®®

QUESTAR GAS

Transportation Balancing

Susan Davis, Director, Account & Community Relations

February 28, 2014

We develop, transport and deliver clean energy

2®

Questar’s Pipeline System

®

The Flow of Natural Gas

3

City Gate

4

® 5

Questar Rate Structure

Firm Interruptible

Sales GS, FS Residential/Commercial

Commercial/Industrial IS

Minimum Annual DTH7000

Annual ContractsMarket Based

Transportation FT-1, TS

(with firm demand)

Minimum Annual Volumes 120,000 DTH (FT-1)

TS Large Commercial/Industrial

GS - Daily volumes not to exceed 1,250 DTH in any one day during the winter season.

FS - Daily volumes not to exceed 2,500 DTH in any one day during the winter season. Qualifications: Annual dth over 2,100 dth, Load Factor 40% or higher

® 6

®

Transportation Balancing Restrictions

Daily … typically +/- 5%.

- Can be restricted to no over or under deliveries based on system operating constraints.

- Violations of the daily restrictions are subject to penalties as provided in the tariff.

®

Transportation Balancing Restrictions (continued)

Monthly… must be within +/- 5%.

- Imbalances may be traded through 15 days after month end closing.

- Balances not traded within that time are subject to cash out or gas sale provisions provided in the tariff.

®®

Interruption Procedures

®

Deliveries to the city gate are the responsibility of the transportation customer.- If gas is not delivered to the city gate, QGC is not

responsible to supply gas to TS customers, even if customer has firm capacity on QGC.

- Gas delivered to TS customers may be limited to contracted firm amount or daily nomination, whichever is less.

- QGC release capacity is recallable.- Flexed firm capacity is firm, but it is a lower priority.

Supply Curtailment vs. Interruption

®

QGC History of Interruptions

December 5, 2013 Supply Curtailment

Winter 2000-01 three interruptions- Two Northern- One Southern

January 1997 for 36 hours- First partial interruption

December 1990 for 9 days- First interruption since 1982

®

Interruption Process

Winter interruption season:- November through March

But interruptions can happen any time during the year

Simultaneous interruption- Both sales (IS) and transportation (TS)

Geographic interruption possible Partial interruption possible

®

Interruption Procedures

Customers will be notified by QGC account management personnel – day or night

Notify QGC if interruption contacts change – educate all involved in the process

Two-hour maximum allowance to interrupt gas service

®

Failure to Interrupt

Penalty- Distribution non-gas component: $15/dth- Supplier non-gas component: $5.71- Gas-cost component: Highest purchased gas during

period of interruption = $4.75 on Dec. 5, 2013- Total = $25.46/dth

Meter shut-off may be used to maintain system integrity

®

Gas Supply Discussion

Nominations/Scheduling Process- NAESB Cycles

▪ (North American Energy Standard Board)

Events of December 5th, 2013

15

®

8am 12pm 8pm 12am 8am 12pm 8pm 12am

- December 4,2013 - December 5, 2013

Timely Nominations (Cycle 1)

Sent by 10:30 amto the TSP by 10:45 amScheduled at 3:30 pm

8:00 am GD2 Gas Flow

Evening Nominations (Cycle 2) Sent by 5:00 pm

to the TSP by 5:15 pmConfirmations by 8:00 pm

Scheduled by 9:00 pm

8:00 am GD2 Gas Flow

Intraday 1 Nominations (Cycle 3)

Sent by 9:00 amto the TSP by 9:15 am

Confirmations by 1:00 pmScheduled by 1:00 pm

4:00 pm GD2 Gas Flow

Intraday 2 Nominations (Cycle 4)

Sent by 4:00 pmto the TSP by 4:15 pm

Confirmations by 7:00 pmScheduled by 8:00 pm

8:00 pm GD2 Gas Flow

10:0

0 am

Nom

inat

ions

in fo

r Dec

5th (G

D5)

- 15

4,95

3 D

th

Eve

ning

Nom

s fo

r (G

D5)

- 13

9,94

5 D

th

Red

uctio

ns f

or (

GD

5) -

2,34

8 D

th

9:45

am

QG

C n

otifi

ed b

y Q

EP

of c

uts

at B

lack

s

Fork

and

Red

Was

h pl

ants

- Q

GC

sta

rted

wor

king

with

sch

edul

ing

to d

eter

min

e

th

e ex

tent

of c

uts

for t

rans

porta

tion

cust

omer

s

6:00

am

– Q

GC

Gas

Sup

ply

notic

es re

duce

d

flow

from

Bla

cks

Fork

(Pip

evie

wer

)

7:30

am

QG

C G

as S

uppl

y pu

rcha

ses

gas

(ID1)

to

mak

e up

for a

ssum

ed c

uts

at B

lack

s Fo

rk

8:30

am

and

10:

00 a

m L

eRoy

and

Cha

lk C

reek

aqui

fers

to w

ithdr

awal

(Coa

lvill

e w

as a

lread

y on

with

draw

al)

12:0

0 pm

- A

list o

f cus

tom

ers

that

requ

ired

redu

ctio

ns

was

sen

t to

Que

star

Gas

acc

ount

rep

rese

ntat

ives

1:00

pm

- O

ffici

al c

ut n

otifi

catio

ns w

ere

sent

out

to

trans

porta

tion

cust

omer

’s a

gent

s as

par

t of t

he

conf

irmat

ion

of th

e ID

1 cy

cle

7:00

pm

- Q

uest

ar G

as n

otifi

ed c

usto

mer

s th

at th

ey

coul

d re

sum

e us

age

to m

atch

thei

r inc

reas

ed s

uppl

y

that

was

sch

edul

ed to

arr

ive

at 8

pm.

Gas Day 1 Gas Day 2

®®

QUESTIONS?

Thank You.