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Welcome/Overview

Allan Bradley President and CEO March 2012

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2011 Highlights

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Overthrust loop expansion completed in February

ML-104 expansion to Fidlar completed in November

Clay Basin storage capacity expanded by 2.7 Bcf in October

ML-3 (Phase III) replacement project completed in October

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Building a Regional Market Center

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Regional Market Center

Low cost transportation

Customer

Focus

New tariff services

Incremental value-added

projects

Storage

Gathering and

processing

• Remain cost-competitive with regional pipelines

• Maintain strong customer focus

• Identify new tariff services • Focus on incremental projects that provide value-added services

• Maintain storage leadership position and develop attractive, new storage alternatives

• Pursue gathering and processing opportunities

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QPC Growth & Efficiency

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O&M/dth includes Storage and 50% of WRH without QPC Contract

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2006 2007 2008 2009 2010 2011

Contract Demand Dth/day O&M/dth

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2012 Goals

Uinta Basin transportation to processing project complete by August

ML-103 extension project complete by December

JL-47 loop project filed with FERC

Complete technical evaluation of Clay Basin 8 Bcf storage capacity expansion

® 5.005.506.006.507.007.508.008.509.009.50

10.0010.5011.0011.5012.0012.5013.0013.5014.0014.5015.0015.50

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

Bcf/d

Ruby & Bison Pipelines In-

Service

Forecasted Production

REX In-Service

Rockies Production vs. Pipeline

Capacity

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Increasing Focus on Pipeline Safety More PHMSA audits New regulations = higher integrity management costs

Integrating the Gas and Electric Generation Industries NERC’s report on gas and power industry interdependence (Dec. 2011) INGAA FERC filing – Pipelines can support new gas-fired generation plants

(Jan. 2012) Evolving Pipeline Risk Factors

Transportation devaluation due to supply reconfiguration Increased maintenance, safety and environmental costs New project risks

Improving Industry Communications President Obama’s State of the Union Address INGAA Midstream Jobs Study (Feb. 2012) Pipeline safety outreach programs

Issues for the Future

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QUESTIONS

Thank You!

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Operational Issues

Greg Paige Director, Gas Control and Scheduling

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Transmission Services

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2012 PROJECTED LINE WORK

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2012 Projected Line Work:

Questar Pipeline

OPAL

GOSHEN

WAMSUTTER

WHITE RIVER HUB

Overthrust Pipeline

Questar Pipeline

Other Pipelines

Clay Basin Withdrawal Test: •Feb 22 : OFO’s issued to FFS customers for required WD Volumes •Mar 30 – Apr 3: Field limited to physical withdrawal only; no injection nominations accepted •April 3: Reservoir Conditioning •April 4: Reservoir Testing •April 5-18 Reservoir Shut-in •April 19: Return to normal operation

Oak Spring Control System Upgrade •April 5 – 25 ML 104 Capacity limited to approximately 330 Mdth/d during this time.

JL47 / ML40 Tie-In •April 24 – 26 Receipt Points on JL46 and JL47 will be shut in to accommodate this work.

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2012 Projected Line Work:

Questar Pipeline & Overthrust Pipeline

OPAL

GOSHEN

WAMSUTTER

WHITE RIVER HUB

Overthrust Pipeline

Questar Pipeline

Other Pipelines

Overthrust Pipeline System wide maintenance: •September 11, 2012 •Impact to nominations TBD on September flow conditions •Coordinating with REX and KRGT to minimize impact to shippers

Oak Spring DOT’s & Water Wash •August 28 – 29 Reduced ML104 capacity •August 30 ML104 flow reduced to zero

Main Lines 68/103 Tie-In •July 24 – 25 Net east/west nominations in ML68 to zero

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OVERTHRUST PIPELINE

Transmission Services

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Capacity Scheduling

System operation, and scheduling changed dramatically on November 1, 2011 when the markets shifted to the west, changing the Overthrust direction of flow.

Currently scheduling delivery volumes at Hamm’s Fork and Roberson Creek using KRGT meter capacity limitations.

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Capacity Scheduling Continued

Currently scheduling receipt volumes at the REX interconnect at Wamsutter.

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QUESTIONS

Thank You!

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FERC Regulatory

Brad Burton General Manager, Regulatory Affairs

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Clay Basin

Liquid Revenue & Conditioning

Key Terms: Annual Cost of Service: Posted in Tariff §16.4(a). Liquid Revenue: net revenue from the sale of Clay

Basin liquids products Conditioning Reimbursement Factor: percentage

of injections & withdrawals retained by Questar to make up any expected shortfall in the liquid revenue required to recover the Annual Cost of Service.

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Clay Basin

Liquid Revenue & Conditioning

Key Terms: (cont.) Annual Reimbursement Adjustment: Quantity of

gas that is either transferred from Shipper accounts to Questar Pipeline or from Questar Pipeline to Shipper accounts at the end of July each year. The purpose of this transfer is to true-up revenue to the Annual Cost of Service.

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$0

$1

$2

$3

$4

$5

$6

$7

May 09 -Apr 10

May 10 - Apr 11

May 11 - Apr 12

Shortage

Conditioning ReimbursementLiquidRevenueCost ofService

Clay Basin Stipulation

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Company Injections Withdrawals INJ / WD % Dth Owed Company 1 15,000,000 15,000,000 26.78% 267,800 Company 2 5,000,000 5,000,000 8.93% 89,300 Company 3 1,000,000 1,000,000 1.79% 17,900 All Others 35,000,000 35,000,000 62.50% 625,000

Total 56,000,000 56,000,000 100.00% 1,000,000

Cost of Service Shortage $3,000,000 Inside FERC Northwest Pipeline July 1, 2012 $3.00 Estimated Dth from Shippers 1,000,000

Annual Reimbursement Amount

Sample Calculation

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WIC/Overthrust 2% CO2 Filing

Overthrust Filing Within 60 days of WIC settling with Shippers Changes Overthrust CO2 level to 2%

Impact on QPC

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QUESTIONS

Thank You!

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Pipeline Integrity

Ron Jorgensen General Manager - Engineering & Project Mgmt.

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Background

Mandated for HCAs in 2002 P/S Law Initial “Baseline Assessments” due 12/17/12

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20 or more people 20 or more structures

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Key Steps – Integrity Assessments

Capital Modifications Retrofit w/ launchers and receivers, remove restrictions, etc.

Line cleaning, gauging Mechanical vs. chemical cleaning

Gage plate tools

Smart-pig inspections Typically, Triple-Combination Tool (XYZ / Def. / MFL)

Bell-hole Inspections Monitored / Scheduled / Immediate Conditions

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Ensuring Safety & Reliability

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Smart-Pigging Well Underway

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Miles of HCA 31.6

Baseline Assess. % Complete (12/12) 96 %

Miles of system smart-pigged 867

% of system smart-pigged 33 %

QPC Already Assessed

Questar Pipeline

QPC Future Assessment

Overthrust Pipeline

JTL78 ML104 to Myton

ML2 and ML14 Coalville to Little Mountain

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QST System Map

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QST Cameron to Mohave

QST Mohave to Essex

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INGAA Integrity Mgmt. Initiative

Our goal is zero incidents – a perfect record of safety and reliability.

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“The members of INGAA, which represents the interstate gas transmission industry, already have undertaken comprehensive efforts to achieve greater pipeline safety. Through our IMCI initiative, INGAA members are embracing organizational safety culture; using coverage of population as the basis for extending integrity management principles beyond HCAs; applying risk management principles to assess and mitigate threats, thereby reducing the likelihood of an incident; developing and applying guidance for their pre-regulation pipelines in HCAs; and improving engagement with emergency responders and setting a response-time goal for isolation procedures.” - Don Santa, CEO of INGAA

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QUESTIONS

Thank You!

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Business Development

Lori Creer Director, Business Development

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Developing Business

2011 Re-cap Open Season Updates Projects Underway Un-Sold Capacity

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2011 Re-Cap

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Clay Basin Working Gas Expansion – October 2011

0

10

20

30

40

50

60

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

Min/Max Range AVG 01-11 '07-08 '08-09 '09-10 '10-11 '11-12

MMDth

2011-2012 2010-2011

Re-certified total reservoir capacity to 120.2 Bcf

Incremental 2.7 Bcf

Expanded interruptible Park and Loan service

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Phase IV Green River to Fidlar - 24.6 miles of 24” pipe

Completes 165 miles to loop ML 40/41 from Payson to Fidlar

Allows supply receipt to shift East towards Fidlar area processing plants

2011 Re-Cap

ML 104 Extension In Service November 2011

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MDth/d ML 104 Volume Growth

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012

ML 104 Capacity

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Open Season Updates - ML 68 Up-rate

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NWP

ML 40

ML 68

Northwest Pipeline

WIC – Kanda Lateral

CIG REX

WIC

Open Season January 2011 In-Service Subject to support Capacity

25 Mdth/d East to WRH/ REX 30 Mdth/d West to Fidlar/Kanda

Term/Rate 3 yr / $0.17652/dth

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Open Season Updates - Clay Basin

Expansion

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Open Season October 2011 – Non Binding Feasibility study underway Increase maximum reservoir pressure for additional 8 Bcf of firm storage

inventory capacity Increase firm injection capacity Potential direct connect with Overthrust and other Kanda area pipelines Potential in-service mid 2013

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Open Season Updates - Southern

System Expansion

Open Season December 2011 Additional high-pressure deliveries to Questar Gas

Company (QGC) at Payson New compression - increased operating pressure ML41 Increased measurement capacity at Payson Gate Stn. PAs have been executed Will require FERC 7(c) application Anticipated in-service Q1 2014

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Open Season Updates – JL47 Loop

Open Season January 2012 • Loop 9-miles of JL47 • 30,000 Dth/d added capacity • Anticipated in-service as early

as July 1st, 2013

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ML 104

ML 40

JL 4

7

FIDLAR

GAS PROCESSING

Current Status • Re-scoped project to accommodate

bids in excess of offered capacity • Negotiating PAs • Preliminary engineering and

environmental underway

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Projects Underway - Uinta Basin

Transport to Processing

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ML 40

ML 40

ML 104 Extension

JL 46

JL 47

Over 72,000 Dth/d subscribed Anticipated in-service Aug 1, 2012

Filed 7(c) Abbreviated Application on January 4, 2012 Requested expedited approval Received Environmental Categorical Exclusion Intervention and Protest may delay in-service date

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Projects Underway – ML103 Extension

Filed FERC 7(c) application November 2011 8.5 miles of 20-inch pipeline and related

facilities to replace 8.3 mile section of 14-inch diameter ML 68

To maintain pipeline integrity and reliability Incremental capacity 7,500 Dth/d No open season to support project Anticipated in-service November 2012

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KANDA/COLEMAN SUMMARY

NITCHIE GULCH to WIC, CIG & QOPC

WEST of NIGHTINGALE to WIC, CIG & QOPC

EAST of NIGHTINGALE to WIC, CIG & QOPC

PIPELINE ABBREVIATIONS LEGEND

CIG - Colorado Interstate Gas Co

KRGT - Kern River Gas Transmission Co.

QOPC - Questar Overthrust Pipeline Co.

QGC - Questar Gas Company

TCGT - TransColorado Gas Transmission

NPC - Northwest Pipeline Corp.

RMNG - Rocky Mountain Natural Gas

WIC - Wyoming Interstate Co., Ltd.

WGPC - Williams Gas Pipeline Central.

WRH- White River Hub, LLC.

Volume in Dth/d

Delivery Point Meter Station

Main Line Compressor Station

S

M

C

0

Storage Facilities

Connecting Pipelines S:\Engineering - QPC\SystemEngineering\Unsold_Long Term... Updated: 2/21/2012 7:48:14 AM

C

C TCGT

FIDLAR

NATURAL

BUTTES

C RMNG

RIFLE

23,370

M.L

.80

52,370

S

CLAY

BASIN

ATMOS

ENERGY

C

14,200

DRIPPING

ROCK

STATE

LINE

M SKULL

CREEK

C

SIMON

0

M

C NIGHTINGALE

M.L

.58

M M

QOPC

M ROBERSON CREEK

WHITNEY

CANYON QOPC

S

LEROY 27,350 EAKIN 16,540

CIG

WIC

M.L.40

48,130

OAK

SPRING

M

M

M

M

M

M

M

QGC INDIANOLA

NEPHI

CITY

PAYSON

GATE

S CHALK CREEK

S

COALVILLE

LITTLE

MOUNTAIN

PORTERS

LANE

SUNSET

GATE

HYRUM

GATE

QGC

QGC

QGC

QGC

QGC

IDAHO WYOMING

UTAH

COLORADO

NPC

SOUTH

LAKE

M C

KANDA/COLEMAN

PRICE 0 M

DRAGON TRAIL

36,030

NPC

XO-16

171,990

C

8,860

CO2 PLT

C M

GOSHEN

M 39,120

31,470

85,910

0

Long Term

Unsold Firm Capacity

M

M HAMMS FORK

C

THISTLE

C

M.L.104

J.L

.47

BLIND

CANYON

116,800

34,170

M M WRH

11,050

M

3,100

April 2012

7,500

78,160

0

0

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Salt Lake City Office Relocation

Effective March 19, 2012

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QUESTIONS

Thank You!

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