®® QUESTAR GAS Transportation Balancing Susan Davis, Director, Account & Community Relations February 28, 2014 We develop, transport and deliver clean energy

2 ® Questar’s Pipeline System

® 3 City Gate

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® 5 Firm Interruptible Sales GS, FS Residential/Commercial Commercial/Industrial IS Minimum Annual DTH 7000 Annual Contracts Market Based Transportation FT-1, TS (with firm demand) Minimum Annual Volumes 120,000 DTH (FT-1) TS Large Commercial/Industrial GS - Daily volumes not to exceed 1,250 DTH in any one day during the winter season. FS - Daily volumes not to exceed 2,500 DTH in any one day during the winter season. Qualifications: Annual dth over 2,100 dth, Load Factor 40% or higher

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®  Daily … typically +/- 5%. - Can be restricted to no over or under deliveries based on system operating constraints. - Violations of the daily restrictions are subject to penalties as provided in the tariff.

®  Monthly… must be within +/- 5%. - Imbalances may be traded through 15 days after month end closing. - Balances not traded within that time are subject to cash out or gas sale provisions provided in the tariff.

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®  Deliveries to the city gate are the responsibility of the transportation customer. - If gas is not delivered to the city gate, QGC is not responsible to supply gas to TS customers, even if customer has firm capacity on QGC. - Gas delivered to TS customers may be limited to contracted firm amount or daily nomination, whichever is less. - QGC release capacity is recallable. - Flexed firm capacity is firm, but it is a lower priority.

®  December 5, 2013 Supply Curtailment  Winter three interruptions - Two Northern - One Southern  January 1997 for 36 hours - First partial interruption  December 1990 for 9 days - First interruption since 1982

®  Winter interruption season: - November through March  But interruptions can happen any time during the year  Simultaneous interruption - Both sales (IS) and transportation (TS)  Geographic interruption possible  Partial interruption possible

®  Customers will be notified by QGC account management personnel – day or night  Notify QGC if interruption contacts change – educate all involved in the process  Two-hour maximum allowance to interrupt gas service

®  Penalty - Distribution non-gas component: $15/dth - Supplier non-gas component: $ Gas-cost component: Highest purchased gas during period of interruption = $4.75 on Dec. 5, Total = $25.46/dth  Meter shut-off may be used to maintain system integrity

®  Nominations/Scheduling Process - NAESB Cycles ▪(North American Energy Standard Board)  Events of December 5 th,

® - December 4, December 5, 2013 Timely Nominations (Cycle 1) Sent by 10:30 am to the TSP by 10:45 am Scheduled at 3:30 pm 8:00 am GD2 Gas Flow Evening Nominations (Cycle 2) Sent by 5:00 pm to the TSP by 5:15 pm Confirmations by 8:00 pm Scheduled by 9:00 pm 8:00 am GD2 Gas Flow Intraday 1 Nominations (Cycle 3) Sent by 9:00 am to the TSP by 9:15 am Confirmations by 1:00 pm Scheduled by 1:00 pm 4:00 pm GD2 Gas Flow Intraday 2 Nominations (Cycle 4) Sent by 4:00 pm to the TSP by 4:15 pm Confirmations by 7:00 pm Scheduled by 8:00 pm 8:00 pm GD2 Gas Flow 10:00 am Nominations in for Dec 5 th (GD5) - 154,953 Dth Evening Noms for (GD5) - 139,945 Dth Reductions for (GD5) - 2,348 Dth 9:45 am QGC notified by QEP of cuts at Blacks Fork and Red Wash plants - QGC started working with scheduling to determine the extent of cuts for transportation customers 6:00 am – QGC Gas Supply notices reduced flow from Blacks Fork (Pipeviewer) 7:30 am QGC Gas Supply purchases gas (ID1) to make up for assumed cuts at Blacks Fork 8:30 am and 10:00 am LeRoy and Chalk Creek aquifers to withdrawal (Coalville was already on withdrawal) 12:00 pm - A list of customers that required reductions was sent to Questar Gas account representatives 1:00 pm - Official cut notifications were sent out to transportation customer’s agents as part of the confirmation of the ID1 cycle 7:00 pm - Questar Gas notified customers that they could resume usage to match their increased supply that was scheduled to arrive at 8pm. Gas Day 1 Gas Day 2

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