November 29, 2001
(N)
NYSE:STR
01-28

Contact: Chad Jones
Office: (801) 324-5495

QUESTAR'S MAIN LINE 104 IN SERVICE
New pipeline will bring more gas to northern Utah

SALT LAKE CITY — Questar Pipeline has completed construction and placed into service its new Main Line 104 (ML 104), a natural gas pipeline bringing critical supplies to Utah natural gas customers and other markets in the West.

The 77-mile, $85 million pipeline, which went into service on Nov. 15, has the capacity to transport 272,000 decatherms of natural gas per day — all of which is under contract.

The pipeline starts near Price, Utah, at the company's Oak Spring Compressor Station. As part of the project, the company installed two new compressors which provide 9,300 horsepower of additional compression. The first 59 miles of ML 104 runs between Price and Payson, Utah, parallel to an existing Questar pipeline. It then runs about 18 miles west and ties into the Kern River pipeline near Elberta, Utah.

According to Questar Pipeline President and CEO Nick Rose, building the pipeline will help meet the expanding needs of Utah customers while providing greater access to additional low-cost supplies.

"The demand for affordable natural gas continues to grow during this cold winter season and year-round because of its environmental benefits, reliability and efficiency," Rose said.

"We appreciate the help and cooperation of local, state and federal officials and agencies who worked with us to complete this project," he said. "Thanks to their support, we have a new pipeline that provides greater access to additional, moderately priced gas supplies."

Rose said approximately 10 percent of the gas that warms Utah customers' homes could be moving though ML 104.

In addition to the natural gas pipeline's obvious benefits, it has provided less noticeable gains to communities along the pipeline route. The construction project generated one-time use taxes of about $1.3 million. Roughly another $400,000 in annual property taxes will flow to area counties and the state.

Questar Pipeline is a wholly owned subsidiary of Questar Corp. (NYSE:STR). Questar Corp. is a $2.9 billion diversified energy company headquartered in Salt Lake City. Through its subsidiaries, it engages in energy development and production; gas gathering and processing; wholesale gas, electricity and liquids trading; retail energy services; interstate gas transmission and storage; retail gas distribution; and information systems and technologies.

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