Long-Term Supply Long-Term Supply

Presented To:Presented To:

Wyoming Pipeline AuthorityWyoming Pipeline Authority

Municipal Gas Municipal Gas Authority of GeorgiaAuthority of GeorgiaCity of Hamilton, OhioCity of Hamilton, Ohio

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Presentation OutlinePresentation Outline

Who Are We?Who Are We?

Why Are We Here?Why Are We Here?

What Are We Looking For?What Are We Looking For?

How Do We Proceed?How Do We Proceed?

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Who Are We?Who Are We?

Purchasers of natural gas for residential, Purchasers of natural gas for residential, commercial, industrial and power generation commercial, industrial and power generation

consumers.consumers.

City of Hamilton, OhioCity of Hamilton, Ohio

andand

Municipal Gas Authority of GeorgiaMunicipal Gas Authority of Georgia

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Full service city providing natural gas, electricity and water Full service city providing natural gas, electricity and water to its citizensto its citizens

Owns and operates largest municipal gas distribution Owns and operates largest municipal gas distribution system in the State of Ohiosystem in the State of Ohio

Serves approximately 23,000 residential, commercial and Serves approximately 23,000 residential, commercial and industrial customers with peak day requirements of industrial customers with peak day requirements of approximately 42,000 Dthapproximately 42,000 Dth

Located near the Lebanon HubLocated near the Lebanon Hub

Has citygate interconnections with Texas Gas Transmission Has citygate interconnections with Texas Gas Transmission and Texas Easternand Texas Eastern

Acquisition of Midwestern Gas Transmission by Northern Acquisition of Midwestern Gas Transmission by Northern Border Pipeline offers access to Chicago market centerBorder Pipeline offers access to Chicago market center

Who Are We?Who Are We?

City of Hamilton, OhioCity of Hamilton, Ohio

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Who Are We?Who Are We?

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Who Are We?Who Are We?

Non-Profit, Tax-Exempt Joint-Action AgencyNon-Profit, Tax-Exempt Joint-Action Agency Formed in 1987 by Georgia StatuteFormed in 1987 by Georgia Statute

• Full faith and credit pledge of Members Full faith and credit pledge of Members

Product of Industry RestructuringProduct of Industry Restructuring• Pipelines no longer wholesale supplierPipelines no longer wholesale supplier

• Economies of scaleEconomies of scale

Mission Statement:Mission Statement:

To provide municipalities a reliable, economical supply of To provide municipalities a reliable, economical supply of natural gas natural gas and to assist them in developing and growing and to assist them in developing and growing their gas systems to their gas systems to optimize the benefits of public ownership.optimize the benefits of public ownership.

Municipal Gas Authority of GeorgiaMunicipal Gas Authority of Georgia

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Who Are We?Who Are We?

Number of Members/PartnersNumber of Members/Partners 83 83 Retail Customers Served by MembersRetail Customers Served by Members 198,194 198,194 Annual ThroughputAnnual Throughput 58,766,000 58,766,000

MMBtuMMBtu Peak Day VolumesPeak Day Volumes 275,000 MMBtu 275,000 MMBtu Annual RevenuesAnnual Revenues $200 Million $200 Million Total AssetsTotal Assets $918 Million $918 Million Ratings:Ratings:

• Moody’sMoody’s A1A1

• Fitch IBCAFitch IBCA A+A+

• Standard & PoorsStandard & Poors AA

Municipal Gas Authority of GeorgiaMunicipal Gas Authority of Georgia

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Who Are We?Who Are We?

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Why Are We Here?Why Are We Here?

Wyoming Supplies Are A Good FitWyoming Supplies Are A Good Fit• Long-life reservesLong-life reserves• Growing production over the next several yearsGrowing production over the next several years

Long-Term Reliable Gas Long-Term Reliable Gas SuppliesSupplies

• Hamilton, OH annual Hamilton, OH annual requirements of 3.5 Bcf; 23,000 requirements of 3.5 Bcf; 23,000 customerscustomers

• Gas Authority annual Gas Authority annual requirements of 60 Bcf; 200,000 requirements of 60 Bcf; 200,000 customerscustomers

• In the business for the long In the business for the long haul!haul!

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Why Are We Here?Why Are We Here?

1991-19971991-1997• Over 12 transactionsOver 12 transactions• Over $1.2 BillionOver $1.2 Billion

Secured Prepayment StructureSecured Prepayment Structure• 10-12 Year Term10-12 Year Term• Fixed or Seasonally Adjusted VolumesFixed or Seasonally Adjusted Volumes• Swap to Convert Price Back to FloatingSwap to Convert Price Back to Floating• SecuritySecurity

AA rated or better surety bond (not available)AA rated or better surety bond (not available) AA rated or better corporate guarantee (not available)AA rated or better corporate guarantee (not available) Proved, developed and producing propertiesProved, developed and producing properties

2001-20022001-2002• Madison Energy Advisors/Ziff Energy Reserve Acquisition StudyMadison Energy Advisors/Ziff Energy Reserve Acquisition Study• Coalbed Methane Reserve Acquisition (working interest ownership)Coalbed Methane Reserve Acquisition (working interest ownership)

Secured Prepayment to Reserve AcquisitionSecured Prepayment to Reserve Acquisition

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Why Are We Here? Why Are We Here?

Interested in Partnering with ProducersInterested in Partnering with Producers• Looking to monitize a portion of existing assetsLooking to monitize a portion of existing assets• Looking to acquire new reservesLooking to acquire new reserves

Our Preferences in a PartnerOur Preferences in a Partner• Operates reservesOperates reserves• Retains significant working interest in properties, handles Retains significant working interest in properties, handles

accountingaccounting• Interested in enhancing productionInterested in enhancing production• Interested in retaining all liquidsInterested in retaining all liquids

Our Strength as a PartnerOur Strength as a Partner• Interested mainly in less risky reserves with more assured Interested mainly in less risky reserves with more assured

production levels (PDP) and lower decline curvesproduction levels (PDP) and lower decline curves• Strong creditStrong credit• Lower cost of capitalLower cost of capital

PartneringPartnering

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What Are We Looking For?What Are We Looking For?

VolumesVolumes• Hamilton, OhioHamilton, Ohio

10,000 Mcf/day10,000 Mcf/day

• Gas AuthorityGas Authority 30,000 – 50,000 Mcf/day30,000 – 50,000 Mcf/day

• Potential for growth through partnering with Potential for growth through partnering with other agencies and municipal gas systemsother agencies and municipal gas systems

StructuresStructures• Secured prepaymentSecured prepayment• Preferential ORRIPreferential ORRI• Working interestWorking interest

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How Do We Proceed?How Do We Proceed?

Contact:Contact:A. Scott Rothey (Hamilton, OH)A. Scott Rothey (Hamilton, OH)PrincipalPrincipalA. Scott Rothey and Associates, LLCA. Scott Rothey and Associates, LLC(419) 422-6439(419) 422-6439www.hamilton-city.orgwww.hamilton-city.org

Arthur Corbin, President and Chief Executive OfficerArthur Corbin, President and Chief Executive OfficerMike Frey, Vice President, Gas Supply and OperationsMike Frey, Vice President, Gas Supply and OperationsMunicipal Gas Authority of GeorgiaMunicipal Gas Authority of Georgia(770) 590-1000(770) 590-1000www.gasauthority.comwww.gasauthority.com

Conference call/meetings to discuss in more detail Conference call/meetings to discuss in more detail and and explore common interestsexplore common interests