1. Questars Gas Storage Facilities in the West Brent Kitchen Supervisor, Pipeline Marketing

2. UTAH COLORADO Peaking Storage (3) Salt Cavern Storage (Proposed) Clay Basin WYOMING Kanda Hub Proposed Questar Pipeline Storage Facilities

3. Present Storage Facilities 1125psig1144psig1540psig2600 psigPressure 1.18BCF2.74BCF6.41BCF117.5BCFTotal 1.27BCF2.13BCF5.62BCF66.21BCFCushion.256BCF.692BCF.836BCF51.25BCFWorking 35MMCFD65MMCFD75MMCFD765MMCFMax. W/D 5501600383032,500Horsepower KelvinLongwallThaynesDakotaFormation Aquifer Depleted Gas Type Chalk Creek CoalvilleLeroyClay BasinName

4. Clay Basin Storage Facility

5. UTAH COLORADO WYOMING Salt Lake City 140 Miles Rock Springs 50 Miles Clay Basin is connected to both Questar and Northwest Pipeline.

6. Clay Basin Storage Facilities Five 2,600 HP reciprocating compressors Three 6,500 HP turbine compressors One Park and Loan compressor 89,000 feet of 6 and 10- inch field lines 29 field dehydration units 44 injection and withdrawal wells

7. Clay Basins Geology The Clay Basin Field is a anticlinal dome about four miles long and two miles wide that underlies some 4,680 acres.

8. Present Customer Mix

11. Clay Basin Storage

12. Clay Basin January Averages

13. Clay Basin Service Opportunities Firm Storage Service Capacity Release Interruptible Storage Service Release of Injection/Withdrawal rights In-place Transfers Park and Loan (PAL1)

14. Firm Service (Rate Schedule FSS): Demand: Monthly Deliverability Monthly Capacity Maximum $2.85338 $0.02378 Commodity: Injection Withdrawal $0.01049 $0.01781 Clay Basin Firm Storage Rates

15. Assume annual storage capacity is.939 Bcf = 938,967 Mcf = 1,000,000 Dth MRD = 1,000,000/120 days = 8,333 Dth/Day Effective One-Part Rate:$598,980/1,000,000 Dth = $0.5990/Dth Note: Does not include fuel 8,333 Dth x $2.85338 x 12 months 1,000,000 Dth x $0.02378 x 12 months 1,000,000 Dth x $0.01049 1,000,000 Dth x $0.01781 = = = = $285,338 $285,360 $10,490 $17,810 Total:$598,980 Deliverability Rate - Capacity Rate - Injection Rate - Withdrawal Rate - Total FSS MRD = 428,222 Dth Firm Storage Rate Example

16. Interruptible Service (Rate Schedule ISS): Usage Charge : Inventory Maximum $0.05927 (applied to the average monthly working gas balance) Customers will reimburse Questar Pipeline in kind for fuel use. Currently, two categories of fuel usage exist, utility fuel and compressor & dehydration fuel. Injection: $0.01049/Dth Withdrawal: $0.01781/Dth Clay Basin Interruptible Storage Rates

17. Questar Hub Services Questar offers two types of Park and Loan service levels, PAL1 and PAL2. Service Priority; FSS, PAL1, ISS, PAL2. Questars Representative for PAL services is Marty Anderson 801 324-2017

18. Clay Basin Testing Questar has made every effort to minimize the impact by working with other interstate pipelines Critical Notices have been posted to Questars web site Questar performed the last inventory verification test in 2002 Questar has FERC authority to perform inventory verification tests at Clay Basin by issuing a operational flow order. Please refer to Questars FERC gas tariff, Part 3-Clay Basin Storage, Section 10.9

19. Inventory Verification Test April 1 – 5, 2004 restrict operations to withdrawal only April 6, 2004 8:00 a.m. MST withdrawal test of up to 370,000 Dth will occur All storage customers are required to make a withdrawal and corresponding transportation nomination on either QPC or NWP. Level will be determined mid-March and FSS holder will be notified.

20. Inventory Verification Test Questar will issue an OFO to each storage holder indicating the level of withdrawal required on April 6, 2004. April 7, 2004 at 8:00 a.m. MST Clay Basin will be shut-in for a two-week period for inventory verification. Storage service not available during the two-week period. Normal operations will resume April 22, 2004 at 8:00 a.m. MST.

21. Example: A storage holder holds FSS storage capacity of 1,065,000 Dth. Its minimum nomination would be calculated as follows: April 6 Flow Requirement 1,065,000 Dth x 160,000 Dth = 3,122 Dth 54,581,250 Dth April 6 Flow Requirement 1,065,000 Dth x 370,000 Dth = 7,220 Dth 54,581,250 Dth Inventory Verification Test Cont.

22. Questars Future Storage Projects Questar Pipeline is currently exploring two storage projects to meet the needs of its customers Southwest Wyoming Salt Cavern project near Evanston, Wyoming (salt cavern) Kanda Hub Storage Project near Rock Springs, Wyoming (depleted gas field)

23. Questar Project Status Work is continuing on both storage projects, however the primary focus is on the depleted gas storage project with the potential to tie to multiple large diameter pipelines Assuming that gas prices decline and stabilize in the near future, an open season is anticipated in 2004 for the Kanda Hub Project

25. Why Salt? Caverns can be emptied and refilled quickly High injection and withdrawal rates make them well-suited to meet peaking requirements multiple times during the same demand period Salt is an excellent sealant Impervious to natural gas and seals itself (creep) The salt is strategically located

26. Project History Drilled and analyzed core hole test well in Pruess Formation 3,000 ft deep, 2,000 ft thick Conducted initial project feasibility studies Consultant: Sofregaz US Inc. Acquired necessary leases and rights Leases for caverns and disposal wells Options for water rights from City of Evanston

27. Project Feasibility Salt Water Brine disposal Location Proposed initial pipelines ties are Kern River and Questar Pipeline As market demand requires we will tie to the other major pipelines in the area

29. Capacity and Deliverability Potential for five caverns Sequential cavern development Storage capacity of 2.5 Bcf working gas and 1.1 Bcf cushion gas per cavern Deliverability of 250 MMcf/day per cavern Injection of 125 MMcf/day per cavern

30. Current Status Disposal test well to Nugget Formation Core and log Twin Creek and Nugget Formations Open-hole injectivity test of Nugget Disposal options: Reinjection, settling ponds and/or combination of these Engineering design Preliminary cavern design and brine disposal Pipeline routes and operating facilities (Questar)

31. Rates Projected rates at this time estimated between $4.50 and $4.75 Dth/year, plus fuel At various cycles per year, this number is: Range of Rates (Dth/month) Cycle $4.50$ 4.75 4 $1.125$ 1.188 6 $0.75 $.792 9 $0.50 $.528 12 $0.375 $.395

32. Rock Springs Storage Project Preliminary engineering underway to determine project capacity, cost and timing Projected size ranging from 15 Bcf to 20 Bcf working gas Anticipated interconnects with Questar Pipeline, Overthrust, CIG, WIC and Overland Trail Projected in service 2007 - 08

33. Summary Questar Pipeline is focused on providing transportation and storage service that will improve market access for Rocky Mountain gas supply. Implementing solutions to meet customer needs continues to be our goal in a challenging environment. We look forward to working with our energy partners to find those solutions.