QUESTAR PIPELINE RECEIVES FERC APPROVAL FOR NEW PIPELINE

SALT LAKE CITY — Questar Pipeline Company has received preliminary approval from the Federal Energy Regulatory Commission (FERC) to construct a 75-mile natural gas pipeline from the Price area in eastern Utah to a proposed interconnect with Kern River Gas Transmission Co. near Elberta, Utah. Final approval is contingent upon satisfactory completion of an environmental impact statement now being considered.

This proposed expansion of Questar Pipeline's interstate system will parallel an existing Questar pipeline for 57 miles from Price to Payson, Utah. From there, the pipeline will run about 18 miles west and tie into the Kern River pipeline. The $80 million project — referred to as "Main Line 104" — will be 24 inches in diameter, with a maximum operating pressure of 1,400 pounds per square inch.

The new pipeline is anticipated to be in service prior to the 2001/2002 winter-heating season. It will provide a minimum of 272,000 decatherms (Dth) per day of incremental firm gas transportation for delivery to Wasatch Front markets and the proposed interconnect. Sterling Construction of Sterling, Colorado, has been awarded the contract to construct the pipeline. Mountain West Construction of Fruita, Colorado, will design and install 9,300 horsepower of additional compression at Questar Pipeline's Oak Springs Compressor Station near Price, Utah.

"Demand for natural gas is at an all-time high. Because of its environmental benefits, natural gas has become a year-round commodity. This pipeline will move economical and  much-needed coal-seam gas from central Utah to the market," said Nick Rose, president and chief executive officer, Questar Pipeline. "The current energy crunch is an infrastructure problem as much as anything. We need more wells and pipelines to provide new outlets for the increasing natural gas production tied to our system. The additional pipeline capacity provided by Main Line 104 is critical to meet the growing needs of Utah's gas consumers."

Questar Pipeline is a wholly owned subsidiary of Questar Corp. (NYSE:STR). Questar is a Salt Lake City-based integrated energy resources and services company with $2.3 billion in assets.