Through their respective subsidiaries, Questar Gas Management Company (QGM) and Mountain Gas Resources, Inc., the companies have formed Rendezvous Gas Services, L.L.C.

Each entity will contribute certain assets to the joint venture and Rendezvous will construct and operate gas pipeline and compression facilities with the capacity to transport approximately 275 million cubic feet (MMcf) per day of gas production from the Hoback Basin, which includes the Pinedale Anticline and Jonah Field areas. 

In addition, the joint venture will deliver gas for blending and processing services to the Granger and Blacks Fork processing plants. (Mountain is the 100 percent owner and operator of the Granger plant and QGM is a 50 percent owner and the operator of the Blacks Fork plant.)

Rendezvous has significant commitments of gas production from existing and future gas reserves in the Pinedale Anticline and other Hoback Basin areas. Currently, gas reserves from over 179,000 gross acres are committed to the joint venture under existing gathering dedications.

Rendezvous has approved capital expenditures of approximately $15.5 million for an initial phase of pipeline and compression expansions scheduled for initial construction in late 2001. A second expansion phase of approximately $28 million is currently being evaluated with construction expected to begin in mid-year 2002.

Questar Market Resources and Questar Gas Management are subsidiaries of Questar Corporation (NYSE:STR), a $2.9 billion diversified natural gas company headquartered in Salt Lake City. Through its subsidiaries, Questar engages in gas and oil exploration and development; natural gas gathering and processing; wholesale energy trading; retail energy services; interstate gas transmission and storage; retail gas distribution; and information systems and technologies. For additional company information, visit Questar's Web site at www.questar.com.

Forward-Looking Statements:

This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. A discussion of risks and uncertainties, which could affect future results of Questar and its subsidiaries, is included in the company's periodic reports filed with the Securities and Exchange Commission.