SALT LAKE CITY — Questar Pipeline, a subsidiary of Questar Corp. (NYSE:STR), today received the final approvals necessary to begin construction of its Main Line No. 104 (ML 104), a 75mile pipeline that will help satisfy the increased demand for natural gas along Utah's Wasatch Front.

On July 2, 2001, the Federal Energy Regulatory Commission (FERC) granted a notice to proceed on ML 104. The Bureau of Land Management (BLM) and the U.S. Forest Service granted final approval to start construction on public lands on July 10.

"We greatly appreciate the efforts of the Bureau of Land Management, the Forest Service, and state and local government offices," said Nick Rose, Questar Pipeline president and CEO. "We also want to thank Representative Jim Hansen for his leadership in moving this project forward, along with Representatives Chris Cannon and Jim Matheson, and Senators Bob Bennett and Orrin Hatch. All have recognized the critical need for this pipeline to increase capacity for Questar Gas customers along the Wasatch Front and, as a result, have helped expedite project approvals."

The estimated $80 million pipeline will start near Price, Utah, and run about 75 miles west to a proposed interconnect with Kern River Gas Transmission Co. near Elberta, Utah. It will run parallel to a portion of the company's Main Line No. 40, all of Main Line No. 41, then through a new 17mile pipeline corridor from Payson west to the Kern River Pipeline interconnect. All of the capacity on this new pipeline is under contract to shippers who need capacity for the upcoming winter season.

 The new pipeline will be 24 inches in diameter, with a maximum allowable operating pressure of 1,400 pounds per square inch. It will transport 272,000 decatherms of natural gas per day to customers.

At the company's Oak Spring Compressor Station near Price, workers began installing two highhorsepower compressor engines early last week. Now that approvals are final, crews will immediately begin constructing the 24inchdiameter pipeline so that service can begin as early as November 2001 —  in time for the winter heating season.

"We are extremely pleased to have this important pipeline project under way," said Rose. "Not only will it help meet the rapidly increasing energy needs of customers along the Wasatch Front, it will also help other locations in the West."

Questar Pipeline is a wholly owned subsidiary of Questar Corp., a Salt Lake City-based integrated energy resources and services company with $2.5 billion in assets.

###