Production, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

Today

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Challenges*

1) Moving oil out of the

Williston Basin

2) Moving oil within the

Williston Basin

*Modified from Bridger and Belle Fourche Pipelines

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1

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Several Exciting Developments For Post 2010 Crude Oil Transport

Enbridge Bakken Expansion Program

Keystone XL Marketlink

True Co.’s Baker 300

Plains Bakken North

Unit Train Development8

Williston Basin Oil Production & Export Capacity, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

*Projects still in the proposed or internal review process

Today

Pipeline Transportation Only

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1010

Rail Transportation

EOG – Stanley, ND

Dakota Transport Solutions – New Town, ND

Existing & Planned Rail Locations

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Existing1) Stampede

2) Donnybrook

3) Ross

4) Stanley – EOG

5) Minot – ND Port Services

6) Dore

7) New Town – Dakota

Transport Solutions

8) Beulah

Planned1) Trenton – Savage

2) Epping – Rangeland

3) Tioga – Hess

4) Dickinson - EDOG

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2

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6 7

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1 2 3

4

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Existing & Planned Rail Locations

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1

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2007 2008 2009 2010 2011 2012

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Rail Loading Capacity

Williston Basin Oil Production & Export Capacity, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

*Projects still in the proposed or internal review process

Today

13

Williston Basin Oil Production & Export Capacity, BOPD

Production forecast is for visual demonstration purposes only and shouldnot be considered accurate for any near or long term planning.

*Projects still in the proposed or internal review process

Today

Pipeline Transportation Only

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North Dakota Crude Pricing

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ND Tax Department Average Crude Oil Discounts - 90% NYMEX

Natural Gas Projects

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ND Gas Production

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Sold

Natural Gas Challenges

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$2.3 - $2.7+ BILLION In the Next 1-3 Yrs 20

Natural Gas Processing

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Plant Capacity

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Consumer Quality Natural

GasMethane

Ethane

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Natural Gasoline

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Natural Gas ProcessingWith Ethane Extraction

Natural GasLiquids

“Y-Grade” if left

unfractionated

ND Gas Gathering Statistics

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Wells With Gas Sales

Wells Without Gas Sales

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North Dakota Natural Gas

Processing and Gathering

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Mountrail/Burke Counties

Bear Tracker Energy150+ Well Connections in

2011

Tie into Pecan’s Stanley Facility

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McKenzie County

ONEOK Garden Creek Plant

Q4 2011: 100 MMCFD

Hiland Partners Watford City Plant

Q2 2011: 50 MMCFD

Saddle Butte PipelineQ2 2011: 45 MMCFD

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Williams County

ONEOK Stateline I PlantQ3 2012: 100 MMCFD

ONEOK Stateline II PlantQ4 2012: 100 MMCFD

Hess Tioga PlantCurrent: 110 MMCFDQ4 2012: 250 MMCFD

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Stark County

Whiting Belfield PlantQ4 2011: 30 MMCFD

Bakken ExpressNatural Gas Trucking

Petro Hunt Little Knife Plant

North Dakota Pipeline Authority

600 E. Boulevard Ave. Dept. 405Bismarck, ND 58505-0840

Phone: (701)220-6227Fax: (701)328-2820

E-mail: jjkringstad@ndpipelines.com

Website: www.pipeline.nd.gov

Thank You!