Questar Announces Closure of Sale of Canadian E&P Subsidiary
Debt-Reduction Plan 'On Track'

SALT LAKE CITY — Questar Market Resources Inc., a wholly owned subsidiary of Questar Corp. (NYSE:STR), has closed on its previously announced agreement to sell its Canadian exploration and production (E&P) subsidiary, Celsius Energy Resources Ltd. (CERL). Consideration for 100% of the capital shares of CERL and the retirement of associated debt totaled $Cdn165.9 million (about $US105.6 million), subject to final postclosing adjustments, if any, to occur in December 2002. The purchaser is EnerMark Inc., a subsidiary of Calgarybased Enerplus Resources Fund.

"This transaction, together with the recent sale of our TransColorado Pipeline interest, puts us on track to reduce debt by over $200 million this year," said Keith O. Rattie, Questar president and chief executive officer. "This underscores management's commitment to maintain a strong balance sheet."

Questar is a diversified natural gas company headquartered in Salt Lake City with more than $3.1 billion in assets. Through subsidiaries, Questar engages in gas and oil development and production; gas gathering, processing and marketing; interstate gas transmission and storage; retail gas distribution, retail energy services; and information systems and technologies.