Through its various holdings and joint interests, Kinder Morgan CO2 has become the leading transporter and marketer of carbon dioxide in the United States. The company delivers more than 400 million cubic feet per day to its oilfield customers. The innovative leader in the industry, Kinder Morgan CO2 has confirmed that CO2 flooding is a proven and increasingly cost-attractive technology for boosting oil production in maturing fields.

Accordingly, the company's supply and transportation activities are primarily focused in the Permian Basin in West Texas and eastern New Mexico. The Permian Basin produces approximately one million barrels of oil per day (bopd), which represents about 20 percent of the total U.S. oil production, excluding Alaska. More than 15 percent of this production -- about 150,000 bopd -- is attributable to several ongoing CO2 flooding projects. Other viable regions for CO2 projects include Kansas, Utah and Oklahoma. Additionally, California may present opportunities for developing a CO2 supply infrastructure.

Kinder Morgan CO2 Company's core strengths are supported by its vast CO2 pipeline network, the most extensive in the industry. The network embraces more than 1,100 miles of pipelines and a net recoverable CO2 reserve base in excess of five trillion cubic feet. The company also owns a 450-mile crude oil pipeline in the Permian Basin. Kinder Morgan CO2 owns or has interests in several resources that contribute measurably to its emergence in a reserve replacment program. These assets include the following:

• Significant interests in the Cortez and Bravo pipeline systems, which transport CO2 to West Texas and New Mexico.
• 100 percent of the Central Basin Pipeline and an 89 percent interest in the Canyon Reef Carriers Pipeline which connects to the Central Basin Pipeline in McCamey, Texas. These pipelines transport CO2 throughout the Permian Basin.
• A 45 percent operated working interest in the McElmo Dome Unit source field located in southwest Colorado. One of the largest accumulations of nearly pure CO2, the field supplies the Permian Basin. The company also owns an 11 percent interest in the Bravo Dome Source Field, which supplies both the Permian Basin and the Oklahoma markets.
• An approximate 97 percent interest in the SACROC Unit, one of the largest oilfields and one of the oldest operating CO2 injection projects in the U.S. SACROC still has significant undeveloped CO2 flood reserves. In addition, Kinder Morgan CO2 Company owns approximately 50 percent of the Yates Field Unit, which produces approximately 20,000 bopd and holds great potential as a large CO2 flooding project.