FAQ

Q. How deep will the pipeline be buried?

A. The Company expects to exceed the U. S. Department of Transportation requirement that pipe be buried three feet deep in rural areas such as those crossed by this project. Typically, the Company expects to bury the top of its pipe approximately four feet below the surface.

Q. Will the pipe be buried deeper in areas where wind erosion is common?

A. Again, the pipe will be buried below the depth required by the USDOT. The company expects this depth will be adequate to assure safe operation and maintenance.

Q. Will owners be able to conduct activities that might remove cover, such as terracing, over the pipeline right of way?

A. It is important for the Company and for the landowner that the cover over the pipeline be maintained at least to the USDOT standard. Anyone planning activities for their land that might result in less cover should raise such issues with the Company land agent so that planning can be made for the installation of the pipe. Once the pipe is installed, the owner should call his or her state's one call authority prior to any excavation on their property, particularly in the vicinity of this easement or utilities located on their property.

Q. Can the owner install fencing on the right-of-way?

A. Yes. However, it is important that the one call authority be called. Fence posts should not be installed directly over the pipe, and fencing should not be installed in a linear fashion parallel to and above the pipe.

Q. Who is responsible for replacing fencing taken down or damaged during construction?

A. The Company will require that the contractor fencing crew come through prior to construction, installing gates for construction, with proper H-bracing to assure that the remainder of the fence remains sound. These gates will be kept closed during construction. Once construction is complete, the contractor fencing crew will be required to return and restore the fences to their prior condition or better.

Q. How wide is the right-of-way?

A. The Company expects to use a one hundred foot wide right-of-way for construction, with additional space near roads, canals, streams, wetlands and rougher terrain. This right of way will be graded back to its original contour and will be reclaimed, including seeding and mulching the right of way. The Company proposes to acquire a fifty foot permanent easement for the pipeline.

Q. How will compensation for the easement be determined?

A. The Company has arranged for market analyses of representative properties throughout the length of the project. These analyses will serve as guidelines for the value of the property. On this basis, Company land agents will contact each landowner to negotiate a proposed compensation. The Company will obtain an easement based upon a one time payment.

Q. Does the Company expect to obtain multiple line grants or grants that allow installation of other unrelated facilities such as commercial fiber optic cable?

A. No. The proposed easement is for one pipeline and related appurtenant facilities.

Q. How will damages to crops and property be determined?

A. The Company will negotiate in good faith to determine and compensate for damages, including crop loss or property damage. Crop damages are typically based upon neighboring production and upon historic production of the property.

Q. How will the Company protect or compensate for damage to water lines associated with home ownership or irrigation?

A. The Company land agents and surveyors will be asking the owners for any information they might have on existing water lines and other buried facilities. These will be marked and protected during construction. As we request of landowners digging near our easement, the Company will make contacts with the one call authority and arrange for marking of any know underground facilities reportable under that system. Should any existing water lines or other utilities be cut during construction, the Company is responsible for damage and will make repairs or arrange for repairs as quickly as possible.

Q. Who is responsible for future diminished crop loss associated with the construction, or for settling of the right-of-way after construction?

A. In both cases, the Company remains responsible for any damage associated with the construction of the pipeline.

Q. After the pipeline is constructed, when crews return to perform maintenance, will the Company be responsible for related damages?

A. Yes. The landowner will typically be contacted prior to scheduled maintenance activities and will be contacted to negotiate damages once those activities are complete. In an emergency, an effort will be made to contact the owner. However, in that situation, the Company's first concern will be to maintain the pipe. Again, once the work is done on such an emergency, the owner will be contacted to negotiate damages.

Q. How will backfill replaced in a circle irrigated field be adequately compacted to allow passage of the pivot?

A. The Company will work with the owner on the methods used to restore a field irrigated by a center pivot. Previously, this restoration has involved supporting the right-of-way at wheel crossings with material such as sandbags. The Company is planning, for this project, to require the Contractor to be prepared to compact the ditch line so no settlement occurs.

Q. Does the Company have the power of eminent domain?

A. Under the Natural Gas Act, the Company does have such power. However, the Company makes every effort to negotiate in good faith and would much prefer to avoid using this authority.

Q. How far away can structures be placed from the pipeline?

A. As described above, the Company proposes to acquire a fifty-foot wide permanent easement throughout. No permanent structures such as homes, barns, or foundations should be installed on this easement. Beyond the boundaries of the easement, structures can be installed in accordance with local zoning or platting rules and regulations. Again, any ancillary facilities that might be permitted on the right-of-way such as utilities should not be installed until the one call authority has been contacted.

Q. What is the operating pressure of the pipeline?

A. This is addressed in Resource Report 1 of the Application for a Certificate of Public Necessity and Convenience filed with FERC.

Q. What is the pipe wall thickness?

A. Wall thickness will vary throughout the project, with thicker walls at road crossings and in areas with greater population concentrations. (Specific details on pipe wall thickness are provided in Attachment 4 to Resource Report 1.)

Q. How long will it take to construct through my county?

A. Construction is expected to start on July 5, 2004 for the middle and southern spreads and on July 15, 2004 on the northern spread. Construction will then take approximately six months. During that time, some form of construction will probably be occurring in each county through the entire period. The main activities of the spread (stringing, trenching, welding, lowering, backfill) will probably take approximately two months in each county, moving from west to east.

Q. What is the potential tax impact to the local governments, particularly counties?

A. The Company pays property taxes to the state governments in both Colorado and Kansas. These payments are made covering the entire pipeline system and are distributed to the counties by the state, as we understand, on a mileage basis.

Q. What kind of work force do you propose and how many would be local?

A. The work force would be approximately 1647 employees, divided over three construction spreads as well as the crews needed to install the compressor station. The contractor actually does the hiring for these spreads based upon needed tasks and skills. Typically, the contractor does hire a portion of the workforce locally, but the actual amount depends on the skills available and the numbers needed by the contractor.

Q. How do those workers get housed?

A. Typically, the workers locate their own housing in the areas where construction occurs. They often locate at trailer parks and recreational facilities, or occasionally will use apartments or hotels in the area.

Q. Where will you get water rights for the water to hydrostatic test?

A. The Company will purchase or obtain permits for any water rights needed to obtain water for testing the pipeline. Possible sources include irrigation wells or perennial streams. In the case of irrigation wells, the Company will approach the owner of the well to purchase water. At this time only one perennial stream appears capable of supplying a portion of the water needed, the South Platte River. If the Company desires to obtain water from the South Platte, the holders of calls on the water will be contacted to make arrangements to use that water.

Q. Will there be taps or delivery points along the line that farmers can connect?

A. At this time, the only delivery locations on this pipeline are at the pipeline interconnects in Kansas. Deliveries for local use would have to go through a local distribution company and can not be made to individuals along the route. The local distribution company would need to contact the Company's business development staff to arrange for any delivery facilities or contracts.

Q. Who deals with noxious weeds?

A. Before construction begins, the Company will conduct an inventory to determine locations of existing noxious weeds. Should any weed populations be found, the Company will work with owners to control those populations. Equipment brought in for the project will be washed to remove seeds prior to use on the right-of-way. Once construction is complete, in areas where noxious weeds appear on the right-of-way and in other areas disturbed by the pipeline construction, the Company will be responsible for their control, including any area where weeds spread from the right-of-way into neighboring areas.

Q. Will survey corners that have been removed or damaged be replaced?

A. Yes, at company expense and effort.

Q. Why not install a bigger pipeline to accommodate future expansion?

A. Constructing Cheyenne Plains as a 36-inch diameter pipeline will allow the pipeline to expand competitively with incremental compression up to a potential capacity of 1.7 billion cubic feet per day.

Q. What would be the spacing of future compressor stations?

A. At this time, the Company proposes only one compressor station, located at the beginning point at the Cheyenne Hub. Should additional market develop, the pipeline has been designed to allow installation of up to four additional stations. If these are ever developed, they would be installed at approximately 80 mile increments along the proposed line. Should the Company desire to install these additional compressor facilities, a new application and review would be required through the FERC.

Q. Besides compression, what other surface facilities are there and how frequent is the spacing?

A. New metering facilities will be installed at locations where the new pipeline interconnects with other pipelines. These are at the Cheyenne Hub and at seven locations in Kansas. In addition, the Company proposes to install pigging facilities at roughly 80 mile spacings. Block valves, located in 45' by 75' sites, will be located at approximately 17-mile spacings. Cathodic test leads will be installed approximately every mile, typically at fence crossings. Finally, pipeline markers will be installed at road crossings, canal crossings and fence crossings, so that at any point on the pipeline at least one marker will be visible.

Q. What is the life expectancy of this line?

A. The Company expects the lifetime of the pipe to be indefinite. With the coating, the cathodic protection and the maintenance programs currently in use, there is little likelihood of corrosion or deterioration of the pipe. Should the need for the pipe ever cease, the pipe could be abandoned in place or removed. The Company will be required to apply to the FERC and go through a new public review in such a case.

Q. Will the Company bore under or open cut irrigation canals?

A. This will be determined in negotiations with the owners and managers of the canals. If the canal is flowing, then the crossing will need to be bored. If not, it would depend on the permit requirements obtained from the owner or manager.

Q. Will roads be bored? If not, how will traffic be handled?

A. Paved roads and heavily traveled gravel roads will be bored. Other, less used unpaved roads may be open cut. As with canals, this will depend upon terms negotiated with the county or other managers of the roads.

Q. How do you reclaim in areas with mature trees, such as river bottoms?

A. The Company made a concerted effort to limit damage to large trees, particularly at river crossings. Where it is necessary to cut down a large tree, the Company will replace that tree with seedlings or another suitable planting agreed upon with the landowner, local authorities and the FERC.

Q. How wide of an area will be kept clear of large, thick vegetation after construction?

A. Typically, the Company will keep an area approximately thirty feet wide clear of large, thick woody vegetation.

Q. How will you handle access on private roads?

A. Where the Company proposes to use private roads for construction purposes, the rights to use such roads will be negotiated and purchased from the owner.

Q. Will pasture crossed by the construction be open for cattle?

A. Yes. Where cattle and other livestock are present, the Company will install or leave plugs in the open ditch to allow passage from one side to the other. As with all fences on the project, gates will be kept closed at all times.

Q. Can the Company schedule the construction to avoid most or all of growing season?

A. Construction will be scheduled to best meet time restrictions for several resources affected, including crops. However, construction is an assembly line activity and once started must proceed. While effort is being made to start later in the growing season in part to limit effects on crops, some crops will be affected. The Company is responsible for any such damage and will compensate the owner for losses caused by construction.

Q. Do you seed the right-of-way after construction?

A. Yes. Seeding will occur approximately two weeks after the right-of-way is cleaned up and re-contoured. The seed mix used is typically that recommended by the local Natural Resource Conservation Service office. Once seeded, disturbed areas will be mulched.