Questar’s Gas Storage Facilities in the West

Brent KitchenSupervisor, Pipeline Marketing

UTAH COLORADO

Peaking Storage (3) Salt Cavern Storage

(Proposed)

Clay Basin

WYOMING Kanda HubProposed

Questar Pipeline Storage Facilities

Present Storage Facilities

1125psig1144psig1540psig2600 psigPressure

1.18BCF2.74BCF6.41BCF117.5BCFTotal

1.27BCF2.13BCF5.62BCF66.21BCFCushion

.256BCF.692BCF.836BCF51.25BCFWorking

35MMCFD65MMCFD75MMCFD765MMCFMax. W/D

5501600383032,500Horsepower

KelvinLongwallThaynesDakotaFormation

AquiferAquiferAquiferDepleted Gas

Type

Chalk Creek

CoalvilleLeroyClay BasinName

Clay Basin Storage Facility

UTAH

COLORADO

WYOMING

Salt Lake City140 Miles

Rock Springs50 Miles

Clay Basin is connected to both Questar and Northwest Pipeline.

Clay Basin Storage Facilities Five 2,600 HP

reciprocating compressors

Three 6,500 HP turbine compressors

One Park and Loan compressor

89,000 feet of 6 and 10-inch field lines

29 field dehydration units 44 injection and

withdrawal wells

Clay Basin’s Geology

The Clay Basin Field is a anticlinal domeabout four miles long and two miles wide that underlies some 4,680 acres.

Present Customer Mix

Primary Firm Storage Service Customers

3

5

5

1

Producers

Marketers

LDC's

Power Co.

Present Customer Mix

Interruptible Storage Service Customers2

22

1

1

9

LDC's

Marketers

Power Co.

Industrials

Producers

Clay Basin Storage

Clay Basin January Averages

CLAY BASIN JANUARY ENDING INVENTORY (PAST 6 YEARS)

0

10

20

30

40

99 00 01 02 03 04

Clay Basin Service Opportunities

Firm Storage Service Capacity Release Interruptible Storage

Service Release of

Injection/Withdrawal rights

In-place Transfers Park and Loan (PAL1)

Questar Hub Services

Questar offers two types of Park and Loan service levels, PAL1 and PAL2.

Service Priority; FSS, PAL1, ISS, PAL2.

Questar’s Representative for PAL services is Marty Anderson 801 324-2017

Questar’s Future Storage Projects

Questar Pipeline is currently exploring two storage projects to meet the needs of its customers Southwest Wyoming Salt Cavern project near

Evanston, Wyoming (salt cavern) Kanda Hub Storage Project near Rock Springs,

Wyoming (depleted gas field)

Questar Project Status

Work is continuing on both storage projects, however the primary focus is on the depleted gas storage project with the potential to tie to multiple large diameter pipelines

Assuming that gas prices decline and stabilize in the near future, an open season is anticipated in 2004 for the Kanda Hub Project

Why Salt?

Caverns can be emptied and refilled quickly High injection and withdrawal rates make them

well-suited to meet peaking requirements multiple times during the same demand period

Salt is an excellent sealant Impervious to natural gas and seals itself

(“creep”) The salt is strategically located

Project History

Drilled and analyzed core hole test well in Pruess Formation 3,000 ft deep, 2,000 ft thick

Conducted initial project feasibility studies Consultant: Sofregaz US Inc.

Acquired necessary leases and rights Leases for caverns and disposal wells Options for water rights from City of Evanston

Project Feasibility

Salt Water Brine disposal Location

Proposed initial pipelines ties are Kern River and Questar Pipeline

As market demand requires we will tie to the other major pipelines in the area

Capacity and Deliverability

Potential for five caverns Sequential cavern development

Storage capacity of 2.5 Bcf working gas and

1.1 Bcf cushion gas per cavern Deliverability of 250 MMcf/day per cavern Injection of 125 MMcf/day per cavern

Current Status

Disposal test well to Nugget Formation Core and log Twin Creek and Nugget Formations Open-hole injectivity test of Nugget Disposal options: Reinjection, settling ponds

and/or combination of these Engineering design

Preliminary cavern design and brine disposal

Pipeline routes and operating facilities (Questar)

Rock Springs Storage Project

Preliminary engineering underway to determine project capacity, cost and timing

Projected size ranging from 15 Bcf to 20 Bcf working gas

Anticipated interconnects with Questar Pipeline, Overthrust, CIG, WIC and Overland Trail

Projected in service 2007 - 08

Summary

Questar Pipeline is focused on providing transportation and storage service that will improve market access for Rocky Mountain gas supply. Implementing solutions to meet customer needs continues to be our goal in a challenging environment. We look forward to working with our energy partners to find those solutions.