FERC GIVES FINAL APPROVAL
TO QUESTAR'S SOUTHERN TRAILS PIPELINE

SALT LAKE CITY — The Federal Energy Regulatory Commission (FERC) has issued a final order granting a certificate of convenience and necessity to Questar Corp.'s (NYSE:STR) Southern Trails Pipeline. The FERC's July 26 ruling came after the agency became satisfied that the pipeline would not hurt the environment. In October 1999, FERC gave preliminary approval to the project based on non-environmental issues.

When completed, the $155 million project would ship natural gas to Southern California from natural gas-producing basins in the Four Corners region, where Arizona, Colorado, New Mexico and Utah share a common border. The 693-mile, 16-inch-diameter steel pipeline was built by a group of oil companies in 1957 to move crude oil to Southern California refineries. Questar purchased the pipeline in 1998, renamed it "Questar Southern Trails Pipeline," and formed a subsidiary to convert it to operate as a natural pipeline. The Southern Trails Pipeline will transport 80 to 90 million cubic feet of natural gas per day (MMcfd) across New Mexico and Arizona and 120 MMcfd in California.

"We're pleased to get the certificate," said D.N. Rose, president and chief executive officer of Questar's pipeline subsidiary. "It validates our project and will help in our marketing efforts. The order gives us two years to put the line into service. So, for now, we'll continue to working on rightofway issues, and continue evaluating opportunities to develop the market. I'm confident we can get that done, despite some outstanding issues before the California Public Utilities Commission."

Before pipeline conversion can begin, Southern Trails also must receive final environmental approvals. The final draft of the environmental impact statement is in its comment period until late August. The project must also secure state, county and city work permits, and sign agreements with interconnecting pipeline companies.

Questar is a $2.3 billion diversified natural gas company headquartered in Salt Lake City. Through 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.

# # #