EFTA01387694.pdf

(ConocoPhillips Optimized Cascade Process) • Bechtel has built one-third of the world's liquefaction plants, is currently ahead of the guaranteed construction schedule for the first four trains of (with the first two trains complete), and previously built the Sponsor's existing regasification facilities at the Sabine Pass LNG terminal on time and within budget. Bechtel has never been called to pay delay or performance Liquidated Damages Elba The project is an expansion of an • Fixed price, lump sum, date- existing facility — infrastructure certain EPC Contract with delay interconnections and LNG storage Liquidated Damages. tanks are already in place. The Project's • Backstopped by parent construction is currently 35% guaranty from IHI (Japanese Corp complete. Rating of A-) for full payment and performance and letter of credit for 12.5% of contract price • EPC work is generally mechanical in nature and IHI is a reputable and experienced EPC Contractor (worked on other LNG projects worldwide, including Gulf LNG, Cove Point, Adriatic LNG, and more) • The Project has a budgeted contingency of $41.7 million and a key Kinder Morgan (joint owner) subsidiary has pledged to fund an additional $68.0 million in cost overruns, with no dilution to the Borrower. • Kinder Morgan and the Borrower are committed to providing an additional $62.6 million on a pro rata basis, resulting in a total contingency amount of $172.3 million, well above the independent engineer's identified target amount of $86.5 million CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0090786 CONFIDENTIAL SDNY_GM_00236970 EFTA01387694