City of Hamilton, Ohio
Municipal Gas
Authority of Georgia
Long-Term Supply
Presented To:
Wyoming Pipeline Authority
Presentation Outline
 Who Are We?
 Why Are We Here?
 What Are We Looking For?
 How Do We Proceed?
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Who Are We?
Purchasers of natural gas for residential, commercial,
industrial and power generation consumers.
City of Hamilton, Ohio
and
Municipal Gas Authority of Georgia
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Who Are We?
City of Hamilton, Ohio

Full service city providing natural gas, electricity and water to its
citizens

Owns and operates largest municipal gas distribution system in the
State of Ohio

Serves approximately 23,000 residential, commercial and industrial
customers with peak day requirements of approximately 42,000 Dth

Located near the Lebanon Hub

Has citygate interconnections with Texas Gas Transmission and Texas
Eastern

Acquisition of Midwestern Gas Transmission by Northern Border
Pipeline offers access to Chicago market center
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Who Are We?
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Who Are We?
Municipal Gas Authority of Georgia
 Non-Profit, Tax-Exempt Joint-Action Agency
 Formed in 1987 by Georgia Statute
• Full faith and credit pledge of Members
 Product of Industry Restructuring
• Pipelines no longer wholesale supplier
• Economies of scale
 Mission Statement:
To provide municipalities a reliable, economical supply of natural gas
and to assist them in developing and growing their gas systems to
optimize the benefits of public ownership.
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Who Are We?
Municipal Gas Authority of Georgia
 Number of Members/Partners
 Retail Customers Served by Members
 Annual Throughput
 Peak Day Volumes
 Annual Revenues
 Total Assets
83
198,194
58,766,000 MMBtu
275,000 MMBtu
$200 Million
$918 Million
 Ratings:
• Moody’s
• Fitch IBCA
• Standard & Poors
A1
A+
A
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Who Are We?
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Why Are We Here?

Long-Term Reliable Gas Supplies
• Hamilton, OH annual requirements
of 3.5 Bcf; 23,000 customers
• Gas Authority annual requirements
of 60 Bcf; 200,000 customers
• In the business for the long haul!
 Wyoming Supplies Are A Good Fit
• Long-life reserves
• Growing production over the next several
years
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Why Are We Here?
Secured Prepayment to Reserve Acquisition

1991-1997
• Over 12 transactions
• Over $1.2 Billion

Secured Prepayment Structure
•
•
•
•
10-12 Year Term
Fixed or Seasonally Adjusted Volumes
Swap to Convert Price Back to Floating
Security
AA rated or better surety bond (not available)
 AA rated or better corporate guarantee (not available)
 Proved, developed and producing properties


2001-2002
• Madison Energy Advisors/Ziff Energy Reserve Acquisition Study
• Coalbed Methane Reserve Acquisition (working interest ownership)
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Why Are We Here?
Partnering
 Interested in Partnering with Producers
• Looking to monitize a portion of existing assets
• Looking to acquire new reserves

Our Preferences in a Partner
•
•
•
•

Operates reserves
Retains significant working interest in properties, handles accounting
Interested in enhancing production
Interested in retaining all liquids
Our Strength as a Partner
• Interested mainly in less risky reserves with more assured production levels
(PDP) and lower decline curves
• Strong credit
• Lower cost of capital
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What Are We Looking For?
 Volumes
• Hamilton, Ohio
 10,000 Mcf/day
• Gas Authority

30,000 – 50,000 Mcf/day
• Potential for growth through partnering with other
agencies and municipal gas systems
 Structures
• Secured prepayment
• Preferential ORRI
• Working interest
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How Do We Proceed?
 Contact:
A. Scott Rothey (Hamilton, OH)
Principal
A. Scott Rothey and Associates, LLC
(419) 422-6439
www.hamilton-city.org
Arthur Corbin, President and Chief Executive Officer
Mike Frey, Vice President, Gas Supply and Operations
Municipal Gas Authority of Georgia
(770) 590-1000
www.gasauthority.com
 Conference call/meetings to discuss in more detail and
explore common interests
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