Operations and Customer Service Presentation

1 QPC Operation and Customer Service Meeting 2015

WELCOME & INTRODUCTIONS

Ron Jorgensen

Vice-President, Operations & Gas Control

®


Agenda 8:30 a.m. Welcome and Introductions – Ron Jorgensen

8:45 a.m. Meet the Pipeline President – Micheal Dunn

9:10 a.m. Integrity Management 101 – Doug Brunt

9:30 a.m. Southern System Available Capacity – Jack Ahern

9:50 – 10:10 a.m. BREAK

10:10 a.m. Winter Outlook – Greg Paige

10:25 a.m. Marketing Update – Shelley Kendrick

10:40 a.m. Contracting Update – David Reeder

10:50 a.m. Nominations Update – Chad Campbell

11:00 a.m. “Chat with Chad”/ Wrap-up – Chad Campbell

11:15 a.m. ADJOURN ®


INTRODUCTIONS

®


MEET THE PIPELINE PRESIDENT

Micheal Dunn

Executive Vice-President, Questar Corporation

and President, Questar Pipeline Company

®


QPC INTEGRITY

MANAGEMENT ENSURING SAFETY AND RELIABILITY

Doug Brunt

Director Integrity Management

®


Elements of Integrity Management

Risk

Assessment

Pipeline

Inspections

Damage

Prevention

Integrity

Management


In-Line Inspection - Animation

https://www.youtube.com/watch?v=hk-nq8LMR6I


In-Line Inspection - Considerations

• Smart tool must fit through the line

• Gas flow must be maintained at 3-5 MPH

• Calibration points (Above Ground Markers) placed every

mile along the route during the run

• Questar’s Shortest run 13 miles, 3.5 hours

• Questar’s Longest run 196 miles, 40 hours


DOT Required

High Consequence Area

(HCA) Assessments

(49 CFR Part 192) 1,106.6 Miles, 41%

95% Complete

Other Business Critical

244.4 Miles, 9%

54% Complete

Voluntary INGAA Commitment

Moderate Consequence Area

(MCA) Assessments

(804.9 Miles, 30%

11% Complete

No DOT

Requirements

513.7 Miles, 19%

Integrity Assessment by Driver


2015 and 2016 Assessment Schedule

Company Line Number From To

Pipe

Diameter

(Inches)

Length

(Miles)

Next Scheduled

Assessment

QPC ML 022 Powder Wash Simon Stn 20 16.49 06/25/15

QPC ML 022 Simon Stn Nightingale Station 20 57.88 07/09/15

QPC ML 041 Boarding House Payson Gate 18 38.67 07/29/15

QPC JTL 113 Elberta Current Creek Plant 20 13.37 08/19/15

QPC ML 040 Petes Wash Fidlar Station 20 33.65 09/30/15

QST ML QST Red Mesa Cameron 16 149.00 09/24/15

QST ML QST 20" / 12" Junction Red Mesa 12 58.90 10/08/15

QPC ML 040 Blind Canyon Gate Price Station 20 41.90 05/19/16

QPC ML 104 Thistle Compressor Elberta (Kern River) 24 37.90 08/10/16

QPC ML 048 South Lake ML48/60 Junction 12 27.60 10/07/16

QPC ML 060 ML 48 - Woodruff Hyrum Gate 20 39.20 12/31/16


JTL113 ML104 to Current Creek

13.4 miles, 20”, (Potential AC Corrosion)

Aug 18, 2015

ML22 Powder Wash to Simon

16.5 miles, 20”

June 25, 2015

ML22 Simon to Nightingale

57.9 miles, 20”

July 9, 2015

ML40 Petes Wash to Fidlar

33.7 miles, 20”

September 30, 2015

ML41 Boardinghouse to Payson

38.7 miles, 18”

July 29, 2015

2015 Pipeline Inspections- QPC


QST – Red Mesa to Cameron

149 miles, 16”

September 24, 2015

QST – 20”/12” Junction to Red Mesa

58.9 miles, 12”

October 8, 2015

2015 Pipeline Inspections - QST


ML48 South Lake to ML48/60 Junction

27.6 miles, 12”

ML60 ML48 – Woodruff to Hyrum Gate

39.2 miles, 20”

ML40 Blind Canyon Gate to Price

41.9 miles, 20”

ML104 Thistle Compressor to Elberta (Kern River)

37.9 miles, 24”

2016 Pipeline Inspections- QPC


Launchers / Receivers


Required Modifications – Main Line Valves


Chemical Cleaning Tools

Brush Pig

Gauge Plate Pig Magnet Pig


Deformation Tool


Corrosion Tool – MFL (Magnetic Flux Leakage)


Bottom Dent – Construction Related


External Corrosion – Coating Damage


Damage Prevention

• Participate in state one-call programs

• Sponsor and participate in out-reach programs to

excavators and contractors for safe digging

practices

• 100% standby inspection by company personnel

for all excavation within proximity to our lines

• Parallel construction agreements with foreign

lines for standby and safe digging practice


Integrity Management Report Card

• Favorable Compliance Record

• No fines, penalties, compliance actions

• Replacement Program

• ML3 Replacement final year of a 5 year program to

replace 30 miles of legacy pipe.

• Future $5M to $10M / year in replacements


Ensuring Safety and Reliability - Keys to Success

• Know the pipeline system

• Understand the associated risks

• Apply appropriate strategies to minimize risk

• Have and follow good procedures

• Continually learn, be flexible, and adapt

• Communicate and coordinate with customers


QUESTIONS?

®


SOUTHERN SYSTEM

AVAILABLE CAPACITY Jack Ahern

Director of System and Reservoir Engineering

®


Southern System Available Capacity

• Questar Pipeline has unsold capacity available

Receipt

Location

Delivery

Location

Unsubscribed

Capacity

Effective Gas

Day

End Effective

Gas Day

West of

Fidlar

Payson /

Goshen 30,000 11/1/2015 10/31/2016

West of

Fidlar

Payson /

Goshen 18,000 11/1/2016 2/6/2017

West of

Fidlar

Payson /

Goshen 20,000 2/7/2017 10/31/2017

West of

Fidlar

Payson /

Goshen 2,000 11/1/2017 10/31/2019

Source: http://www.questarpipeline.com/html/2Frameqpc_capacity.html

http://www.questarpipeline.com/html/2Frameqpc_capacity.html

http://www.questarpipeline.com/html/2Frameqpc_capacity.html


Price Area to Goshen • Due to observed production declines in the Price area

affecting transport capacity, QPC seeks options to sustain

or expand transportation from this area

• Interested Customers should contact their Marketing representative

ML 80

ML 103

WHITE RIVER HUB

FIDLAR

GOSHEN

PRICE, UT

ML 104

Seeking Customer

interest in Price area

to Payson / Goshen


Southern System Expansion

ML 80

ML 103

WHITE RIVER HUB

FIDLAR

GOSHEN

ML 104

• Planned Southern System expansion

• Incremental 80 MDth/d from Fidlar to Payson / Goshen

• Capacity for 35 MDth/d from WRH to Fidlar

• (18 MDth/d unsold + 17 MDth/d incremental = 35 MDth/d)

• Incremental 20 MDth/d from Clay Basin to Fidlar

Incremental 80 MDth/d

Fidlar to Payson / Goshen

35 MDth/d

WRH to Fidlar

Incremental 20 MDth/d

Clay Basin to Fidlar


Potential Options - Southern Expansion Note: Some options may require additional expansion projects

ML 80

ML 103

WHITE RIVER HUB

FIDLAR

GOSHEN

ML 104

CLAY BASIN

Northern System

Receipts to Fidlar

Clay Basin

to Fidlar

White River Hub to

Fidlar, Clay Basin,

Overthrust, Roberson,

Ruby, Wasatch Front

KANDA / COLEMAN / NIGHTINGALE

ROBERSON


Implications for Capacity Holders

• Firm shippers transporting primary to primary will not

be impacted by the capacity changes.

• Firm shippers should try to nominate their capacity

from Primary to Primary (P2P).

• Shippers requesting amendments or flex nominations

on QPC’s southern system may want to consult the

QPC Constraint Point map on PipeViewer.

• Shippers without access to PipeViewer should consult their

Marketing representative


Summary • Existing capacity for sale

• Southern System to Payson / Goshen

• White River Hub to Fidlar

• Deliveries to Kern River (Roberson) or Ruby (Topaz)

• Deliveries to Wasatch Front

• Planning several potential expansions • Fidlar to Payson / Goshen

• Northern Receipt Points to the Wasatch Front

• White River Hub to the Payson/Goshen or Wasatch Front

• Deliveries to White River Hub and to Northwest Pipeline

• Overthrust to Wasatch Front

• Interested Customers should contact their Marketing representative


QUESTIONS?

®


WINTER OUTLOOK Greg Paige

General Manager, Gas Management

®


Clay Basin Injection Test: Key Dates

• Sept 18 OFO Letters issued to all FSS holders.

• Oct 3-5 Injection only for reservoir conditioning; No

Withdrawal noms accepted; Transfer noms OK.

• Oct 6 200 mmcf/d (207 Mdth/d) injection.

• Oct 7 250 mmcf/d (259 Mdth/d) injection.

• Oct 8–15 Reservoir shut-in. Only transfer noms accepted.

• Oct 16 Return to normal service. Injection and

withdrawal available.


Historical Retrospective

• 2014-2015 precipitation was less than the historical

average

• Last year was slightly warmer than the historical average

• QGC experienced record send out on December 30, 2014

• Scheduled Coalville point 2 days

• Scheduled Clay Basin net injection (Entire Basin) 13 days

• Scheduled Clay Basin net withdrawal (NPC side) 20 days

• Scheduled Clay Basin net injection (NPC side) 6 days

®


2015-2016 Winter Forecasts

• “There is an active southern jet stream with a super El-

Nino…will lead to plenty of moisture and lots of mountain

snow…expect below normal temperatures due to rain,

snow and cloud cover” • LiveWeatherBlogs.com paraphrased

• NOAA expects an “equal chance of high, average or low

precipitation and high, average or low temperatures in the

November to February time frame. They also expect a

strong El-Nino in late autumn which will slowly weaken

through the winter” • paraphrased


Weather Conclusions

• Based on current winter forecasts, it’s reasonable to

believe that this heating season will be similar to last year.

• Most nomination reductions occur during the transition

from warm to cold weather due to greater use of firm

capacity rights.


Leading Indicator: Weather Forecasts

• One of the best tools for customers is simply the local

weather forecast on the nightly news. Key information is

the mean temperature and expected wind speed and

direction.

• As the mean temperature drops to the mid-20’s and below along

the Wasatch Front, the likelihood of scheduling cuts increases

• Higher wind speeds mean increased wind chill effect

• Temperatures and winds in the producing areas of Wyoming and

central Utah indicate potential freeze offs

• While QPC can temporarily “carry” some supply loss, freeze offs are a

significant contributor to supply reductions

• Please contact your suppliers prior to a cold event to ensure they

are prepared and that supplies will be available


Leading Indicator: EBB Message

• When scheduling a constraint point that will have major

impact to the Wasatch Front, QPC will post an EBB

message similar to the following in advance of the

expected weather:

Due to unusually cold weather conditions forecasted along the Wasatch Front,

Questar Pipeline is advising customers that nominations through the WF/Coalville

scheduling point are expected to exceed the capacity of 850,000 Dth/d (see Constraint

Point Map). Customers are encouraged to line up nominations with primary receipt to

primary delivery or cuts may be experienced.

Shippers are also encouraged to contact their source production/supplier to ensure

that facilities are ready for the unusually cold weather. This pro-active effort may help

minimize cuts due to shortages.

Customers with questions should contact their Scheduling representative.


Leading and Current Day Indicator

Constraint Point Map


Scheduling Alternatives to the Wasatch Front

• When capacity to the Wasatch Front is constrained,

particularly at Coalville or on the Southern System,

options to re-path nominations to the Wasatch Front will

be very limited or non-existent.

• QPC capacity can be used to make deliveries to the

Wasatch Front through Kern River delivery points:

• Enter your nominations on Kern River with a receipt at Roberson

• Use your Questar capacity to re-path the delivery to a Kern River

MAP point for the next open cycle

• MAP 388 Roberson thru Kanda

• Questar will use its off-system capacity to Kern River interconnects

off Overthrust Pipeline

• There is an incremental charge for this service

• Delivery locations at Painter or Ham’s Fork if needed


QUESTIONS?

®


MARKETING UPDATE Shelley Wright Kendrick

General Manager, Marketing, Contracting & Business

Development

®


Agenda

• Production Forecast

• Pipeline Capacity

• Western Market Growth Potential

• Questar Pipeline Expansion Opportunities

• Overthrust Pipeline Expansion Opportunities

• Available Firm Transportation

• Transportation Discounts

• Customer Service Improvement


Production Shifting to the Northeast


Shift In Pricing Fundamentals


New Infrastructure Coming Online

Room for Rockies Exports

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

$/M

MB

tu

Bcf

/d

Exports Capacity Predicted Exports

Henry - History CIG - History Henry - Forward

CIG - Forward (Platts M2MS forward curve)

Bentek expects 6 Bcf/d of available Rockies Export Capacity

PIPELINES

PROJECT STATISTCS

Questar Pipeline Company Colorado Interstate Gas

Kern River Gas Transmission

Ruby Pipeline

Rockies Express Pipeline

Northwest Pipeline

Wyoming Interstate Company \

WHITE RIVER HUB

OPAL

MALIN

Oregon LNG

TransAlta Plant

Port of Tacoma Methanol Export

Jordan Cove

Port Westward Methanol Export

Kalama Methanol Export

Jim Bridger Plant

Naughton Plant

Magnida Fertilizer

Deseret Power Plant

IPP Plant

GOSHEN

PROJECT NAME IN-SERVICE Dth/d

Magnida Fertilizer 2017 75,000

Naughton Plant Conversion* 2018 89,000

Kalama (Methanol Export) 2018 320,000

Port Westward (Methanol Export) 2018 320,000

Port of Tacoma (Methanol Export) 2018 320,000

Jordan Cove 2019 1,200,000

IPP Combined Cycle Power Plant* 2020-2025 180,000

TransAlta Coal Plant Conversion 2020-2025 200,000

Oregon LNG 2020 1,300,000

Deseret Power* 2020 45,000

Jim Bridger Power Plant* 2023-2032 84,600

*Potential direct connect

BLANCO

50 QPC Operation and Customer Service Meeting 2015 50

Overthrust Pipeline

Questar Pipeline

WHITE RIVER HUB

GOSHEN

Project Name: Fidlar Compression Expansion

Total Capacity 80 MDth/d

Open Season 3rd Quarter 2015

FIDLAR

Additional 10,915 BHP

(Taurus 70)


Overthrust Pipeline: Expansion Options for large end users in the Pacific Northwest (Jan 1, 2018)

REX

WIC

Restage Compression

New Compression

Upgrade Measurement

Potential

Expansion

Existing

Long Term

Unsold

Incremental

Capacity

Created

Total

Capacity Receipts Project Description / End Market Served

Scenario #1 429,000

Dth/d 0 Dth/d

429,000

Dth/d

Wamsutter: 293 MDth/d

Rock Springs: 429 MDth/d

Meter Upgrades, can serve the Methanol

Plants in Washington

Scenario #2 429,000

Dth/d 282,000 Dth/d

711,000

Dth/d



Restage Compression & Measurement

Upgrades; can serve LNG projects &

Methanol projects

Scenario #3 429,000

Dth/d 592,000 Dth/d

1,021,000

Dth/d



Restage Compression, Meter Upgrades,

Additional Compression Units; can serve

LNG projects & Methanol Plants

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: 8/25/2015 8:01:01 AM

C

C TCGT

Fidlar

Natural

Buttes

C RMNG

Rifle

18,000

M.L

.80

15,350

S

Clay

Basin

Atmos

Energy

C

7,340

Dripping

Rock

State

Line

M Skull

Creek

C

Simon

18,530

M

C Nightingale

M.L

.58

M M

QOPC

M Roberson Creek

Whitney

Canyon QOPC

S

Leroy 31,620 Eakin 10,130

CIG

WIC

M.L.40 0

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

150,000 NPC

XO-16

224,290

C

13,240

CO2 Plant

C M

Goshen

M 0

25,290

48,380

16,160

Long Term

Unsold Firm Capacity

M

M Hams Fork

C

Thistle

C

M.L.104

J.L

. 4

7 /

13

8

Blind

Canyon

61,690

4,130

M M WRH

18,550

M

3,100

October 2015

7,500

48,380

10,350

0

M

Wamsutter 0

Altamont

Myton

C

Thistle 2

61,960

Roberson

Creek (KRGT)

M

Hams Fork (KRGT)

Hams Fork Meter Capacity

Whitney

Canyon

Eakin

QPC

Painter (KRGT)

WIC

XO-16

OPAL

(QPC)

JL 95

Naughton

(QPC)

Rock

Springs

Clear Creek

(CLSC)

REX

Wamsutter

Long Term

Unsold Firm Capacity

PIPELINE ABBREVIATIONS

KRGT - Kern River Gas Transmission Co.

QPC - Questar Pipeline Co.

WIC - Wyoming Interstate Co., Ltd.

REX - Rockies Express Pipeline

CLSC- Clear Creek Storage Company, L.L.C

WIC

LEGEND

Volume in Dth/d

Delivery Point Meter Station

Main Line Compressor Station

S

M

C

0

Storage Facilities

Connecting Pipelines

S

C C

Point Of

Rocks

C

(QPC)

50,000

50,000

206,460

127,490

S:\Engineering - QPC\SystemEngineering\Unsold_Long Term..... Updated: 8/25/2015 8:03:35 AM

100,000

252,840

294,300

Ruby

Pipeline

113,000

100,000

300,000

52,880

38,900

50,000

197,460

October 2015

7,300 M

M

M

M

M

M

M

M M

M

M


Transportation Discounts: Firm and IT • Questar Pipeline Company

• Firm Discounts: June – October 2015

• Deliveries to: Kanda/WIC, Kanda/CIG, QPC to REX

• $0.065/Dth/d

• Deliveries to: Roberson thru Kanda, Hams Fork

• $0.09/Dth/d

• Interruptible Discounts: September 2015

• Deliveries to: Goshen, Kanda/WIC, Kanda/CIG

• $0.07/Dth/d

• Deliveries to: QPC/REX, Roberson thru Kanda and Hams Fork

• $0.10/Dth/d

• Overthrust Pipeline Company

• Firm Discounts: May – October 2015

• Deliveries to: Ruby Topaz, Hams Fork, Roberson Creek, Ryckman Creek and QOP/KRGT

Painter

• $0.0375/Dth/d

• Interruptible Discounts: September 2015

• Deliveries to: Ruby Topaz, Hams Fork, Roberson Creek, Ryckman Creek and QOP/KRGT

Painter

• $0.045/Dth/d


Customer Service Improvement

We highly value our customers and the relationships established

Goal to improve customer service and ensure customer needs are met

QPC to participate in 2016 Mastio Multi-Client Study

Mastio to perform survey and data collection November 2015 through

mid-January 2016.

Develop action items and present at March 2016 customer meeting

Goal: Continuous improvement for top 10 ranking

We appreciate your participation in the survey and value your input

Please let us know what we can do to improve!

®


QUESTIONS?

®


CONTRACTING David Reeder

Supervisor, Contracting

®


Meet our Team

®


Services • Access agreements and new user setup

• Credit Background

• EDI setup

• User security

• Contract Administration

• New Capacity

• Amendments

• Capacity Release

• Contract Management

• Transportation/Storage

• Special Agreements

• Web Notices

• Customer Service


Upcoming Contract Enhancements

• New URL https://questline.questar.com

• Redirect from nac.questar.com

• Uses Citrix Net Scaler Receiver

• License change for Questar

• Quick initial configuration

• Each user must have their own I.D.

• Demo

• New Citrix Login

https://questline.questar.com/


Enhancements Cont’d

• Capacity Release

• Defaulted text for Recall/Reput


Enhancements Cont’d

• Enhanced approval process

Submitted and Pending Approval

Approved and Biddable

• Contract attached to Awarded Capacity notification

email


QUESTIONS?

®


SCHEDULING UPDATES Chad Campbell

Supervisor, Scheduling and Allocations

®


2015/2016 QuestLine Updates

• Updated QuestLine system - November 2015

• Implement NAESB 3.0 changes - April 1, 2016

• New QuestLine web system - Mid 2016


Cycle Nomination Confirmation Scheduled Quantity

Begin Flow

Timely 12:00 PM 3:30 PM 4:00 PM

8:00 AM

Evening 5:00 PM 7:30 PM 8:00 PM 8:00 AM

Intraday 1 9:00 AM 11:30 AM 12:00 PM 1:00 PM

Intraday 2 1:30 PM 4:00 PM 4:30 PM 5:00 PM

Intraday 3 6:00 PM 8:30 PM 9:00 PM 9:00 PM

New NAESB 3.0 Timeline

* All times listed above are MST


Customer Concerns


QPTM Web Based Design Objectives

• Enhance Customer Usability

• Customer Focused (Mastio Survey)

• Improved, contextual reporting

• Ability to quickly make minor business changes

• Improve navigation

• Pre-populate customers data

• Improve applications to support of mobile devices

• Wizards

• Technology Focused

• Develop application designed to stay relevant

• Take advantage of new development tools

• Mobile device technologies

• Eliminate Citrix

• Maintain response time

• Compliance

• Maintain NAESB compliance


QuestLine Web Changes 2016

• Dashboard screen

• Improved reporting functionality

• Web based technology

• Supported on both Android and IOS devices

• Browser Based (I.E. 11, Chrome, Firefox and Safari)

• Auto save

• New look and feel but same great functionality

• Training (WebEx, test database, and one on one)

®


Dashboard


New Reporting


QUESTIONS?

®


CHAT WITH CHAD

®

Hotline

Customer

Service Accuracy

Feedback


WRAP UP

®


®

THANK YOU

Documents

Operations and Customer Service Presentation