Dominion Energy Questar Pipeline, LLC...14 February 27, 2020 Dominion Energy Highlights • Safety...

Dominion Energy Questar Pipeline, LLC

2020 Customer Meeting

February 27, 20203

Shelley W. KendrickDirector, Marketing & Business DevelopmentDominion Energy Questar Pipeline

Welcome to Deer Valley! – Agenda

February 27, 20204

• Safety, Environmental, and Innovation Moment

• Introduction & Executive Overview

• Operations Update

• Marketing & Business Development Update

• Executive Q&A

• Market Outlook

• Wrap Up and Activities

Safety

February 27, 20205

How to stay healthy during cold and flu season

1. Get vaccinated

2. Stay home from work if you are sick

3. Cough and sneeze into your elbow, instead of your hands

4. Wash hands frequently – don’t touch your face

5. Disinfect hard surfaces and objects with an EPA-registered disinfectant

February 27, 20206

Environmental/Innovation

Smithfield RNG Project

1. Dominion Energy doubled their investment with

Smithfield Farms from $250 to 500 million through 2028

2. The expanded partnership will produce enough RNG to

power 70,000 homes and businesses, and reduce the

same amount of greenhouse gas emissions as taking

500,000 cars off the road or planting 40 million new trees

• Name

• Company

• What movie/series/book are you streaming?

Icebreaker

February 27, 20207

Please Introduce Yourself!

• Thank you!

• Ranked #4 of all pipelines surveyed

• Ranked #2 for regional pipelines

• Received excellent customer feedback

• Final study to be presented by Mastio later in March

• Results will be reviewed and a plan to act will be developed

• Specific improvements to be identified and implemented by year end

2019/20 Mastio Survey

February 27, 20208

• Increased Customer Activity • Firm Transportation sales – record volume• Throughput up – increased allocations at various delivery points

• Tariff Improvements/Modernization• Sale of Capacity – first-come, first-served – easier/quicker contracting• DEQP No Notice Transportation tariff modernized effective November 1, 2019 • Continuing review of tariffs for additional improvements

• Customer Service Improvements• Reduction in approval times for PAL deals• Notices – provide more detail

• Pipeline Expansion Opportunities • DEQP• DEOP

2019 Highlights

February 27, 20209

February 27, 202010

Cristie NellerVice President – Western Pipeline OperationsDominion Energy Questar Pipeline

February 27, 202011

Safety

Ethics

Excellence

Embrace Change

One Dominion Energy

Our Values

12

~ 7.5 million customers across 18 states

February 27, 202013

Updated Operating Segments

February 27, 202014

Dominion Energy Highlights

• Safety performance set new company record for 3rd straight year; 65% reduction since 2006

• Achieved weather-normalized operating earnings that met or exceeded the midpoint of our guidance for the 16th straight quarter

• Introduced a net zero emissions by 2050 target that accounts for carbon and methane emissions across both electric and gas operations

• Providing our customers with solutions to reduce their environmental footprints through electric school buses, enhanced grid for EV, marine LNG and renewable natural gas

Building a clean and sustainable energy future

FIVE PILLARSOF OUR VISION

Delivering clean, reliable, affordable energy

Protecting our environment

Serving customers and communities

Empowering our people

Creating shareholder value

1

2

3

4

5

February 27, 202017

Net zero emissions by 2050Carbon and methane across electric and gas operations

NET ZERO“We’re committed to reducing

greenhouse gases, that’s why

we’re making a bold new

commitment to achieve ‘net

zero’ emissions by 2050.”

Recent Accomplishments

February 27, 202018

Dominion Energy Questar Pipeline

Safety

• Record-setting safety year across all Dominion Energy business units

(2019 OSHA recordable rate of 0.57 for DE Gas Transmission)

• Over 600 days for DEQP Gas Transmission without an OSHA Recordable injury

• Completed 364 miles of ILI and 7 storage well workovers

Ethics

• Completed EPA Natural Gas Star filing in May 2019; Joined ONE Future Coalition

• Implemented Voluntary LDAR program with long term improvement targets

• ~100% of colleagues participated in 2019 Diversity & Inclusion training

Excellence

• Strong customer service – 2020 Mastio Quality Award (Regional Pipelines)

• Throughput increase of 11%+ from 2018 - 2019

• Record levels of contracted capacity for transportation & storage

Together we put Actions Speak Louder into motion.

Recent Accomplishments

February 27, 202019

Dominion Energy Questar Pipeline

Embrace

Change

• Implemented use of remote tracking for In-Line Inspection (ILI) tools

• Implemented portable re-compression technology to reduce blowdowns

• Successfully implemented a new DOT tracking system to improve compliance

documentation

Teamwork One Dominion Energy

• Continued strong community engagement including Foundation giving and

volunteer involvement

• Partnering with local schools and organizations to mentor and train the next

generation of energy providers

• Strategic vision focused on sustainability, consumer solutions, innovation

Building a clean and sustainable energy future.

The people of Dominion Energy are leading the country’s transition to clean energy. We are transforming everything we do to build a more sustainable future for our customers, the planet and our company.

2020 Priorities

February 27, 202020

Dominion Energy Questar Pipeline

Safety• Employee and contractor safety excellence - goal of zero accidents

• Robust set of pipeline and storage integrity management activities

Ethics • Excellent environmental stewardship and regulatory compliance

Excellence• Enhanced customer service – improvements based on feedback

• High operational reliability – no firm service interruptions

Embrace

Change• Continue implementation of Methane Reduction programs leading to Net Zero

TeamworkOne Dominion Energy

• Strengthen relationship and communication with customers & stakeholders

• Ideas for new or enhanced services

Letter from the Chairman

February 27, 202021

Cristie NellerVice President – Western Pipeline OperationsDominion Energy Questar Pipeline

February 27, 202022

Kraig BlackburnDirector Area Transmission OperationsDominion Energy Questar Pipeline

Jeannie M. YerkovichDirector Area Transmission Operations & Gas ControlDominion Energy Questar Pipeline

• 2020 Maintenance Schedule

• Commitment to Pipeline and Storage

Integrity

• Commitment to Safety and Reliability

Pipeline Maintenance

February 27, 202023

February 27, 202024

2020 Maintenance Schedule

Possible Shipper Impact

Month Category Preliminary Dates Location Project Possible Customer Impact Duration

March Compliance March 24-26Fidlar Compressor

StationAnnual Maintenance/DOT’s No impact to customers is expected (Depends on

nominations from White River Hub)3 days

April

Reservoir Test April 7-15 Clay Basin Annual Withdrawal TestApril 7, constant 275 MMcf/d withdraw rate

April 8, constant 325 MMcf/d withdraw rate

April 9-15, Reservoir shut-in

9 days

Compliance April 8

Simon

Compressor

Station

Annual Maintenance/DOT’sIncreased pressures in the East Fields, no impact to

nominations is expected1 day

May Compliance May 12-15

Thistle

Compressor

Station

Annual Maintenance/DOT’sNo impact to customers is expected (Depends on

downstream pipeline flexibility)3 days

July Compliance July 7-10

Oak Spring

Compressor

Station

Annual Maintenance/DOT’sGoshen Capacity reduced to 300 Mdth/d from 384.5

Mdth/d1 day

October Reservoir Test October 6-14 Clay Basin Annual Injection Test

Oct. 6, constant 210 MMcf/d inj rate

Oct. 7, constant 260 MMcf/d inj rate

Oct. 8-14, Reservoir shut-in 9 days

Pipeline Integrity Management

February 27, 202025

DEQP 2020 planned In Line Inspection – roughly 97 miles

SML70Clay Basin to NWP14.56 miles, 20”

Caliper/MFL

ML58, 101Clay Basin to NightingaleML58, 42.13 miles, 20”

ML101, 41.34 miles, 20”Caliper/MFL

Note: 2019 completed In Line Inspection – 364 miles

ML68Clough to Weaver RidgeML68, 78.25 miles, 14”

Caliper/MFL

• Storage Well Workovers - Baseline Assessments• 2018 – 8 Wells

• 2019 – 7 Wells

• 2020 – 4 to 6 Wells Planned

• 2025 – All Baseline Assessments Complete

(PHMSA required by 2025)

Storage Integrity Management

February 27, 202026

2018 Recipient Utah Board of Oil, Gas and Mining Environmental Excellence Award

• Phase I & II (2016 & 2017)

• Highest population and structural densities

Class III and High Consequence Areas (HCAs)

ML 68 Replacement Phase III

Pipeline Safety and Reliability

February 27, 202027

• 2019 Phase III Replacement (2019)

• Completes Class III & HCA in Rifle

• Proactive multi-phase replacement - Rifle, CO

2019 Accomplishments

• Safety success >600 days without an

OSHA recordable

• No service interruptions to primary

firm customers

• Record cold day October 30

• 86% methane emission savings

• Successfully pigged 364 miles of pipe

Pipeline Safety and Reliability

February 27, 202028

Questions?

February 27, 202029

30

Joseph HulseManager – Marketing & Business DevelopmentDominion Energy Questar Pipeline

• Current Conditions: DEQP & DEOP

• Growth Opportunities:

- Wamsutter West Update

- DEQP & DEOP Opportunities to Expand & Debottleneck

• Customer Tools & Process Improvements

• Available Unsold Firm Capacity

• Ongoing Opportunities

Agenda

February 27, 202031

LittleMountain

Altamont

MFidlar

OakSpring

Dragon Trail

Thistle

BlindCanyon

C

C

MM M

C

C

M

Dripping Rock

AtmosEnergy

Myton

MM

M

M

M

ClayBasin

S

S

S

M

M

M

M

M

C

C C

SouthernStar

Hyrum Gate

Sunset Gate

Porters Lane

Coalville

Chalk Creek

Whitney Canyon

Roberson

Leroy

M

Bluebell

M

MC

S

% Subscribed % LT

DEQP: 96% 90%

DEOP: 97% 95%

Storage: 100 % 100%

WRH: 93 % 93% *As of 12/31/19

Annual Throughput

2019 : 111%*Compared to 2016-2018 annual throughput

Constraints:DEOP:

• Wamsutter

• KRGT Delivery

• Painter Lateral

DEQP:

• Kanda

• Southern Star

• Fidlar

• Goshen

• ML 103

• Clay Basin

Current Conditions: DEQP & DEOP

Dominion Energy Questar Pipeline, LLC

LEGEND

Meter Station

Compressor Station

Storage FacilitiesS

M

C

LittleMountain

XO16

Altamont

WhiteRiver Hub

MFidlar

OakSpring

Dragon Trail

Thistle

BlindCanyon

C

C

MM M

C

C

M

Dripping Rock

AtmosEnergy

Myton

MM

M

M

M

S

ClayBasin

S

S

S

M

M

M

M

M

C

C C

Wamsutter

SouthernStar

Hyrum Gate

Sunset Gate

Porters Lane

Goshen

Payson Gate

Nephi City

Coalville

Chalk Creek

Whitney Canyon

Hams Fork

Roberson

Leroy

M

Bluebell

M

Dominion Energy Questar Pipeline

Dominion Energy Overthrust Pipeline

MC

143 days

71days

2019 Commonly Constrained Locations

45 days

41 days

29 days

WIC: 175 daysREX: 66 days

122 days

104 days

91 days

43 days

Proposed Pipeline

DE Questar PipelineDE Overthrust Pipeline

WHITE RIVER HUB• DE Questar Pipeline• Rockies Express• Northwest• TransColorado• WIC• CIG

GOSHEN• DE Questar Pipeline• Kern River

WAMSUTTER• DE Questar Pipeline• Rockies Express

• WIC• CIG

OPAL• DE Questar Pipeline• DE Overthrust• Kern River

• Ruby• CIG• Northwest

CLAY BASIN

Cryogenic Processing

Natural Gas Market HubNatural Gas Storage

Kern River Pipeline

DE Questar Pipeline

DE Overthrust Pipeline

Kern River Pipeline

Specifications Description

Natural Gas Storage

(BCF)

• 54 Bcf working gas• 66.21 Bcf cushion gas

Interconnect Capacity

(Dth/d)

• DE Questar Pipeline• Injection: 217,000• Withdrawal: 700,000

• Northwest Pipeline• Injection: 250,000 • Withdrawal: 320,000

* Numbers listed are meter sizing, and actual volumes depend on pipeline conditions

Location

• Daggett County, Utah• NE corner of Utah near Wyoming &

Colorado borders• 50 miles from Rock Springs, WY

Clay Basin StorageLargest Natural Gas Storage Facility in the Rocky Mountains

February 27, 202034

February 27, 202035

Clay Basin InventoryAs of February 25, 202- Working Gas Inventory is 15.37 MMDTH

0

10

20

30

40

50

60

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

Min/Max Range 19-20

MM dths

DEOP - Wamsutter West Expansion ProjectFully Subscribed

WHITNEY CANYON

WAMSUTTER

OPAL

DEOP

DEQP

Compression Facility

Piping Modificationsat Rocks Springs

Measurement Upgrades at Hams Fork

Piping Modificationsat WamsutterPAINTER

Piping Modificationsat Cabin 31

Summary: ❑ 120,000 Dth/d of Firm

Transportation

❑ Receipt: Wamsutter(WIC or REX), Rock Springs, Clay Basin

❑ Delivery: Hams Fork

Status: ❑ Design, Engineering,

Contracting & Permitting Phase

❑ Anticipated in-service of November 1, 2020

Incremental: 120,000 Dth/d

February 27, 202036

DEOP – Potential Expansion ProjectsPhase II & III to the West

WHITNEY CANYON

WAMSUTTER

OPAL

DEOP

DEQP

Compression Facility

PAINTER

Phase II: ❑ ~80,000 Dth/d

❑ Receipt: Kanda (DEQP or WIC)

❑ Delivery: KRGT Painter, DEQP Whitney Canyon

❑ Timing: TBD

Phase III: ❑ ~100,000 Dth/d

❑ Receipt: Wamsutter(WIC or REX), Kanda (DEQP or WIC)

❑ Delivery: KRGT Painter, DEQP Whitney Canyon, Opal Points

❑ Timing: TBD

Phase II: ~80,000 Dth/d

Phase III: ~100,000 Dth/d

February 27, 202037

DEQP – Potential Expansion ProjectAdditional Receipt Capacity from Southern Star (Skull Creek Receipt)

38

SOUTHERN STAR

CLAY BASIN

CIG

Incremental Long-Term Receipt Capacity from Southern Star

Available

+17,500 dth/d TBD

KANDACOLEMAN

OPAL

February 27, 2020

DEQP – Potential Expansion ProjectsJTL 138 Extension - Incremental Takeaway Capacity at Myton or Brundage

39

JL1

38

ML40

ML104

Dominion Energy Questar Pipeline

Proposed Extension of DEQP’s JL138

Existing Processing (Refrigeration) Facilities

Existing DEQP Facilities

Existing Processing (Cryogenic) Facilities

Processed Gas Flow

Unprocessed Gas Flow

JL4

7 /

JTL

78

Altamont

Brundage

Myton

Price

Bluebell

JTL78 / ML40 JunctionML40

ML104

Incremental Long-Term Takeaway Capacity from Myton

Available Project Description

11,500 dth/d at Myton or19,000 dth/d at Brundage

Now

4-mile extension of JL 138 and yard-piping+70,000 dth/d incremental from

either locationTBD

February 27, 2020

Customer Tools & Process Improvements

February 27, 202040

DEQP is dedicated to providing the highest quality of support & service to its customers

Creativity & Innovation:

• Historical Clay Basin Fuel Posting

• Customer Cheat Sheets (Summary of information for DEQP, DEOP, WRH)

• ICE Chat Blaster Group

• PAL Notices

• Tutorials

Reminder: Tariff Procedures

February 27, 202041

DEQP & DEOP

Highlights:• All posted capacity is first-come, first-served

• Unless an auction notice is posted

• Auction Procedures:• Parties can update bid until deadline• Compete round: Triggers for parties tied for the highest economic value, ½ hour for DEQP, Best bid for DEOP

• Ability to enter into prearranged deals• Short Term Amendments• Unsold Capacity Requests

• Defined date for Short Term Amendments• 4th to last business day of each month

• 90 Day Rule: Applies if contract term is less than one year in length

February 27, 202042

Ongoing Opportunities

Transportation, Storage, Gas Sales, etc:

• LTU / Re-Contracting Capacity – DEQP & DEOP

• Clay Basin – ISS, PAL1

• Stipulation Gas Sales• Procedures posted online

• Executed NAESB

• Creative Deal Structures

Dominion Energy Questar Pipeline, LLC

KANDA/COLEMAN SUMMARYNitchie Gulch to WIC, CIG & DEOPWest of Nightingale to WIC, CIG & DEOPEast of Nightingale to WIC, CIG & DEOP

25,29041,720

14,520

LEGEND

Volume in Dth/d (Front-haul)

Meter Station

Compressor Station

Storage FacilitiesS

M

C41,720

LittleMountain

XO16 ( )

34,570Altamont

21,280

WhiteRiver Hub

MFidlar

OakSpring

Dragon Trail

Thistle

BlindCanyon

C

C

MM M

C

C

M

Dripping Rock

19,110

AtmosEnergy

0

Myton

MM

66,300

M

M

M

S

ClayBasin

0

22,9900

150,000

700

2,63059,960

S

S

S

M

M

M

M

M

C

C C

Wamsutter

SouthernStar

Hyrum Gate

Sunset Gate

Porters Lane

Goshen

Payson Gate

Nephi City

Coalville

Chalk Creek

Whitney Canyon

Opal

Roberson

Leroy

M

Bluebell

M

Volume in Dth/d (Back-haul)00

Dominion Energy Questar Pipeline

Dominion Energy Overthrust Pipeline

00

MC

DEQP - Opportunities

Hams Fork

Dominion Energy Overthrust Pipeline, LLC

476,0000

0

100,000

287,000494,000

100,000

300,000 52,880

0

476,000C

CC

C

M

M

M

M

M

M

M

LEGEND

Volume in Dth/d (Front-haul)

Meter Station

Compressor Station

Storage FacilitiesS

M

C

00

Volume in Dth/d (Back-haul)00

Dominion Energy Overthrust Pipeline

Dominion Energy Questar Pipeline

S

M

S

REX

Point of Rocks

XO-16

Clay Basin

Eakin

MM

Clear CreekS

Ryckman CreekPainterWhitney Canyon

Naughton

Roberson

Ruby

DEQP

WIC

Rock Springs

M

Clear Creek

M

Opal

M

WIC

Wamsutter

DEOP - Opportunities

Summary

February 27, 202045

• DEQP & DEOP Capacity is ~100% subscribed

• Working to debottleneck DEQP & DEOP

– Wamsutter West, Skull Creek, etc.

• Customer opportunities include:

– Pipeline transportation capacity

– Storage capacity

– PAL1

– Stipulation Gas Sales

46

Joseph HulseManager – Marketing & Business DevelopmentDominion Energy Questar Pipeline

Questions?

February 27, 2020

47

Executive Panel / Q&A

February 27, 2020