SALT LAKE CITY, Oct. 21, 2002 — Questar Corp. announced an agreement to sell its interests in the TransColorado Pipeline to Kinder Morgan Inc. and affiliates for $105.5 million.
The sales agreement — which is effective Oct. 1, 2002 — is subject to review under the Hart-Rodino-Scott Antitrust Improvement Act of 1976. The actual sale is expected to occur before year-end.
Affiliates of Questar and Kinder Morgan were co-owners of the TransColorado Pipeline, a 300-mile natural gas pipeline that extends from northwestern Colorado to northern New Mexico. In 2001, Questar exercised a contractual right to put (sell) to a Kinder Morgan affiliate its 50% ownership interest in the TransColorado project. Following lengthy legal proceedings, a Colorado court in August 2002 issued a judgment upholding Questar’s right to exercise the put option.
D.N. Rose, president and CEO of Questar Pipeline, said, “This is a good outcome for us. It allows us to cover our recorded investment and put the matter behind us without further litigation.”
Proceeds from the sale will be used to retire Questar Pipeline debt.
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.
Visit Questar’s Internet site at: http://www.questar.com .
Source: Questar Corp.