2006Annual Report.pdf

QUEST.R
Questar Gas Company
180 East 100 South
P.O. Box 45360
Salt lake City, UT 84145-0360
Fax [phone]
Legal Department
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VIA FEDERAL EXPRESS CS?st-
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r:--:: ~ :;;:J
March 28, 2007
" "(:. .
(.f;C::r:?
Attn: Commission Secretary
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
\.D
Re: Questar Gas Company~ 2006 FERC Form 2: Annual Report
To Whom It May Concern::
Enclosed are three originals of its 2006 FERC Form 2: Annual Report of Major Natural Gas
Companies. Pages 310 through 313a, 332 , and 333 of this document include data regarding
customer-specific information in addition to sensitive information about Questar Gas and affiliate
company reserve volumes. Questar Gas requests that these pages be treated confidentially. Certain
information has been redacted on these pages in the bound document and the pages have been
stamped accordingly.
If disclosed to the general public, this information could subject Questar Gas to an unfair
competitive injury with respect to other producers as well as purchasers of natural gas. Ultimately,
this could have an adverse rate impact on Questar Gas' customers.
I have also enclosed pages 310 through 313a, 332, and 333 , copied on yellow paper and
stamped "CONFIDENTIAL " to be filed separately from the bound Annual Report, to avoid public
review. It is our understanding that Questar Gas will be notified if these pages are not classified as
confidential.
Very truly yours
CLB/pr
Enclosures
M~ t?m
J:lRegulated CompanieslQGCICorrespondence\FERC Form 2 Idaho 3-28-07.doc
Colleen Larkin Bell Senior Corporate Counsel Tel [phone] . Colleen.Bell(g)QuestaLcom
Check appropriatenox;
.(JJ. '
OrigiI?-al .sigIled form
r==J Conformed co~y
Form Appro.ved
OMB No.. 1902-0028
(Expires 7/31/96)
. ,. . -
PUBLIC
FERC FORM NO.
REPORT OF MA NATlTFJ~-L
GAS COMPANIES
TO THE
SERVI CE
OF IDAHO
COMM:I S S ION
ANNUAL
This reporl is mandalory under Ihe Natural Gas Act, Sections 10(a) and 16, and 18 CFR260.1. Failure 10 report may resull in crimi.allines, civil penalties and other sandionsas provided by law. The Federal Energy Regulatory Commission does not consider
this report to be of a conlidenlial nature.
Exact Legal Name of Respondent (Company)
QUESTAR GAS COMPANY..6l!!!!!~A!!!180 EAST FIRST SOUTH P.O. Bo.X 45360~JII;;~
~~
SALT LAKE CITY , UTAH 84145-0360
Year of 'Report
December 31 , 2006
FERC FORM NO.(ED 12-95)
INSTRUCTIONS FOR FILING THE
FERC FORM NO.
GENERAL INFORMATION
Purpose
II.
III.
This form Is designed to collect financial and operational Information from major Interstate natural gas companies subject
to the "jurisdiction of the Federal Energy Regulatory Commission. This report Is a nonconfidentlal public use form,
Who Mus! Submit
Each Major natural gas company which meets the filing requirements of 18 CFR 260,1 must submit this fonn.
NOTE: Major means having combined gas transported or stored for a fee exceeding 50 million Dth In each of the 3previous calendar years.
What and Where to Submit
(a)Submit the electronic medium In accordance with the procedures specified in 18 CFR 9 ~85.2011 and an
original and four (4) copies of this form to: .
Office of the Secretary
Fj3deral Energy Regulatory Commission
Washington, DC 20426
Retain one copy of this report for your files.
(b)Submit immedit;itely upon publication, four (4) copies of the latest annual report to stockholders and any annual
financial or statistical report regularly prepared and disbibuted to bondho.lders, security analysts, or Indusby
associations. (Do not Include monthly and quarterly reports. .Indlcate by che9king the appropriate box on page
3, LIst of Schedules, if the reports to stockholders will be submitted or if no annual report to stockholders is
prepared,) Mail these reports to:
Chief Accountant
Federal Energy Regulatory Commission
Washington, DC 20426
(c)For the CPA certification, submit with the original submission of this form; a Jetter or report (not applicable to
respondents classified as Class C or Class D prior to January 1, 1984) prepared in confurmitywlth current
standards of reporting which will:
(i)contain a paragraph attesting to the conformity, in all material rf;!spects, of the schedules listed belo.
with the Commission s applicable Uniform System of Accounts (Including applicable notes relating
thereto and the ChIef Acco~ntant's published accounting releases), and
FERC FORM NO.2 (12-96)Page
GENERAL INFORMATION
(II)be signed by Independent certified public accountants or Independent licensed public accountants
certified or licensed by a regulatory authority of a State or other political subdivision of the United
States (See 18 CFR 158.10-158.12 for specific qualifications.
Schedules
Reference
E.lliill2
Comparative Balance Sheet.
Statement of Income
statement of Retained Earnings
Statement of Cash Flows
Notes to Financial Statements
110-113
114-.116
118-119
120-121
122
Insert the letter or report Immediately following the cover sheet of the original and each copy of this form.
(d)Federal. State and Local Governments and other authorized users may obtain additional blank copies to meet
their requirement free of charge from:
Public Reference and Files Maintenance BranchWashington, DC 20426
(2~2) 208-2356
IV.When to Submit
Submit this repOrt form on or before April 30th of the year following the year covered by this report.
Where to Send Comments on Public Reporting Burden
The public reporting burden for this collection of infonnation is estimated to. average 2,475 hours per response, including
the time for reviewing Instructions, searching existing data sources, gathering ,and maintaining the data needed, and
completfngand reviewing the collection of Information. Send comments regarding this burden estimate or any aspect of
this collection of Information, including suggestio.ns for reducing this burden, to the Federal Energy Regulatory
Commission, Washington, DC 20426 (Attention: Michael Miller, E()"'12.4); and to the Office of Information and
Regulatory Affairs. Office of the Management and Budget, Washington, DC 20503 (Attention: Desk Officer for the
Federal Energy RegulatolY Commission).
You shall not be penalized for failure to respond to this collection of Information unless the collection of Infomiatlon
dlsplavs a valid OMB control number.
FERC FORM NO.2 (12-96)Page Ii
XIII.
GENERAL INSTRUCTIONS
Prepare this report In conformity with the Uniform Systems of Accounts (18 CFR 201)(U.S. of A). Interpret allaccounting words ahd phrases In accordance with the U.S. of A.
Enter In whole numbers (dollars or Dth) only, except where otherwise noted. (Enter cents for averages and figures per
unit where cents are Important) The truncating of cents Is allowed except on the four basic financial statements where
rounding to dollars Is required. The amounts shown on all supporting pages must agree with the amounts entered on
the statements that they support. When applying thresholds to determine significance for reporting purposes, use forbalance sheet accounts the balances at the end of the current reporting year, and use the current year amounts for
statement of Income accounts.
II.
III.Complete each question fully and accurately, even If it has been answered in a previous annual report Enter the wordNone" where It truly and completely states the fact.
For any page(s) that Is not applicable to the respondent, eitherIV.
(a)
(b)
Enter the words "Not Applicable" on the particular page(s), or
Omit the page(s) and enter "NA," "NONE," or "Not Appllcable 'n column (d) on the Ust of Schedules, pages 2
and 3.
Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report" at the top of eachpage Is applicable only to resubmissions (see VII. below).
VI.Indicate negative amounts (such as decreases) by enclosing the figures in parentheses ( ).
VII.When making revisions, resubmit the electronic medium and only those pages that have been changed from the original
submission. Submit the same number of copies as required for filing the loon. Include with the resubmlsslon the
Identification and Attestation. page 1. Mail dated resubmissions to:
Chief Accountant .
Federal Energy Regulatory Commission
Washington, DC 20426
VIII.Provide a supplemental statement further explainIng accounts or pages as necessary. Attach the supplemental
. .
statemenL(81/2 by 11 inch size) to the page being supplemented. Pro.vide the appropriate identification infonnatlon.
Including the title(s) of the page and the page number supplemented.
IX.Do not make references to reports of previous years or to other reports in lieu of required entries, except as specifically
authorized.
Wherever (schedule) pages refer to figures from a previous year, the figures reported must be based upon those shown
by the annual report of the previous year, or an appropriate explana~on given as to why the different figures were used.
XI.Report all gas volumes in MMBtu and Dth. -
XII.Respondents may submit computer printed schedules (reduced to 8 1/2 x 11) Instead of the schedules in the FERC
Form 2 if they are in substantially the same fonnat. '
Report footnotes on pages 551 and 552. Sort data on page 551 by page number. Sort data on page 552 by footnote
number. The page number component of the footnote reference is the first page of a schedule whether it is a single
page schedule or a multi-page schedule, Even if a footnote appears on a later page of a multi-page schedule thefootnote will only reference the first page of the schedule, The first page of a multi-page schedule now becomes a
proxy for the entire schedule. For example, Gas Plant in Service ranges across pages 204 through 209. A footnote on
oC!ae 207 would contain a paae reference of 204.
FERC FORM NO.2 (12-96)Page III
DEFINITIONS
tu p r cu The total heating value, expressed In Btu, produced by the combustion. at constant pressure, of the
amount of the gas which would occupy a volume of 1 cubic foot at a temperature of 600F If saturated with water vapor
and under a pressure equivalent to that of 30 Inches of mercury at 320F. and under standard gravitational force
(980.665 em. per sec. ) with air of the same temperature an~ pressure as the gas, when the products of combustion
are cooled tQ the Initial temperature of gas and air when the water formed by combustion Is condensed fo the liquid
state (called gross heating value or total heating value).
II.issIon Aut zallorr-The authorization of the Federal Energy Regulatory Commission, or any other Commission.
Name the Commission whose authorization was obtained and give date of the authorization.
III.Dekat rm-A unit of heating value equivalent to 10 thenns or 1,000 000 Btu.
IV.Res nt-The person, corporation, licensee, agency, authority, or other legal entity or ins~mentality on whose
behalf the recort Is made. .
EXCERPTS FROM THE LAW
(N~tural Gas Act. 15 U.C. 717-711w)
$ec.10(a). Every natural-gas company shall file with the Commission such annual and other periodic or special reports as
the Commission, may by rules and. regulations or order prescribe as necessary or appropriate to assist the Commission in the
proper administration of this act. The Commission may prescribe the manner and forin In which such reports shall be made and
require from such natural..gas companies specific answers to all questions upon which the Commission may need infonnation.
The Commission may require that such reports shall include, among other things, full infonnation as to assets and liabilities,
capitalization, Investment and reduction thereof, gross receipts, Interest due and paid, depreciation, amortization, and other
reserves, costs offaclRties, cost of maintenance and operation of facilities for the production, transportation, deliveJy,use, or
sale of natural gas, cost of renewal.and replacement of such facilities, transportation, delivery, use, and sale of natural gas...
Sec. 16. The Qommlsslon shall have power to perform any and all a~, and to prescribe. issue. make, amend, and rescind
such orders, rules, .and regulations as it may find necessaJy or appropriate to cany out the provisions of this ael Among other
things, suc/i rules and regulations may define accountIng. technical, and trade terms used In this act; and may prescribe the .form
or forms of all statements declarations, applications, and reports to be filed with the Commission, the Infonnallon which they
shall contain and time WIthin which they shall be filed...
GENERAL PENALTIES
Sec.21 (b). Any person who willfully and knowingly violates any rule, regulation, restriction, condition, or order made or
Imposed by the Commission under authority of this act, shall. in addition to any other penalties provided by law, be punished
ucon conviction thereof by a fine of not exceedln" $500 for eaCh and everv day dunna which such offense occurs.
FERC FORM NO.2 (12-96)Page iv
IDENTIFICA nON
01 Exact Legal Name of Respondent 02 Year of Report
Questar Gas Company Dec. 31 2006
03 Previous Name and Date of Change (If name changed during year)
04 Address of Principal Office at End of Year (Street, City, State, Zip Code)
180 East First South, Salt Lake City, Utah 84111
05 Name of Contact Person 06 Title of Contact Person
Jeff Callor Financial Reports Supervisor
07 Address of Contact Person (Street, City, State, Zip Code)
180 East First South, Salt Lake City, Utah 84111
08 Telephone of Contact Person 09 This Report Is 10 Date of Report
Including Area Code (1) !XI An Original (Mo, Da, Yr)
(80 I) 324-5249 (2) D A Resubmission March 2007
ATTEST A nON
The undersigned officer certifies that he/she has examined the accompanying report; that to the best of his/her knowledge, infonnation, and belief,
all statements of fact contained in the accompanying report are true and the accompanying report is a correct statement of the business and affairs
ofthe above named respondent in respect to each and every matter set forth therein during the period from and including January I to and including
December 31 of the year of the report,
01 Name 02 Title
David M. Curtis Vice President and Controller
03 Signature
If!
04 Date Signed (Mo, Day, Yr)
March 29, 2007
Title 18, U,c.~ 00 I, makes it a crime for ant,~rson knowingly and willingly to make to any Agency or Department of the United States any false
fictitious or fraudulent statements as to any matter within its jurisdiction,
FERC FORM NO.
ANNUAL REPORT OF MAJOR NATURAL GAS COMPANIES
FERC FORM NO.2 (12-96)Page I
Name of Respondent This
IiYrt
Is:Date of Report Year of Report(1) An Original (Mo, Da, Yr)
Dee 31 2006Questa r Gas Campa ny (2) FiA Resubmission .
Ust of Schedules (Natural Gas Company)
Enter In column (d) the terms "none,
" "
not applicable," or "NA" as appropriate, where n6 Information or amounts have been reported
for certain pages. Omit pages where the responses are "none,
" "
not applicable,. or "NA."
TIDe of Schedule Reference Dale Revised RemarksUnePage No.
(a)(h)(e)(d)
GENEAALCORPOAATE INFORMATION AND FINANCIAL STATEMENTS
Generallnfonnatlon 101
Control Over Respondent 102
Corporations Controlled by Respondent 103
Security Holderu and Voting Powers 107
Important Changes During the Year 108
ConiparaUve Balance Sheet 110-113
Statement of Income for Ilia Year 114-116
Stat&ment of Accumulated Comprehensive Income and Hedging AcUvities .117
StatementofRetaln9d Eamlngs lor the Year 118-119
Statements of Cash FlQws 120-121
Noles to financial Statements 122
BALANCE SHEET SUPPORTING SCHEDULES (Assets and Other Debits)
Summary of Ublily Plant and Accumulated Provisions for Depreciation, AmortizaUon, and Depletion 200-201
Gas Plant In Service 204-209. 14'Gas Property.and Capacity Leased from Others 212
Gas Property and Capacity Leased "10 Oll1ers 213
Gas Plant Hekl for Future Use 214
Construction Work In P~ress.Gas 216
General Desctfptlon of Conslructlon Overhead Procedure 218
Accumulated Provision for DaprOOlaUOII or Gas Utility Plant 219
Gas Stored 220
Invastments 222-223
InvesIments In Subskfl1l1Y Companies 224-225
Prepayments 230
Extraordlnaty Property Losses 230
Unrecovered Plant and ReguialOly Study Cosls 230
Other Regulatoty Assets 232
Miscellaneous Deferred Debits 233
Accumulated Deferreil Income Taxes 234-235
LANCE SHEET SUPPORTING SCHEDULES (lIablllUes and Olher Credits)
Capital Slock 250-251
Capital Slock Subscnbe~, CapRaI Slock liability for Conversion, Premium on Capllal Slock, and
Installments Received on Capital Stock 252
OIhef Pald.1n Capllal 253
Discount on Capital Stock 254
Capital Stock Expense 254
SeclJ~ties Issued or Assumed andSecuriUes Refunded or Retired Du~ng the Year 255
Long-Tenn Debl .256-257
Unamortized Debt Expense. Premium, and Discount on Long-Tel1T1 Debt 258-259
Unamortized loss and Gain on Reacquired Debt 260
FERC FORM NO.? /1?_Q~n
Name of Respondent This (i)/ Is:Date of Rep.ort Year of Report
Questar Gas Company (1) An Original (Mo. Da, Yr)
Dee 31, 2006(2) DA ~esubmlsslon
LIst of Schedules (Natural Gas Company) (continued)
Enter In column (d) the terms "none
" "
not applicable," or "NA" as appropriate, where no Information or amounts have been reported
for certain pages. Omit pages where the responses are "none
" "
not applicable," or uNA.
Tille of Schedule Reference Dale Revised RemarksLinePage No.
No,(a)(b)(e)(d)
ReconcillaUon 01 Reported Nepncome with Taxable Income for Federal Income Taxes 261
Taxes ACCfUed, Prepaid, and Chafged During Year 262-263
Miscellaneous Curren! and Accrued Uablfilles 268
Other Deferred Gredil$269
Accumulated Defened Income Taxas--Other Pfoperty 274-275
Accumulated Defened Inwme Taxes-Other 276-277
Other RegulaloryUabDltJes 278
INCOME ACCOUNT -SUPPORTING SCHEDULES
Gas Operating Revenues 300-301
Revenues from Transportation 01 Gas of Others Through Gathering Facl1it1es 302-303'47 Revenues from Transportation of Gas or Others Through Transmission Facilities 304-305
Revenues from Storage Gas of Others 306-307
Other GaS Revenues 308
Gas Operation and MaIntenance Expenses 317-325
Exchange and Imbalance Transactions 328
Gas Used In UUIity Operations 331
Transmission and Compresslon.of Gas by Others 332
54-OIIier'Gas Supply Expenses 334
MIscellaneous General Expeoses--Gas 335
DepJvcla1ion, Depletfon, and Amortization of Gas Plan!336-336
Paltk:ulars Concemlng Certain 'ncolM Deduction and Interest Charges Accounts 340
COMMON SECTION
RegulatOly CommIssion Expenses 350-351
59'DlstribuUon 01 Salaries and Wages 354-355
Charges for Outside Professional and Other Consultative SelVlces 357
GAS PlANT STATISTICAL DATA
Compressor Stations 506-50962,Gas Storage Projects 512-513
TransmIssion Unes 514
64'Transmission System Peak Deliveries 518
Auxlnary Peaking Facilities 519
Gas Aooount.N'atural Gas 520
System Map 522
Foolnote Reference 551
foolnote Text 562
. 70 Stookholde(s Reports (check appropriate box)
Four copies will be submitted
0 No annual report to stockholders is prepared
FERC FORM NO.2 (12-96\P"no ~
BLANK PAGE
(Next page is 101 J
Name of Respondent This Report Is:
of1l An Original
QUESTAR GAS COMPANY (2IJ A Resubmission
GENERAL INFORMA nON
1. Provide name and title of officer having custody of the general corporate books of account and
address of where the general corporate books are kept, and address of office where any other corporate
books of account are kept, if different nom that where the general corporate books are kept.
David M. Curtis, Vice Pres & Controller
180 East First South St.
O. Box 45360
Salt Lake City, Utah
84145-0360
2. Provide the name of the State under the laws which respondent is incorporated, and date of
incorporation. If incorporated under a special law, give reference to such law. If not incorporated
state that fact and give the type of organization and the date organized.
State of Utah - May 7, 1935
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
3. If at any time durmg the year the property of respondent was held by a receIver or trustee, give (a)
name of receiver or trustee, (b) date such receiver or trustee took possession, (c) the authority by which
the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased.
4. State the classes of utility and other services furnished by respondent during the year in each State in
which the respondent operated.
Colorado - Producing Properties, Natural Gas, Distribution
Montana - Producing Properties
New Mexico - Producing Properties
Utah - Natural Gas, Distribution Utility and Producing Properties
Wyoming - Natural Gas, Distribution Utility and Producing Properties
Idaho - Natural Gas, Distribution Utility
5. Have you engaged as the principal accountant to audit your fmancial statements an accountant who is
not the principal accountant for your previous year s certified fmancial statements?
00 Yes...Enter the date when such independent accountant was initially engaged:
(2)m No
FERC FORM NO.2 (12-96)Page 101
Name of Respondent
QUESTAR GAS COMPANY
This Report Is:
(1) !XI An Original
(2) OA Resubmission
CONTROL OVER RESPONDENT
1. If any corporation, business trust, or similar or- name oftrustee(s), name of beneficiary or beneficiaries
ganization or combination of such organizations jointly for whom trust was maintained, and purpose of the trust.
held control over the respondent at end of year, state 2. If the above required information is available from
name of controlling corporation or organization, manner the SEC 10-K Report Form filing, a specific reference to
in which control was held, and extent of control. If con- the report form (i.e. year and company title) may be
trol was in a holding company organization, show the chain listed provided the fiscal years for both the 10-K report
of ownership or control to the main parent company or and this report are compatible.
organization. If control was held by a trustee(s), state
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
Questar Gas is a wholly owned subsidiary of Questar.
Detailed information is disclosed in the 2006 Form 1 O-k reports filed by Questar Gas and Questar
Corporation.
FERC FORM NO.2 (12-96)Page 102
" .
Name of Respondent This ~rt Is:Date of Report Year of Report
Questar Gas Company (1) An Original (Mo, Da, Yr)
Dee 31 2006(2) nA Resubmlssion
Corporations Controlled by Respondent
1. Report below the names of all corporations, business trusts , and similar organizations, controlled directly or ii-idlreCtlyby
respondent at any time during the year. If control ceased prior to end of year, give partIculars (details) In a footnote.
2. If control was by other meflns than a direct holding of-voting rights, state In a footnote the manner in which control was held,
naming any Intermediaries involved,
3. If control was held jointly with one or more other Interests, state the fact In a footnote and name the o.ther Interests.4. In column (b) designate type of control of the respondent as no" fo.r direct, an "I" for Indirect, or a "J" for joint control.
DEFINITIONS
1. ,See tl)e Uniform System of Accounts for a definition of control.
2. Direct control Is that which Is exercised without Interposition of an Intermediary.
3. Indirect control is that which Is exercised by the Interposition of an Intermediary that exercises direct control.
4. Joint control Is that In which neither Interest can effectively control or direct action withoutthe consent of the other, as where thevoting control Is equally divided between two holders, or each party holds a veto power over the other, Joint control may exist by mutual
agreement or understanding between two or more parties who together have control within the meaning of the definition of control In
the Uniform System of Accounts, regardless of the relative voting rights of each party.
Une Name of Company Controlled Type of Control KInd of Business Percent Voting FootnoteNo,Stock Owned Reference(a)(b)(c)(d)(e)
Paae not Aooli cabl
"10
FERC FORM NO.2 (12-96)Page 103
BLANK PAGE
(Next page is 107)
Name of Respondent
QUEST AR GAS COMPANY
This Report Is:
(1)():: An Original
(2)0 A Resubmission
SECURITY HOLDERS AND VOTING POWERS
I, Give the names and addresses of the 10 security
holders of the respondent who, at the date of the latest
closing of the stock book or compilation of list of stock-
holders of the respondent, prior to the end of the year,
had the highest voting powers in the respondent, and state
the number of votes that each could
cast on that date if a meeting were held. If any
such holder held in trust, give in a footnote the known
particulars of the trust (whether voting trust, etc,
duration of trust, alld principal holders of beneficiary
interests in the trust. If the company did not close the stock book
or did not compile a list of stockholders within one year
prior to the end of the year, or if since it compiled the
previous I ist of stockholders, some other class
of security has become vested with voting rights, then
show such 10 security holders as of the close of the year.
Arrange the names of the security hold~rs in the order of
voting power, commencing with the highest. Show in column
(a) the titles of officers and directors included in such
list of 10 security holders,
2. If any security other than stock carries voting rights
explain in a supplemental statement
I. Give date ofthe latest closing of
the stock book prior to end of year, and
ill a footnote, state the purpose of
such closing:
November 17 2006
Line
No,
Name (Title) and Address of
Security Holder
(a)
4 TOTAL votes of all voting securities
5 TOTAL number of security holders
6 TOTAL votes of security holders
listed below
7 Questar Corporation
J 3
FERC FORM NO.2 (12-96)
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
how such security became vested with voting rights and
give other important details concerning the
voting rights of such security, State whether voting
rights are actual or contingent; if contingent, describe
the contingency.
3, If any class or issue of security has any special
priveleges in the election of directors, trustees or mana-
gers, or in the detennination of corporate action by any
method, explain briefly in a footnote,
4. Furnish details conceming any options
warrants, or rights outstanding at the end of the year for
others to purchase securities of the respondent or any
securities or other assets owned by the respondent, inclu-
ding prices, expiration dates, and other material infonna-
tion relating to exercise of the options, warrants, or
rights, Specify the amount of such securities or assets
any officer, director, associated company,
or any of the ten largest security holders is entitled to purchase.
This instruction is inapplicable to convertible securities
or to any securities substantially all of which are out-
standing in the hands of the general public where the op-
tions, warrants, or rights were issued on a prorata basis,
2. State the total number of votes cast at the
latest general meeting prior to the end of year
for election of directors of the respondent and
number of such votes cast by proxyTotal: 9 189 626
By proxy:
Number of votes as of (date):
Total
Votes
(b)
189 626
One
189 626
189,626
Page 107
VOTING SECURITIES
Common
Stock
Preferred
Stock
(d)(c)
189 626
One
189 626
189 626
3, Give the date
and place of such
meeting:
May 16, 2006
Tulsa, Oklahoma
Other
(e)
Name of Respondent
QUE STAR GAS COMPANY
This Report Is:
(1) An Original
(2) 0 A Resubmission
IMPORTANT CHANGES DURING THE YEAR
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Give particulars (details) concerning the matters indi-
cated below, Make the statements explicit and precise, and
number them in accordance with the inquiries, Each inquiry
should be answered, Enter "none" or "not applicable" where
applicable, If infonnation which answers an inquiry is
given elsewhere in the report, make a reference to the sche-
dule in which it appears,
I, Changes in and important additions to franchise rights:
purchase contract or otherwise, giving location and
approximate total gas volumes available, period of con-
tracts, and other parties to any such arrangements etc.
6, Obligations incurred or assumed by respondent as
guarantor for the perfonnance by another of any agree-
ment or obligation, including ordinary commercial paper
maturing on demand or not later than one year after date
of issue: State on behalf of whom the obligation was
Describe the actual consideration given therefor and state
from whom the franchise rights were acquired, If acquired
without the payment of consideration, state that fact.
assumed and amount of the obligation, Give reference to
Commission authorization if any was required,
7, Changes in articles of incorporation or amendments to
2, Acquisition of ownership in other companies by reor-
ganization, merger, or consolidation with other companies:
charter: Explain the nature and purpose of such changes
or amendments,
Give names of companies involved, particulars concerning the
transactions, name of the Commission authorizing the trans-
action, and reference to Commission authorization,
S, State the estimated annual effect and nature of
any important wage scale changes during the year.
3. Purchase or sale of an operating unit or system: Give
a brief description of the property, and of the transactions
relating thereto, and reference to Commission authorization
9, State briefly the status of any materially impor-
tant legal proceedings pending at the end of the year
and the results of any such proceedings culminated
during the year.
10. Describe briefly any materially important trans-if any was required, Give datejoumal entries called for
by the Uniform System of Accounts were submitted to the Com,actions of the respondent not disclosed elsewhere in
this report in which an officer, director, securitymIssion.
4, Important leaseholds (other than leaseholds for natural
gas lands) that have been acquired or given, assigned or sur,
rendered: Give effective dates, lengths oftenns, names of
parties, rents, and other conditions, State name of Commis-
holder reported on page 106, voting trustee, associated
company or known associate of any of these persons was a
party or in which any such person had a material inter-
est.
sion authorizing lease and give reference to such authoriza-
tion,
II, Estimated increase or decrease in annual revenues
5, Important extension or reduction of transmission or
distribution system: State territory added or relinquished
and date operations began or ceased and give reference to
Commission authorization, if any was required, State also
the approximate number of customers added or lost and ap-
due to important rate changes: State effective date and
approximate amount of increase or decrease.for each
revenue classification, State the number of customers
affected.
12, If the important changes during the year relating
proximate annual revenues of each class of service. Each na-
tural gas company must also state major new continuing sour-
to the respondent company appearing in the annual report
to stockholders are applicable in every respect and fur-
nish the data required by instructions I to II above
such notes may be attached to this page,ces of gas made available to it from purchases, development
I. See Page 1O8a
2, None
3, None
4, None
5. None
6, None
7, None
S, None
9, See Page 1O8b, 10Sc
10, None
II. See Pages 108d, lOSe, 10Sf, 108g
12, None
FERC FORM NO.2 (12-96)Page 108
Name of Respondent
QUESTARGAS COMPANY
This Report Is: Date of Report
(1) IX) An Original (Mo, Da, Yr)
(2) 0 A Resubmission
IMPORT ANT CHANGES DURING THE YEAR
1, CHANGES AND ADDITIONS TO FRANCHISE RIGHTS
Cottonwood Heights
Franchise rights were obtained by Questar Gas Company in the calendar year of 2006 from the following:
term length of 15 years (initial) with 3-year renewal periods
FERC FORM NO.2 (12-96)Page 108 a
Year of Report
Dec, 31 , 2006
9. IMPORTANT LEGAL PROCEEDINGS
Rate Regulation and Other Matters
Regulation
As a public utility, Questar Gas is subject to the jurisdiction of the PSCU and PSCW. Natural gas
sales and transportation services are provided under rate schedules approved by the two regulatory
commissions. Questar Gas is authorized to earn a return on equity of 11.2% in Utah and 11.83% in
Wyoming, Both the PSCU and PSCW pennit Questar Gas to recover gas costs through a balancing-
account procedure and to reflect natural gas-price changes on a periodic, generally semi-annual basis.
Questar Gas has also received pennission from the PSCU and PSCW to recover in its gas costs specific
costs associated with derivative contracts,
Questar Gas has significant relationships with affiliates that have allowed it to lower its costs and
improve efficiency. Transactions between Questar Gas and its affiliates are subject to greater scrutiny by
regulatqrs. See Note 8 of the fmancial statements included in Item 8 part II in this Annual Report for a
discussion of gas-processing cost coverage.
Questar Gas is subject to the requirements of the Pipeline Safety Improvement Act. Questar Gas
estimates that it will cost $4,0 to $5.0 million per year to comply with the Act, not including costs of
pipeline replacement if necessary, The PSCU has allowed Questar Gas to recover $2,0 million per year of
the costs beginning June 2006 and to record a regulatory asset for additional incremental operating costs
inculTed to comply with this Act.
Questar Gas Rate Changes
In October 2006, the PSCU approved a pilot program for a CET retroactive to January 1, 2006, to
promote energy conservation. Under the Company s prior rate structure, declining usage lowered revenues
and increasing usage per customer raised revenues, Under the CET, Questar Gas non-gas revenues are
decoupled from the volume of gas used by customers. The tariff specifies a margin per customer for each
month with differences to be defeITed and recovered from customers or refunded to customers through
periodic rate adjustments. These adjustments will be limited to one percent of total revenues for the first
year. The program will be reviewed after one year. Questar Gas recorded a $1,7 million revenue reduction
in 2006 to recognize the impact of implementing the CET.
Effective June 1 2006, the PSCU approved a settlement of other issues and ordered Questar Gas
to reduce the nongas portion of customer rates by $9,7 million to reflect a reduction in depreciation rates, achange in capital structure, and recovery of pipeline integrity costs.
In January 2007, the PSCU approved a "demand-side management" program (DSM) effective
January 1 2007. Under the DSM, Questar Gas will encourage the conservation of natural gas through
advertising, rebates for efficient homes and appliances, and energy audits, The costs of the DSM will be
defeITed and recovered from customers through periodic rate adjustments.
State Rate Regulation
Questar Gas files periodic applications with the PSCU and PSCW requesting pennission to reflect
annualized gas-cost increases or decreases in its rates. Gas costs are passed on to customers on a dollar-for-
dollar basis with no markup,
Page 108 b
Gas-Processing Dispute
In October 2005 , Questar Gas, the Utah Division of Public Utilities and the Committee of Consumer
Services submitted a stipulation to the PSCU to resolve issues related to cost recovery of gas processing
activities. The PSCU issued an order on January 6, 2006, approving the stipulation beginning on February
2005. The stipulation provides for the recovery of90% of the non fuel cost of service for processing and
100% of the fuel costs up to 360 Mdth per year. Half of the third-party processing revenues are shared with
customers after the first $0.4 million, In the fourth quarter of2005 Questar Gas reduced expenses for
recovery of gas costs by $4,9 million for the period from February 1 2005 to December 31, 2005, This
settlement was appealed to the Utah Supreme Court by a group of individuals, The Utah Supreme Court
heard the case in February 2007. An order is anticipated later in the year,
Legal Proceedings
Questar Gas is involved in various commercial and regulatory claims and litigation and other legal
proceedings that arise in the ordinary course of its business. Management does not believe any of them will
have a material adverse effect on the Company s financial position. An accrual is recorded for a loss
contingency when its OCCUITence is probable and damages can be reasonably estimated based on the
anticipated most likely outcome. Some of the claims involve highly complex issues relating to liability,
damages and other matters subject to substantial uncertainties and, therefore, the probability of liability or
an estimate of loss cannot be reasonably determined.
Grynberg, Questar affiliates are involved in various pending lawsuits fIled by Jack Grynberg, an
independent producer. In United States ex reE. Grynberg v. Questar Corp.Civil No. 99-MD-1604
consolidated as In re Natural Gas Royalties Qui Tam Litigation Consolidated Case MDL No. 1293 (D.
Wyo.), Grynberg fIled qui tam claims against Questar under the federal False Claims Act that were
substantially similar to other cases fIled against other industry pipelines and their affiliates. The cases were
consolidated for discovery and pre-trial motions in Wyoming s federal district court. The cases involve
allegations of industry-wide mismeasurement of natural gas quantities on which royalty payments are due
the federal government.
The defendants filed a motion contending that the court has no jurisdiction over the case because
Grynberg cannot satisfy the statutory requirements for jurisdiction. The defendants argued that Grynberg
allegations were publicly disclosed prior to the filing of his complaint and that Grynberg is not the "original
source" of the information on which the allegations are based. By order dated October 20 2006, the district
court granted defendants motion and dismissed all of Grynberg s claims against all the defendants for lack
of jurisdiction. The judge found that Grynberg was not the "original source" and therefore could not bring
the action, Grynberg has appealed the case to the US, Tenth Circuit Court of Appeals.
In Grynberg and L R Exploration Venture v, Questar Pipeline Co.Civil No. 97CV0471 (D,
Wyo.), Grynberg brought breach of contract claims, statutory claims and fraud claims against Questar
entities related to a certain gas purchase contract for the purchase of gas produced from wells located in
Wyoming, In December, 1998, the federal district court granted Questar s motion for partial summary
judgment on a contract termination issue and in June 200 I , the court granted partial summary judgment
dismissing the antitrust claims from the case. By order dated September 12, 2006, the judge also dismissed
the fraud claims and ratable-take claims. The breach of contract claims are the only issues remaining to be
decided. Grynberg has appealed the case to the U,S, Tenth Circuit Court of Appeals,
Environmental Matters
Questar Gas is listed as a responsible party at sites involving hazardous wastes.
Page 108 c
Name of Respondent This Report Is:Date Of Report Year of Report
(1) 129 An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2) D A Resubmission Dec, 31 2006
IMPORTANT CHANGES DURING THE YEAR
IMPORTANT ANNUALIZED RATE CHANGES DURING 2006
TEMP.
AVG ADJ Jan 1,2006 March 1, 2006 REVENUE
UTAH CUST DTH Change in Revenue Change in Revenue March 01, 2006
GSI 804,218 88,991,283 $986,840,584 $906,323,125 ($80,517,459)
GSE
GSS 022 603,398 $7,761,134 $7,215,119 ($546,015)
658 843,761 $71,505,380 $64 084,055 ($7,421,325)
$130,596 $130,464 ($132)
804 282 $16 002,500 $14 296 282 ($1,706,218)
NGV 137,419 $1,547,046 $1,417,052 ($129,994)
16,624,635 449,630 551,469 $101,839
22,410 $12,436 $12 436
18,460,615 840,219 $3,006,363 $166,144
TOTAL UTAH 812,058 134 487,803 $1,089,089,525 $999,036,365 ($90,053,160)
TEMP.
AVG ADJ Jan 1,2006 March 1,2006 REVENUE
WYOMING CUST DTH Change in Revenue Change in Revenue March 01, 2006
GSI 23,388 156,565 $35 002,655 $32 784,409 ($2,218,246)
GSW 083 148,443 $1,686 303 $1,581 984 ($104 319)
283,599 654,591 455,294 ($199,297)
NGV 601 $53 032 $49,798 ($3 234)
378,476 $119 604 $119,604
58,658 $15,447 $15,447
TOTAL WY 24,523 030,342 $39,531,632 $37 006 536 ($2,525,096)
Contract Rates for 1-2, IS2, 1-4, and IS4 are not included in above.
FERC FORM NO.2 (12-96)Page 108 d
Name of Respondent This Report Is:Date of Report Year of Report
(1) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) D A Resubmission Dee, 31 , 2006
IMPORTANT CHANGES DURING THE YEAR
IMPORTANT ANNUALIZED RATE CHANGES DURING 2006
TEMP.
AVG ADJ March 1, 2006 April 7, 2006 REVENUE
UTAH CUST DTH Change in Revenue Change in Revenue April 7, 2006
GSI 804,218 88,991,283 $906,323,125 $872,422,787 ($33,900,338)
GSE
GSS 022 603,398 $7,215,119 $6,985,259 ($229,860)
658 843,761 $64,084,055 $61,096 055 ($2,988,000)
$130,464 $130,464
804,282 $14,296,282 $13,608,960 ($687,322)
NGV 137,419 $1,417,052 $1,364 704 ($52,348)
624,635 551,469 $2,551 469
22,410 $12,436 $12,436
18,460,615 $3,006,363 $3,006,363
TOTAL UTAH 812 058 134 487,803 $999,036,365 $961 178,497 ($37,857 868)
TEMP.
AVG ADJ March 1, 2006 April 7, 2006 REVENUE
WYOMING CUST DTH Change in Revenue Change in Revenue Nov 1, 2005
GSI 23,388 156,565 $32,784,409 $32,784,409
GSW 083 148,443 $1,581,984 $1,581,984
283,599 455,294 $2,455,294
NGV 601 $49,798 $49,798
378 476 $119 604 $119,604
58,658 $15,447 $15,447
TOTAL WY 523 030,342 $37,006,536 $37,006,536
Contract Rates for 1-, IS2, 1-, and IS4 are not included in above.
FERC FORM NO.2 (12-96)Page 108 e
Name of Respondent This Report Is:Date of Report Year of Report
(1) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) 0 A Resubmission Dec. 31 2006
IMPORTANT CHANGES DURING THE YEAR
IMPORTANT ANNUALIZED RATE CHANGES DURING 2006
TEMP.
AVG ADJ April 7, 2006 June 1,2006 REVENUE
UTAH CU8T DTH Change in Revenue Change in Revenue June 1, 2006
G81 804 218 991 283 $872,422 787 $863,333,577 ($9,089,210)
GSE
GSS 022 603,398 $6,985,259 $6,874,772 ($110,487)
658 843 761 $61 096 055 $60,914,094 ($181 961)
$130,464 $127,008 ($3,456)
804 282 513,608,960 $13,583,654 ($25,306)
NGV 137,419 $1,364 704 348 875 ($15,829)
16,624,635 $2,551,469 $2,448,217 ($103 252)
22,410 $12,436 $11,678 ($758)
18,460 615 $3,006,363 883,602 ($122 761)
TOTAL UTAH 812 058 134,487,803 $961,178,497 $951,525,477 ($9 653 020)
TEMP.
AVG ADJ April 7, 2006 June 1,2006 REVENUE
WYOMING CUST DTH Change in Revenue Change in Revenue June 1, 2006
GSI 23,388 156,565 $32,784 409 $32 784 409
GSW 083 148,443 $1,581,984 $1,581,984
283,599 $2,455,294 455,294
NGV 601 $49,798 $49,798
378,476 $119,604 $119,604
58,658 $15,447 $15 447
TOTAL WY 523 030,342 $37,006,536 $37,006 536
Contract Rates for 1-182,4, and 184 are not included in above.
FERC FORM NO.2 (12-96)Page 108 f
Name of Respondent This Report Is:Date of Report Year of Report
(1) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) D A Resubmission Dec. 31 , 2006
IMPORTANT CHANGES DURING THE YEAR
IMPORTANT ANNUALIZED RATE CHANGES DURING 2006
TEMP.
AVG ADJ June 1, 2006 Nov. 1 , 2006 REVENUE
UTAH CUST DTH Change in Revenue Change in Revenue Nov. 1,2006
GSI 771,737 166,343 $863,333,577 $771,358 081 ($91,975,496)
GSE
GSS 926 582 764 $6,874 772 $6,242 618 ($632,154)
655 149,969 $60 914,094 $52,792,175 ($8,121 919)
$127,008 $129,852 844
270,250 $13,583,654 $11,696,949 ($1,886,705)
NGV 129,548 $1,348,875 $1,206,123 ($142 752)
807,883 448,217 431,401 ($16,816)
23,217 $11,678 $11,678
17,957,998 883,602 $2,882,497 ($1 105)
TOTAL UTAH 779,476 127,087,972 $951,525,477 $848,751,374 ($102 774 103)
TEMP.
AVG ADJ June 1 , 2006 Nov. 1,2006 REVENUE
WYOMING CUST DTH Change in Revenue Change in Revenue Nov. 1 2006
GSI 764 048,035 $32,784 409 $28,081 634 ($4,702,775)
GSW 122 159,217 581,984 $1,360,829 ($221,155)
286 414 455 294 $2,032,778 ($422,516)
NGV 886 $49,798 $42 946 ($6,852)
349,647 $119,604 $119,604
66,007 $15,447 $15,447
TOTAL WY 23,939 917 206 $37,006,536 $31,653,238 ($5,353,298)
Contract Rates for 1-, IS2, 1-4, and IS4 are not included in above.
FERC FORM NO.2 (12-96)Page 108 g
Name of Respondent This Report is:Date of Report Year of Report
(1) OX An Original (Mo, Da, Yr)
OUEST AR GAS CO~ ANY 2) Fi A Resubmission Dec. 31 2006
CO~ ARA TIVE BALANCE SHEET (ASSETS AND bTHER DEBITS)
Title of Account Ref.Balance at Balance at
Line Page No.Beginning ofYeaJ End of Year
No.(a)(b)
UTILITY PLANT
Utilitv Plant 001-106. 114)200-201 378,578.772 1.407 097 983
Construction Work in Progress (107)200-201 435 615 16,554697
TOTAL Utility PlaniTEnter Total oflines 2 and 3)1.389014.386 423 652.680
(Less) Accum. Provo for DepI. Amort. Depi. (108 , Ill, 115)200-201 (615 934.453 7597 958.748
Net Utility Plant (Enter Total of line 4 less 5)773 079,933 825 693.932
Nuclear Fuel (120.1-120.4 120.
(Less) Accum. Provo for Amort. ofNuci. Fuel Assem..020.
Net Nuclear Fuel rEnter Total of line 7 less 8)
Net Utilitv Plant (Enter Total oflines 6 and 9)773 079,933 825 693 932
Utilitv Plant Adjustments 7i 16)122-123
Gas Stored Underground-Noncurrent(1 17)220
OTHER PROPERTY AND INVESTMENTS
Nonutilitv Property (121)221
(Less) Accum. Provo for Depr. and Amort. 022)221
Investments in Associated Comoanies(123)222-223
Investment in SubsidiarY Companies (I23.1)224-225
(For Cost of Account 123.1 , See Footnote Page 224, line 42)
Noncurrent Portion of Allowances
Other Investments (124f 222-223-229
Special Funds (125-128)029,883 4 140 237
TOTAL Other Property & Investments (Total oflines 14 thru 20)029,883 140,237
CURRENT AND ACCRUED ASSETS
Cash (131)092 237 575 339
Special Deposits 032-134)
Working Funds (135)114 150 450
Temporarv Cash Investments (136)222-223
Notes Receivable 041)
Customer Accounts Receivable 042)188 627,099 151 376 479
Other Accounts Receivable (143)772 740 514 416
(Less) Accum. Provo for Uncollectible Acct.-Credit (144)(4050 687)089.039
Notes Receivable trom Associated Companies 045)
Accounts Receivable from Assoc. Companies (146)101 771 084 714Fuel Stock 051)
Fuel Stock Expense Undistributed 052)
Residuals (Elec) and Extracted Products (Gas) 053)
Plant Material and OperatinQ Supplies 054)660 794 769609
Merchandise 055)
Other Materials and Suoolies056)813 63 002
Nuclear Materials Held for Sale 057)
Allowances (158.1 and 158.
I(Less) Noncurrent Portion of Allowances
Stores Expense Undistributed(163)(79,876)590
," Gas Stored Underground - Current(164.220 57 526 203 148 152Liquefied Natural Gas Stored and Held for Processing 064.164.3 220
Prepayments 065)230 125 155 381 474Advances for Gas (166-167)229
Interest and Dividends Receivable (171 )
Rents Receivable 072)
Accrued Utility Revenues TI73)
Miscellaneous Current and Accrued Assets 074)
TOTAL Current & Accrued Assets (Enter Total of lines 23 thru 50)259 957428 216 928.185
FERC FORM NO.2 (12-96)Page 110
Name of Respondent This Report is:Date of Report Year of Report(1) ug An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) Fi A Resubmission Dec. 31, 2006
COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line Title of Account Ref.Balance at Balance atNo.Page No.Beginning of Year End of Year
(a)(b)(c)(d)
DEFERRED DEBITS
Unamortized Debt Expense (181)398 230 186 129
Extraordinary Property Losses (182.230
Unrecovered Plant and Regulatory Study Costs (182.230
Other Regulatory Assets (182.547,423 073 205Prelim. Survey and Investigation Charges (Electric) (183)
Prelim. Sur. and Invest. Charges (Gas) (183.183.231
Clearing Accounts (184)(268 364)(294 895)Temporary Facilities (185)
Miscellaneous Deferred Debits (186)233 343 (6,563)
Dei Losses from Disposition of Utility PIt. (187)
Research, Devel. and Demonstration Expend. (188)352-353
Unamortized Loss on Reacquired Debt (189)504 294 756,704Accumulated Deferred Income Taxes (190)234-235 277 518 778 859Unrecovered Purchased Gas Costs (191)851 814 (43 360 448)Misc Dr-Fin Hedge Mark-to-Mrkt 573 500TOTAL Deferred Debits (Enter Total of lines 53 thru 65)321 256 293 508)TOTAL Assets and other Debits (Enter Total oflines 10, 11 , 12
, 51 , and 66) 103 388 500 038 468 846
L..1.
FERC FORM NO.2 (12-96)Page III
Name of Respondent This Report is :Date of Report Year of Report
(1)An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2)A Resubmlssion Dec. 31 , 2006
COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Omit Cents
Title of Account Ref.Balance at Balance at
Line Page No.Beginning of Year End of Year
No.(a)(b)(c)(d)
PROPRIETARY CAPITAL
Common Stock Issued (201)250-251 974 065 974 065
Preferred Stock Issued (204)250-251
Capital Stock Subscribed (202, 205)252
Stock Liability for Conversion (203 , 206)252
Premium on Capital Stock (207)252 115 254 975 115 959,087
Other Paid-In Capital (208-211)253
Installments Received on Capital Stock (212)252
(Less) Discount on Capital Stock (213)254
(Less) Capital Stock Expense (214)254
Retained Earnings (215, 215., 216)118-119 1;1i1!~l~~J$.if.jj~
,~ ",", ,
;fJi,
.,,
Unappropriated Undistributed Subsidiary Earnings (216.118-119
(Less) Reacquired Capital Stock (217)250-251
TOTAL Proprietary Capital (Enter Total oflines 2 thru 13)318 324 902 329,559 239
LONG-TERM DEBT
Bonds (221)256"257 323 000,000 313 000 000
(Less) Reacquired Bonds (222)256-257
Advances from Associated Companies (223)256-257
Other Long-Tenn Debt (224)256-257
Unamortized Premium on Long-Tenn Debt (225)258-259
(Less) Unamortized Discount on Long- Tenn Debt-Dr. (226)258-259
TOTAL Long-Tenn Debt (Enter Total of lines 16 thru 21)323 000 000 313 000 000
OTHER NONCURRENT LIABILITIES
Obligations Under Capital Leases - Noncurrent (227)
Accumulated Provision for Property Insurance (228,
Accumulated Provision for Injuries and Damages (228,
Accumulated Provision for Pensions and Benefits (228.
Accumulated Miscellaneous Operating Provisions (228.4)014 181 072 292
Accumulated Provision for Rate Refunds (229)
TOTAL Other Noncurrent Liab. (Enter Total of lines 24 thru 29)014 181 072 292
CURRENT AND ACCRUED LIABILITIES
Notes Payable (231)000 000
Accounts Payable (232)151 924 079 140 338 832
Notes Payable to Associated Companies (233)400 000 200 000
Accounts Payable to Associated Companies (234)27,409 720 565,977
Customer Deposits (235)770 525 839,483
Taxes Accrued (236)262-263 455 249)427,081
Interest Accrued (237)308 098 319 821
Dividends Declared (238)
Matured Long-Tenn Debt (239)
Matured Interest (240)
Tax Collections Payable (241)871 659 957 975
Miscellaneous Current and Accrued Liabilities (242)268 911 190 863 150
Obligations Under Capital Leases-Current (243)
TOTAL Current & Accrued Liab. (Enter Total oflines 32 thru 4 284 140 022 226 512 319FERC FORM NO.2 (12-96)Page 112
Name of Respondent This Report is:Date of Report Year of Report
(1) (j An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) 0 A Resubmission Dec. 31, 2006
STATEMENT OF INCOME FOR mE YEAR
1. Report amounts for accounts 412 and 413, Revenue 5. Give concise explanations concerning unsettled
and Expenses from Utility Plant Leased to Others, in rate proceedings where a contingency exists such
another utilty column (i,k,m,o) in a similar maner that refuds of a material amount may need to be
to a utilty deparent. Spread the amount(s) over made to the utility's customers or which may result
lines 02 thr 24 as appropriate. Include these amounts in a material refund to the utilty with respect to
in columns (c) and (d) totals.power or gas purchases. State for each year
2. Report amounts in account 414, Other Utility affected the gross revenues or costs to which the
Operating Income, in the same manner as accounts 412 contingency relates and the ta effects together
and 413 above.with an explanation of the major factors which
3. Report data for lines 7, 9 and 10 for Natual Gas affect the rights of the utilty to reta such
companies using accounts 404.1,404.2,404.3,407.1 revenues or recover amounts paid with respect to
and 407.2. power and gas purchases.
4. Use page 122 for importt notes regarding the 6. Give concise explantions concerning
statement of income or any account thereof.significant amounts of any refunds made or
(Ref.)TOTAL
Account Page
Line No.Current Yea Previous Year
No.(a)(b)(c)(d)
I UTILITY OPERATING INCOME
2 Operating Revenues (400)300-301 1,064,587,155 962,547,441
3 Operating Expenses
4 Operating Expenses (401)317-325 927,387,359 826,070,792
5 Maintenance Expenses (402)317-325 9,445,792 7,189,978
6 Depreciation Expense (403)336-338 40,817,774 45,754,340
7 Amort. & DepL. of Utilty Plant (404-405)336-338 31,107 36,970
8 Amort. of Utility Plant Acq. Adj. (406)336-338
9 Amort. of Propert Losses, Unrecovered Plant
and Regulatory Study Costs (407)
10 Amort. of Conversion Expenses (407)
II Regulatory Debits (407.3)
12 (Less) Regulatory Credits (407.4)
13 Taxes Other Than Income Taxes (408.1)262-263 11,643,128 11,012,532
14 Income Taxes - Federal (409.1)262-263 17,046,383 17,674,328
15 - Other (409.1)262-263 4,126,758 1,935,465
16 Provision for Deferred Income Taxes (410.1)234-235 (1,184,662)211,754
17 (Less) Provision for Deferred Income Taxes-Cr. (411.234-235 0 0
18 Investment Tax Credit Adi. - Net (411.4)0 °
19 (Less) Gains from Disp. of Utility Plant (411.6)
20 Losses from Disp. of Utilty Plant (411.7)
21 (Less) Gains from Disposition of Allowances (411.8)
22 Losses from Disposition of Allowances (411.9)
23 TOTAL Utility Operating Expenses
(Enter Total of lines 4 thru 18)1,009,313,640 909,886,158
24 Net Utility Operating Income (Enter Total of line 2
less 19) (Carr forward to page ii 7, line 21)55,273,515 52,661,283
FERC FORM NO.2 (12-96)Page 114
Name of Respondent This Report is: Date of Report Year of Report
(I) ~ An Origin (Mo, Da, Yr)QUESTAR GAS COMPAN (2) 0 A Resubmission Dec. 31, 2006
STATEMENT OF INCOME FOR THE YEAR Continued
received during the year resulting from settlement 9. Explain in a footnote if the previous year's
of any rate proceeding affecting revenues received or figures are different from that reported in prior
costs incurred for power or gas purchases, and a report.
summar of the adjustments made to balance sheet, 10. If the columns are insufficient for reportng
income, and expense accounts. additional utilty deparents, supply the appropriate
7. If any notes appearing in the report to stock- account titles, line 2 to 23, and report the
holders are applicable to this Statement of Income, information in the blank space on page 122 or in a
such notes may be attched at page 122. supplementa staement.
8. Enter on page 122 a concise explanation of only
those changes in accounting methods made durng
the year which had an effect on net income, including
the basis of allocations and apportionments from
those used in the preceding year. Also give the
approximate dollar effect of such changes.
ELECTRIC UTILITY
Current Year
(e)
GAS UTIITY
Current Year Previous Year Current Year
927,387,359
9,445,792
40,81.,774
31,107
826,070,792
7,189,978
45,754,340
36,970
10
11
12
11,643,128 11,012,532 13
17,046,383 17,674,328 14
4,126,758 1,935,465 15
(1,184,662)211,754 16
0 0 17
0 0 18
19
20
21
22
23
1,009,313,640 909,886,158
24
55,273,515 52,661,283
FERC FORM NO.2 (12-96)Page 115
Name of Respondent This Report is:Date of Report Year of Report
: OUESTAR GAS COMPANY
(1) ~ An Original (Mo, Da, Yr)1/2) A Resubrnssion
Dec. 31 2006STATEMENT OF INCOME FOR mE YEAR (Continued)
(Ref.)TOTAL
Account PageLineNo.Current Year Previous YearNo.(a)(b)(c)(d)25 Net Utilty Onerating Income (Cared fwd. from oage 114)-55,273,515 52661,28326OTHER INCOME AND DEDUCTIONS
27 Other Income
28 Nonutilitv Operating Income
29 Rev. From Merchandising. Jobbing & Contract Work (415)
30 (Less) Costs & Exo. ofMerch.Job. & Contr. Work (416)
31 Revenues From Nonutilitv Operations (417)
32 (Less) Expenses of Non utility Operations (417.1)
33 Nonooerating Rental Income (418)
34 Eauitv in Earings ofSubsidiar Comoanies (418.1)119 0 035Interest and Dividend Income (419)1.61,443 830.63536Allow. for Other Funds Used During Constrction (419.1)0 037Miscellaneous Nonooerating Income (421)5.703,841 4.396,43838Gain on Disposition of Prooert (421.1)122228 168,95239TOTAL Other Income (Enter Total of lines 25 th 34)6,987,511 5,396,02440Other Income Deductions
41 Loss on Disoosition ofProoert (421.2)417.224 161.73442Miscellaneous Amortization (425)340 0 7,81243Miscellaneous Income Deductions (426.1-426.5)340 347869 300.43944TOTAL Other Inc. Deductions(Total oflines 37 thru 39)765,093 469,98645Taxes Aoolic. to Other Income and Deductions
46 Taxes Other Than Income Taxes (408.2)262-263
47 Income Taxes-Federal (409.2)262-263 1,407,354 (5,826,577)48 Income Taxes-Other (409.2)262-263 287186 506,89749Provision for Deferred Inc. Taxes (410.2)234-235 560276 7,168,89750(Less) Provision for Deferred Income Taxes-Cd 411.2)234-235
51 Investment Tax Credit Adj.-Net (411.5)
52 (Less) Investment Tax Credits (420)092,099 (394889'53 TOTAL Taxes on Other Inc.& Deduct.iTotal of 42 thru 48)1862717 1,454.32854Net Other Inc. & Deduct. (Enter Total of lines 35,40,49)4,359,702 3,471,71055INTEREST CHARGES
56 Interest on Long-Term Debt (427)19628,284 16.986.55257Amort. of Debt Disc. and Exoense (428)258-259 1 021.879 1.010.05558Amort. of Loss on Reacauired Debt (428.1)0 059(Less) Amort. of Premium on Debt-Credit (429)258-259 0 060(Less) Amort. of Gain on Reacquired Debt-Credit (429.1)0 061Interest on Debt to Assoc. Comoanies (430)340 378.195 1.679,18662Other Interest Expense (431 )340 1.931,556 561.6463(Less) Allow. for Borr. Funds Used During Constr.-Cr.(432)(356922 (7915864Net Interest Charges (Enter Total oflines 52 thru 59)22,602,993 20,158,39965Income Before Extraord. Items (Total of lines 21 50 & 60)37,030,224 35,974,59466EXTRAORDINARY ITEMS
67 Extraordinary Income (434)0 068(Less) Extrordinar Deductions (435)
69 Net Extraord. Items(Enter Total ofline 63 less line 64)
70 Income Taxes~Federal and Other(409j)262-263
71 Extraord. Items After Taxes(Total of line 65 less line 66)
72 Net Income (Enter Total of lines 65 and 67)37030,224 35,974.594
FERC FORM NO.2 (12-96)Page 116
Name of Respondent This wPrt Is:Date of Report Year of Report
Questar Gas Company (1) n Original (Mo, Da, Yr)Dec. 31,2006(2) ñA Resubmlssion
Statement of Accumulated ComDrehensive Income and Hedoina Activities
1. Report in columns (b) (c) and (e) the amounts of accumulated other comprehensive income items, on a net-of-ta basis, where appropriate.
2. Report in columns (f) and (g) the am$unts of other categories of other cash fl hedges.
3. For each category of hedges that have been accounted for as "fair value hedges", report the accounts affected and the related amounts in a footnote.
Unreaized Gams Minimum Pension Foreign Currency OtherUneand losses on liabißty Adjustment Hedges AdjustmentsNo.Item avallable.lor.sale (net amout),
.securilies
(a)(b)(c)(eI (e)
1 Balance 01 Accout 219 at Begnng of Precedg
Year .
2 Preceding Year Reclassifcatio from Accout 219 to
Net Income
3 Precedin Year Chans In Fai Value
,4 Total (lines 2 and 3)
5 Balane of Accou 219 at End of Precedng Year I
Begnin 01 Currnt Year
6 Current Year Reclasslfcåtlon from Accont 219 to
Net Income
? Current Year Changes in Fair Value
8 Total (lines 6 and 7)
9 Balance of Acct 219 at End of Current Year
,
i
"
.
FERC FORM NO. 2 (NEW 06-02)Page11?
t
Questar' Gas Company
Year of Report
Dec. 31, 2006
Name of Respondent Dale of Report
(Mo, Da, Yr)
OlherCash
Flow Hedges
(Specfy)
Line
No.
OlherCash
Flow HS!ges
(Specify)
Totals lor each
caiegorof
lIems recorded in
Account 219
(h)(f)(g)
1
2,'
3
4
5
6
7
8
9 7,573 500
(This Gas Purchase Price Hedge is rec rded in accoun 192000)
FERC FORM NO.2 (NEW 06-02)
Page 117a
Net Income
(Carred Forward
Irom Page 116,
line 72)
(Q
Totl
Comprehensive
Income
BLANK PAGE
(Next page is 118)
Name of Respondent This Report is:Date of Report Year of Report
(l) Pf An Original (Mo, Da, Yr)
OUESTAR GAS COMPANY 2) A Resubmission Dec. 31, 2006
STATEMENT OF RETAIND EARGS FOR THE YEAR
i. Report all changes in appropriated retained earnings,5. Show dividends for eah clas and series of capital
unappropriated retained earings, and unappropriated stock.
undistributed subsidiar earings for the year.6. Show separately the State and Federa income tax
2. Each credit and debit during the yea should be effect of items shown in account 493, Adjustments to
identified as to the retained earings account in which Retained Eaings.
recorded (Accounts 433, 436-439 inclusive). Showthe 7. Explain in a footnote the basis for detenining the
contra primar account affected in column (b).amount reserved or appropriated. If such reservation
3. State the purpose and amount for each reservation or or appropriation is to be recurrnt, state the number
appropriation of retained earings.and annual amounts to be reserved or appropriated as
4. List first account 439, Adjustments to Retained well as the totals eventually to be acumulated.
Eaings, reflecting adjustments to the opening balance 8. At lines 3,4,7,9,1 i. And 15, add rows as necesar
ofretained eaings. Follow by credit, then debit items,to report all data. When rows are added, the additional
in that order.row numbers should follow in sequence, e.g., 3.01, 3.02, etc.
Item Contra Primar Curt Yea Previous Yea
Line Account Affected Amount Amount
(in dollar)(in dollars)No.(a)(b)(c)(d)UNAPPROPRl TED RETAID EARGS (Accunt 2 I 6)
I Balance. Beginning of Yea 180,095,862 170.121268
2 Changes (IdentifY by prescribed retained earings accounts)0 0
3 Adjustments to Retained Earnings (Account 439)
4 Credit:
5 Credit:
6 Credit: Retirement of Preferrd Stock J 204.0 0 07Credit:
8 Credit:
9 TOTAL Credits to Retained Earings(Acct.439)(Total of/ines 4 thru 8)0 0
10 Debit:
11 Debit: Retirement of Preferred Stock 204.0 0
12 Debit:
13 Debit:
14 Debit:
15 TOTAL Debits to Retained Eaings(Acct.439)(Total of/ines 10 th 14)0 0
16 Balance Transferred from Income (Account 433 less Account 418.1)37030224 3597459417Appropriations of Retained Earings (Account 436)
18
19
20
21
22 TOTAL Appropriations of Retained Eaings(Acct,436)(Lines 18 thru 21)0 0
23 Dividends Declared - Preferrd Stock (Account 437)
24 8% Cumulative Preferred S100 Staed Value 0250 026
27
28
29 TOTAL Dividends Declared-Preferred Stock(Acct,437)(Lines 24 thru 28)
30 Dividends Declared - Common Stock (Account 438)
31 Cash Dividends
32
33 .
34
35
36 TOTAL Dividends Declared-Coiron Stock(Acct.438)(Lines 31 thru 35)(26.500,000)(2600000037Transfers from Acct.216.I,Unappropriated Undistributed Subsidiary Earnings
38 Balance-End of Year (Total of/ines 1,9,15,16,22,29,36 and 37)190,626,086 180095862FERC FORM NO.2 (12-96)Page 118
Name of Respondent This Report is:
(1) CX An OriginalUESTAR GAS COMPANY 2 0 A Resubmission
STATEMET OF RETAIND EARNINGS FOR THE YEAR ContiuedItem Current Year
Amount
(in dollars)
(b
Year of Report
Dec.31 2006
Prior Year
Amount
(in dollars)
(c
Line
No.a
APPROPRIATED REAINED EARNINGS (Account 2 15)
State balance and purose of each appropriated retained earings amount at end of yearand give accounting entries for any applications of appropriated retained earnings
during the year.
39
40
41
42
43
44
45 TOTAL Appropriated Retained Eaings (Account 215)
APPROPRlTED REAIND EARNGS-AMORTIZATION REERVE,FEDERAL(Account 215.1)
State below the total amount set aside through appropriations of retained earings,
as of the end of the year, in compliance with the provisions of Federally granted
hydroelectric project licenses held QY the respondent. If any reductions or changes
other than the normal annual credits hereto have been made during the year, explain
such items in a footnote.
46 TOTAL Appropriated Retained Earings-Amortization Reserve, Federa (Account 215.1)
47 TOTAL Appropriated Retained Earnings (Account 215, 215.1)(ter Total of lines 45 & 46)
48 TOTAL Appropriated Retained Earings (Account 215,215.1, 216)(EnterTotal of lines 38 & 47)
UNAPPROPRIATED UNISTRIBUTED SUBSIDIARY EARNGS (Account 216.
49 Balance - Beginning of Year (Debit or Credit)
50 Equity in Earnings for Year (Credit) (Account 418. i)
51 (Less) Dividends Received (Debit)
52 Other Changes (Explain)
53 Balance- End of Year (Total of lines 49 thm 52)
o
o
o
o
o
o
FERC FORM NO.2 (12-96)Page 119
Name of Respondent This Report Is:Date of Report Year of Report
(I) X An Original (Mo, Da, Yr)
QUE STAR GAS COMPANY 1(2)A Resubmission Dec. 31,2006
STATEMENT OF CASH FLOWS
i. Ifthenotes to the cash flow statement in the respl 2. Under "Other" specify significant amounts and group
annual stockholders report are applicable to this state-others
ment, such notes should be attached to page 122.3. Operating Activities--Other: Include gains and losses per-
mation about noncash investing and financing activities taining to operating activities only. Gains and losses per-I....should be provided on page 122. Provide also on page taining to investing and financing activities should be
122 a reconcilation between "Cash and Cash Equivalents reported in those activities. Show on page 122 the
at End of Year ii with related amounts on the balance amounts of interest paid (net of amounts capitalized) and
sheet.income taxes paid.
Line DESCRIPTION (See Instructions for Explanation of Codes)
~No.(a)(bINet Cash Flow from Ooeratinl! Activities
2 Net Income (Line 68(c) on page 117)37,030,2243Non-Cash Charl!es (Credits) to Income
4 Deoreciation and Depletion 43777,439
5 AmortiZàtion oiTSoecifv
6 ARO - Accum Deor Chanl!e 76,9397Share-based Comoensation 704,112
8 Deferred Income Taxes (Net)04,765,394)9 Investment Tax Credit AdiustmentsCNeO 092,09910NetIncreaseDecrease in Receivables 36,564,381IINetIncreaseDecrease in Inventory 6.154,58212NetIncreaseDecrease in Allowances Inventorv
0,427,703 ..13 Net Increase Decrease in Pavables and Accrued Exoenses
14 Net Increase Decrease in Other Regulatorv Assets (525,782 ...15 Net Increase Decrease) in Other Regulatory Liabilties (240,31916(Less) Allowance for Other Funds Used Durinl! Constrction 356,92217(Less) Undistributed Earnings from Subsidiar Comoanies
18 Other:
19 Unrecovered Purchased Gas Costs 75,638,76220Other Deferred Debits 1,003,12521Preoavments743,68222Deferred Credits 5,312,07323Asset Retirement Obligation
58, II I24Net Cash Provided bv (Used in) Ooeratinl! Activities
25 (Total of lines 2 thru 20)188,069,05326Cash Flows from Inv.estment Activities:
27 Construction and Acquisition of Plant (including land):
28 Gross Additions to Utilty Plant (less nuclear fuel)797,255,85429Gross Additions to Nuclear Fuel
30 Gross Additions to Common Utilty Plant .
31 Gross Additions to Nonutility Plant
32 (Less) Allowance for Other Funds Used During Constrction 056,922'33 Other: Retirement of Utili tv Plant 787,47834
35 Cash Outfows for Plant (Total oflines 26 thr 33)(96,825,298)36
37 Acquisition of Other Noncurrent Assets (d)(110,354'38 Proèeeds from Disoosal of Noncurrent Assets fef)
39
40 Investments in and Advances to Assoc. andSubsidiar Companies
41 Contributions and Advances from Assoc. and Subsidiar Companies
42 Disposition ofInvestments in (and Advances to)
43 Associated and Subsidiar Companies
44 Purchase ofInvestment Securities (a)
45 Proceeds from Sales ofInvestment Securities (a)
FERC FORM NO.2 (12-96)Page 120
Name of Respondent This Report Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
QUESTARGASCOMTANY (2)A Resubmission Dec. 3 I, 2006
STATEMENT OF CASH FLOWS (Continued)
4. Investing Activities 5. Codes used:
Include at Other (line 3 I) net cash outflow to acquire other (a) Net proceeds or payments.
companies. Provide a reconcilation of assets acquired (b) Bonds, debentures and other 10ng-tenn debt.with liabilties assumed on page 122.(c) Include commercial paper.Do not include on this statement the dollar amount of (d) IdentifY separately such items as investments, fixedleaes capitalized per USofA General Instruction 20; in-assets, intagibles, etc.
stead provide a reconcilation of the dollar amount of
leases capitalized with the Dlant cost on page 122 6. Enter on page 122 clarifications and eXDlanations.
Lim DESCRIPTION (See Instruction No.5 for Explanation of codes)AmountsNo.(a)(b)46 Loans made or Purchased
47 Collections on Loans
48
49 Net (Increase Decrease in Receivables
50 Net (Increase Decrease in Inventory
51 Net (Increase) Decrease in Allowances Held for Speculation
52 Net (Increase Decrease in Payables and Accrued Expenses
53 Other:
54
55
56 Net Cash Provided by (Used in) Investing Activities
57 (Total of lines 34 thru 55)(96,935,651)58
59 Cash Flows from Financinll Activities:
60 Proceeds from Issuance of:
61 Notes Pay-Current Portion L T Debt 10,000,00062Long-tenn Debt (b)(l0,000,00063Preferred Stock
64 Common Stock
65 Other: Notes payable to affiiates (64,200,000)66
67 Net Increase in Short-Tenn Debt(c)
68 Other:
69
70
71 Cash Provided bv Outside Sources (Total of lines 61 thru 69)(64,200,000)72
73 Payments for Retirement of:
74 Long-tenn Debt (b)
75 Preferred Stock 076Common Stock
77 Other: Amortization of Discount on Long-tenn Debt
78
79 Net Decrease in Short-tenn Debt (c)
80
81 Dividends on Preferred Stock
82 Dividends on Common Stock ~83 Net Cash Provided by (Used in) Financing Activities
84 (Total of lines 70 thru 8 I)(90,700,00085
86 Net Increase (Decrease) in Cash and Cash Equivalents
87 (Total oflines 22, 57 and 83)433,402
88
89 Cash and Cash Equivalents at Beginning of Year 3,206,38790
91 Cash and Cash Equivalents at End of Year 3,639,789FERCFORM NO.2 (12-96)Page 121
Name of Respondent This Report is :Date of Report Year of Report
(I) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2)A Resubmission Dec. 31 2006
COMPARATIVE BALANCE SHEET (LIABILITES AND OTHER CREDITS) (Continued)
Omit Cents
Title of Account Ref.Balance at Balance at
Line Page No.Beginning of Year End of Year
No.(a)(b)(c)(d)
DEFERRED CREDITS
Customer Advances for Construction (252)248 567 028,490
Accumulated Deferred Investment Tax Credits (255)381 843 989 743
Deferred Gains from Disposition of Utility Plant (256)
Other Deferred Credits (253)269 162 647 694 797
Other Regulatory Liabilities (254)278 072 742 832,423
Unamortized Gain on Reacquired Debt (257)260
Accumulated Deferred Income Taxes (281-283)131 043 596 117,779,543
TOTAL Deferred Credits (Enter Total oflines 47 thru 52)176 909,395 168 324 996
TOTAL Liabilities & Other Credits (Enter Total of lines 14, 22
, 45, 54 )103 388 500 038 468 846
FERC FORM NO.2 (12-96)Page 113
1. Use the space below for important notes regarding the
Balance Sheet, Statement of Income for the year
Statement
of Retained Earnings for the year, and Statement of Cash
Flows, or any account thereof. Classify the notes according
to each basic statement, providing a subheading for each
statement except where a note is applicable to more than
one statement.
2. Furnish particulars (details) as to any significant
contingent assets or liabilities existing at end of year
including a brief explanation of any action initiated by
the Internal Revenue Service involving possible
assessment
of additional income taxes of material amount, or of a
claim for refund of income taxes of a material amount ini-
tiated by the utility. Give also a brief explanation of
any dividends in arrears on cumulative prefelTed stock.
3. For Account 116, Utility Plant Adjustments, explain
the origin of such amount, debits and credits during the
Note 1 - Summary of Significant Accounting Policies
year, and plan of disposition contemplated, giving re-
ferences to Commission orders or other authorizations
respecting classification of amounts as plant adjust-
ments and requirements as to disposition thereof.
4. Where Accounts 189, Unamortized Loss on Reacquired
Debt, and 257, Unamortized Gain on Reacquired Debt, are
not used, give an explanation, providing the rate treat-
ment given these items, See General Instruction 17 of
the Uniform System of Accounts.
5. Give a concise explanation of any retained earn-
ings restrictions and state the amount of retained
earnings affected by such restrictions.
6. If the notes to financial statements relating to
the respondent company appearing in the annual report to
the stockholders are applicable and furnish the data re-
quired by instructions above and on pages 114-121 , such
notes may be attached hereto.
Nature of Business
Questar Gas Company (Questar Gas or Company) is a wholly-owned subsidiary of Questar. The Company
provides retail natural gas distribution in Utah, southwestern Wyoming and a small portion of southeastern
Idaho.
Preparation of Financial Statements
The financial statements of Questar Gas were prepared in accordance with U.S, generally accepted
accounting principles (GAAP) and with the instructions for annual reports on Form lO-K and Regulations
X and S-
Use of Estimates
The preparation of financial statements and notes in conformity with GAAP requires management to
formulate estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and
expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these
estimates.
Regulation
Questar Gas is regulated by the PSCU and the PSCW. The Idaho Public Utilities Commission has
contracted with the PSCU for rate oversight of Questar Gas operations in a small area of southeastern
Idaho. These regulatory agencies establish rates for the transportation and sale of natural gas, The
regulatory agencies also regulate, among other things, the extension and enlargement or abandonment of
jurisdictional natural gas facilities. Regulation is intended to permit the recovery, through rates, of the cost
of service, including a return on investment.
The fmancial statements of rate-regulated businesses are presented in accordance with regulatory
requirements. Methods of allocating costs to time periods, in order to match revenues and expenses, may
differ from those of other businesses because of cost-allocation methods used in establishing rates,
Regulatory assets and liabilities are recorded to reflect these timing differences,
Revenue Recognition
Questar Gas records revenues for gas delivered to residential and commercial customers but not billed as of
the end of the accounting period. Unbilled gas deliveries are estimated for the period from the date meters
are read to the end of the month. Approximately one-half month of revenue is estimated in any period. Gas
Page 122
costs and other variable costs are recorded on the same basis to ensure proper matching of revenues and
expenses, Questar Gas tariff allows for monthly adjustments to customer bills to approximate the effect of
abnonnal weather on nongas revenues. The weather-nonnalization adjustment significantly reduces the
impact of weather on gas-distribution earnings. In 2006, the PSCU approved a pilot program for a
conservation enabling tariff' (CET) effective January 1 2006, to promote energy conservation. Under the
CET, Questar Gas non-gas revenues are decoupled from the volume of gas used by customers, The tariff
specifies a margin per customer for each month with differences to be deferred and recovered from
customers or refunded to customers through periodic rate adjustments. These adjustments will be limited to
one percent of total revenues for the first year.
Cash and Cash Equivalents
Cash equivalents consist principally of repurchase agreements with maturities of three months or less. In
almost all cases, the repurchase agreements are highly liquid investments in overnight securities made
through commercial-bank accounts that result in available funds the next business day.
Purchased-Gas Adjustments and Other Regulatory Assets and Liabilities
Questar Gas accounts for purchased-gas costs in accordance with procedures authorized by the PSCU and
the PSCW. Purchased-gas costs that are different from those provided for in present rates are accumulated
and recovered or credited through future rate changes. Questar Gas may hedge a portion of its natural gas
supply to mitigate price fluctuations for gas-distribution customers. The regulatory commissions allow
Questar Gas to record periodic mark-to-market adjustments for commodity price derivatives in the
purchased-gas-adjustment account. In addition to purchased-gas adjustments, rate-regulated businesses arepennitted to defer recognition of certain costs, which is different from the accounting treatment required of
nonrate-regulated businesses. See Note 4 to the fmancial statements for a description and comparison of
regulatory assets and liabilities as of December 31 , 2006 and 2005.
Property, Plant and Equipment
Property, plant and equipment is stated at historical cost. Maintenance and repair costs are expensed as
incurred.
Major categories of gas-distribution fixed assets are grouped together and depreciated using the straight-
line method at rates ranging from 1 % to 25% per year. Gains and losses on asset disposals are recorded as
adjustments in accumulated depreciation, Gas-production fixed assets are depreciated using the unit-of-
production method.
The Company has not capitalized future-abandonment costs on a majority of its long-lived gas-distributionassets because the Company does not have a legal obligation to restore the area surrounding abandonedassets. In these cases, the regulatory agencies have opted to leave retired facilities in the ground
undisturbed rather than excavate and dispose of the assets, Average depreciation, depletion andamortization rates for the year ended December 31, were as follows:
Distribution plant
Gas wells, per Mcf
2006 2005 2004
3:4%f9%
$0.$0.$0.11
Effective June 1 2006, Utah customer rates were reduced by $9,7 million per year, primarily to reflectchanges in the Company s depreciation rates, Depreciation expense was approximately $5.3 million lower
for this seven-month period as a result ofthe depreciation rate change.
Impairment of Long-Lived Assets
Properties are evaluated on a specific-asset basis or in groups of similar assets, as applicable. Impairment isindicated when a triggering event occurs and the sum of the estimated undiscounted future net cash flows
of an evaluated asset is less than the asset's carrying value, If impairment is indicated, fair value iscalculated using a discounted-cash-flow approach. Cash-flow estimates require forecasts and assumptionsfor many years into the future for a variety of factors, including commodity prices and operating costs.
Page 123
Goodwill and Other Intangible Assets
Goodwill represents the excess of the amount paid over the fair value of net assets acquired ina businesscombination and is not subject to amortization. Goodwill is tested for impairment at a minimum of once a
year or when a triggering event occurs, If a triggering event occurs, the undiscounted net cash flows of the
intangible asset or entity to which the goodwill relates are evaluated. Impairment is indicated if
undiscounted cash flows are less than the carrying value of the assets. The amount of the impairment is
measured using a discounted-cash-flow model considering future revenues, operating costs, a risk-adjusteddiscount rate and other factors.
Capitalized Interest and Allowance for Funds Used During Construction
The Company capitalizes the cost of capital during the construction period of plant and equipment using a
method required by regulatory authorities. Capitalized fmancing costs, called allowance for funds used
during construction (AFUDC), consist of debt and equity portions. The debt portion of AFUDC is recorded
as a reduction of interest costs and the equity portion is recorded in other income. Interest expense was
reduced by $0.4 million in 2006 and $0, I million in 2005 and 2004. No amounts of equity AFUDC were
recorded in the three years ended December 3 1 2006.
Derivative Instruments
The Company follows the accounting provisions of SF AS 133, as amended
, "
Accounting for DerivativeInstruments and Hedging Activities." Derivative instruments are recorded at fair value. Changes in fair
value, which result in gains or losses, are reported in the purchased-gas adjustment account. The Companyhas a number of contracts that are derivative instruments that are specifically excluded from the provisions
of SF AS 133 because they are nonnal sales and purchase transactions.
Credit Risk
The Company s primary market area is located in Utah, southwestern Wyoming and southeastern Idaho,Exposure to credit risk may be impacted by the concentration of customers ill this area due to changes in
economic or other conditions. Customers include individuals and numerous industries that may be affected
differently by changing conditions. Management believes that its credit review procedures, loss reservescustomer deposits and collection procedures have adequately provided for usual and customary credit
related losses. Loss reserves are periodically reviewed for adequacy and may be established on a specific
case basis, Questar Gas estimates bad-debt expense as a percentage of general-service revenues with
periodic adjustments, Uncollected accounts are generally written off six months after gas is delivered and
interest is no longer accrued.
Bad debt expense amounted to $4,8 million in 2006, $8.6 million in 2005 and $6,2 million in 2004. Theallowance for bad debt expenses was $3. I million and $4. I million at December 3 1 2006, and 2005respectively.
Income Taxes
Questar and its subsidiaries file a consolidated federal income tax return. Questar Gas accounts for income
tax expense on a separate return basis and records tax benefits as they are generated. Deferred income taxes
have been provided for the temporary timing differences arising between the book and tax carrying
amounts of assets and liabilities. These differences create taxable or tax deductible amounts for future
periods. Questar Gas uses the deferral method to account for investment tax credits as required by
regulatory commissions.
Recent Accounting Developments
In July 2006, the Financial Accounting Standards Board (F ASB) issued F ASB Interpretation 48
Accounting for Uncertainty in Income Taxes" (FIN 48). The interpretation applies to all tax positions
related to income taxes subject to FASB Statement 109 "Accounting for Income Taxes." FIN 48 clarifiesthe accounting for uncertainty in income taxes by prescribing a minimum recognition threshold for a tax
position to be reflected in the financial statements, Ifrecognized, the tax benefit is measured as the largestamount of tax benefit that is more-likely-than-not to be realized upon ultimate settlement. FIN 48 is
effective for Questar beginning January 1 2007, The Company does not expect the provisions of FIN 48
will have a significant impact on its financial statements,
In September 2006, the F ASB issued SF AS 157 "Fair Value Measures , SF AS 157 derIDes fair valueestablishes a framework for measuring fair value and expands disclosures about fair-value measures
Page 123a
required under other accounting pronouncements, butdoes not change existing guidance as to whether or
not an instrument is carried at fair value. SF AS 157 is effective for fiscal years beginning after November
, 2007, The Company is continuing to assess the impact of SF AS 157,
In December 2006, the F ASB issued an exposure draft titled "Disclosures about Derivative Instruments and
Hedging Activities." The proposed statement would amend and expand the disclosure requirements in
SF AS 133 "Accounting for Derivative Instruments and Hedging Activities , and other related accounting
pronouncements. The proposed expanded disclosure is intended to provide enhanced understanding of (i)
how and why an entity uses derivative instruments; (ii) how derivative instruments and related hedged
items are accounted for under SF AS 133 and its related interpretations; and (iii) how derivative instruments
affect an entity's fmancial position, results of operations, and cash flows. The proposed effective date
would be for fiscal years and interim periods ending after December 15, 2007. The Company has not
evaluated the potential effect of the proposed disclosures.
In February 2007, the FASB issued SFAS 159 "The Fair Value Option for Financial Assets and Financial
Liabilities," SF AS 159 permits the measurement of certain fmancial instruments at fair value. Entities may
choose to measure eligible items at fair value at specified election dates, reporting unrealized gains and
losses on such items at each subsequent reporting period, SFAS 159 is effective for fiscal years beginning
after November 15, 2007, The Company has not evaluated the potential impact of the fair value option.
Reclassifications
Certain reclassifications were made to prior year financial statements to conform with the 2006
presentation of current portion of defelTed income taxes and regulatory assets and liabilities.
Note 2 - Share-Based Compensation
Prior to January 1 2006, Questar and the Company accounted for share-based compensation using the
intrinsic value method prescribed by Accounting Principles Board Opinion (APBO) 25 "Accounting for
Stock Issued to Employees" and related interpretations. No compensation cost was recorded for stock
options because the exercise price equaled the market price on the date of grant The granting of restricted
shares results in recognition of compensation cost. Restricted shares are valued at the grant-date market
price and amortized to expense over the vesting period. Questar Gas uses an accelerated method in
recognizing share-based compensation costs with graded-vesting periods,
Questar and the Company implemented SFAS l23R effective January 1, 2006, and chose the modified
prospective phase-in method of accounting by SFAS 123R, The modified prospective phase-in method
requires recognition of compensation costs for all share-based payments granted, modified or settled after
January 1 2006, as well as for any awards that were granted prior to the implementation date for which the
required service has not yet been performed. As a result of adopting SF AS 123R, the Company s income
before income taxes and net income for the year ended December 31, 2006, were approximately $0,
million lower than if the Company had continued to account for share~based compensation under APBO
25, The pro forma share-based compensation expense impact for the year of2005 was approximately $0.3
million. Share-based compensation associated with un vested restricted shares amounted to $0.6 million for
the year ended December 31 , 2006.
Transactions involving stock options granted to employees of Questar Gas under the L TSIP are
summarized below:
B alance atJariuaryl;1PO6
Exercised
Erp,plo eetransfer
Balance at December 31, 2006
Outstanding
Options
651 64'6
(182 176)
(4;~Q~)
464,970
Price Range
. '
$1'5f00-'-$2JUH
15.00- 28,
27.11
$15.00 - $28.
Weighted-
average Price
, " ..,
$~:S;(;)6 '
27,
:27.11
$25.
Page 123b
The number ofunvested stock options held by Questar Gas employees decreased by 61 250 shares in
2006,
Outstanding and Exercisable Options
Weighted-
average
remaining
term in
years
2;/ '
4.3
':'5 5;:
Range of exercise
, "
~~i1.()~t
19.13 - 22,
, ,
~$~7-!it~~$z8.01'
Number
outstanding at
Dec. 31
2006
" ,
4p;7'9~
, 88 938
j~9t~34.
464,970
Weighted-
average
exercise
rice
$1:$.:~9
22.48
~'2739
$25.
Most restricted share grants vest in equal installments over a three to five year period from the grant
date, The weighted-average vesting period of unvested restricted shares at December 31, 2006, was 16months. Transactions involving restricted shares in the Long-Term Stock Incentive Plan (L TSIP) in
2006 are summarized below:
13aJanceat January 1, 2006
Granted
bistiib#t~(!i
Balance at December 31, 2006
Outstanding
tions
, 21 700
3?0
~7J)'
379
Price Range
$34:90- $51.00
73.
34,.
$34.90 - $73.
Weighted-
average Price
$42ig4
73.
. 34.
$54.
Note 3 - Asset Retirement Obligations (ARO)
Questar Gas recognizes ARO in accordance with SF AS 143 "Accounting for Asset Retirement
Obligations." SFAS 143 addresses the fmancial accounting and reporting of the fair value oflegal
obligations associated with the retirement of tangible long-lived assets. The provisions of SF AS 143 donot apply to a majority of the Company s long-lived distribution system assets due to a lack of a legal
obligation to retire the assets. Changes in asset retirement obligations were as follows:
)\i:~.'lia~itifY;~~J~~~f,
Liabilities incUlTed
b&ahg~':4V:~(tP.a-y~jl~tD~xV~)(~io
' ";; :
Accretion
AJ~;QJi~J:jiljW;4t;Q~~~Pi1?~tit, .;
2006 2005
. .;.
i:.
~~~
~li
~;~,
:~:'B;:V
0.3
JL.
~';~;' .
~$~;6
Wexpro activities are governed by a long-standing agreement with the states of Utah and Wyoming
(the Wexpro Agreement). The accounting treatment of reclamation activities associated with ARO for
properties administered under the Wexpro Agreement is spelled out in a guideline letter between
Wexpro and the Utah DivisionofPublic Utilities and the staff of the PSCW. Accordingly, Wexpro
collects from Questar Gas and deposits in trust funds related to estimated ARO costs. The funds are
used to satisfy retirement obligations as the properties are abandoned, At December 31 2006approximately $5.8 million was held in this trust invested primarily in a short-term bond index fund.
Note 4 - Other Regulatory Assets and Liabilities
The Company has other regulatory assets and liabilities in addition to purchased-gas adjustments. The
Company recovers these costs but does not generally receive a return on these assets,
Page 123c
Following is a description of the Company s regulatory assets:
Gains and losses on the reacquisition of debt are deferred and amortized as interest expense over
the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-
average life of approximately II years as of December 31 , 2006.
Questar Gas has a regulatory asset that represents future expenses related to abandonment of
Wexpro operated gas and oil wells. The regulatory asset will be reduced over an 18 year period
following an amortization schedule that commenced January 1 2003, or as cash is paid to plug
and abandon wells.
Production taxes on cost-of-service gas production are recorded when the gas is produced and
recovered from customers when taxes are paid, generally within 12 months,
The costs of complying with pipeline-integrity regulations are recovered in rates subject to a
PSCU order effective June 1 2006, Costs incurred prior to June 2006 were defen-ed and will now
be recovered over a tl1fee-year period. Actual current costs in excess of $1.4 million annually will
be deferred and recovered in future rates.
Regulatory liabilities are included with other long-term liabilities in the balance sheets, A list of regulatory
assets and liabilities follows:
December 312006 2005
(in millions)
Regulatory assets
Cost of reacquired debt
Asset retiIem~rit obligations - cost ~of-service gas wells
Deferred production taxes
P i p~ I in e"w- tegri !yeos ts
Total
$8.
$23.
R, egu la to iyliabiltt ies
Income taxestefundable to,customers
Conservation enabling tariff
;~~rtia#d~i4~mClD,'!g~ll1ent "
Total
December 312006 2005
(in millions)
$9.
$22.
$2.1
Note 5 - Debt
$2.
Questar makes loans to Questar Gas under a short-term borrowing arrangement. Short-term notes payable
to Questar totaled $13,2 million at December 31, 2006 with an interest rate of 5 .44% and $77.4 million at
December 31 , 2005 with an interest rate of 4.42%,
Questar Gas long-term debt consists of$273.0 million of medium-term notes with interest rates ranging
from 5,00% to 7,58% due 2007 to 2018 and a $50.0 million bank term loan at 5.62% due 2010. Long-term
debt maturities are $10,0 million in 2007, $43,0 million in 2008, $50,0 million in 2010 and $2,0 million in
20 II. All notes are unsecured obligations and rank equally with all other unsecured liabilities, At
December 31 2006, Questar Gas could pay dividends of $130,0 million without violating the terms of its
debt covenants,
On December 15, 2005, Questar Gas borrowed $50,0 million from a bank under a five-year term loan
agreement. The loan s interest rate varies periodically with changes in short-term interest rates available in
the credit markets.
Page 123d
Cash paid for interest was $21.9 million in 2006, $19.1 million in 2005 and $19.5 million in 2004.
Note 6 - Financial Instruments and Risk Management
The carrying value and estimated fair values of the Company s fmancial instruments were as follows:
Finane/a/assets
Cash and cash equivalents
Filianciallillbilities
Notes payable to Questar
Lorig-teim debt
December 31, 2006 December 31 , 2005Carrying Estimated Cal1)'ing EstimatedValue Fair Value Value Fair Value
(in millions)
13.13.77.4 77,
373.32?O J2~.33'6.
The Company used the following methods and assumptions in estimating fair values.
Cash and eash equivalents and short-term debt - the canying amount approximates fair value.
Long-term debt - the canying amount of variable-rate long-term debt approximates fair value. The fair
value of fixed-rate debt is based on the discounted present value of cash flows using the Company s currentborrowing rates.
Note 7 - Income Taxes
Details of Questar Gas s income tax expense and deferred income taxes were as follows:
Federal
Current
, Deferred
State
CUrrent
Deferred
I)e(errediDve~tment, t~xcf~Pits
Year Ended December 312006 2005 2004
(in millions)
$ 32.
(13.8) ,
$ 15.4 ($11.5)
30.
4;4
(1.
$ 21.
2.4
0.1
COA)
$ 21.3
(1.6)
(OA)
$19.
The difference between the statutory federal income tax rate and the Company s effective income tax rateis explained as follows:
Fecleraiin6djnetaxes statu#i;ryfiiteIncrease (decrease) as a result of:
St~te inc'omi trows, l1et oU~'derlll income
tax benefit
Amprtizeinvestment-tax credits related to
rate-regulated assets
Deferred taxesreTatedtoregulatedassets. for which
deferred taxes were not provided in prior yearsOther
Effective income tax rate
Year Ended December 312006 2005 2004
, 3'$Jjo/~
' '
3~L0% 35JJ%
1.4
(0.(0,(O.
1.6
1.4
37.37.3S,
Page 123e
Significant components of the Company s deferred income taxes were as follows:
i\J.~f~~~~'iti.9~i~'~~xe~~li~~J~ltW"
" .' ,- '
h' ,Property, plant and equipment $119.7 $119.
' ::::~Rif4r!ii~~;'%~~~~~i~;!ii'f.~t~rm~,~n~~ti&h;~;~$t~:'
,:;. ~:
;oj!
~~;:, :y ',.
A~3,L~,&i;;~;;'r?" . '
~~) ;:,.
:i~;,:'i ;;~'i%~~iI:Q~~,tf~0It1i%~~~Ji~n~,Total deferred income taxes $118.7 $118.
December 312006 2005
~ill~?~.
December 312006 2005
(in millions)
Deferred inc?me taxes - curren~ (asset) liability
kfit~Ji~~~~i~$"~~&tfu~~(:~i~::;
, ,
Other
)G'f~,
\~ '
$1.(1.0)
;;);lLJt~j'?Z:~lci1'
~ ;
Questar Gas paid cash for income taxes of$31 million in 2006, $13.7 million in 2005 and received a $2.
million refund in 2004.
Note 8 - Rate Regulation
Questar Gas Rate Changes
In October 2006, the PSCU approved a pilot program for a CET retroactive to January 1 , 2006, to promote
energy conservation. Under the Company s prior rate structure, declining usage lowered revenues and
increasing usage per customer raised revenues. Under the CET, Questar Gas non-gas revenues are
decoupled from the volume of gas used by customers. The tariff specifies a margin per customer for each
month with differences to be deferred and recovered from customers or refunded to customers through
periodic rate adjustments. These adjustments will be limited to one percent oftotal revenues for the fIi'st
year. The program will be reviewed after one year. Questar Gas recorded a $1.7 million revenue reduction
in 2006 to recognize the impact of implementing the CET.
Effective June 1 2006, the PSCU approved a settlement of other issues and ordered Questar Gas to reduce
the nongas portion of customer rates by $9.7 million to reflect a reduction in depreciation rates, a change in
capital structure, and recovery of pipeline integrity costs.
In January 2007, the PSCU approved a "demand-side management" program (DSM) effective January 1
2007. Under the DSM, Questar Gas will encourage the conservation of natural gas through advertising,
rebates for efficient homes and appliances, and energy audits, The costs of the DSM will be deferred and
recovered from customers through periodic rate adjustments.
State Rate Regulation
Questar Gas files periodic applications with the PSCU and PSCW requesting permission to reflect
annualized gas-cost increases or decreases in its rates. Gas costs are passed on to customers on a dollar-for-
dollar basis with no markup,
Gas-Processing Dispute
In October 2005, Questar Gas, the Utah Division of Public Utilities and the Committee of Consumer
Services submitted a stipulation to the PSCU to resolve issues related to cost recovery of gas processing
activities, The PSCU issued an order on January 6, 2006, approving the stipulation beginning on February
, 2005. The stipulation provides for the recovery of 90% of the non fuel cost of service for processing and
100% of the fuel costs up to 360 Mdth per year. Half of the third-party processing revenues are shared with
customers after the fIrst $004 million. In the foUttl). quarter of2005 Questar Gas reduced expenses for
Page 12Jf
recovery of gas costs by $4,9 million for the period from February 1 2005 to December 31, 2005. This
settlement was appealed to the Utah Supreme Court by a group of individuals, The Utah Supreme Court
heard the case in February 2007. An order is anticipated later in the year.
Note 9 - Commitments and Contingencies
Questar Gas is involved in various commercial and regulatory claims and litigation and other legal
proceedings that arise in the ordinary course of its business. Management does not believe any of them will
have a material adverse effect on the Company s financial position. An accrual is recorded for a loss
contingency when its OCCUITence is probable and damages can be reasonably estimated based on the
anticipated most likely outcome. Some of the claims involve highly complex issues relating to liability,
damages and other matters subject to substantial uncertainties and, therefore, the probability ofliability
an estimate of loss cannot be reasonably determined.
Commitments
Historically, 40 to 50% of Questar Gas gas-supply portfolio has been provided from cost-of-service
reserves. In 2006, the remainder of the gas supply was purchased from 14 suppliers using index-based or
fixed-price contracts. Questar Gas has commitments to purchase gas for $170 million in 2007, $61 million
in 2008, $35 million in 2009, $17 million in 2010 and $9 million in 2011. Generally, at the conclusion of
the heating season and after a bid process, new agreements for the next heating season are put in place.
Questar Gas bought natural gas under purchase agreements amounting to $429.5 million in 2006, $447.4
million in 2005 and $336 million in 2004. In addition, Questar Gas makes use of various storage
aITangements to meet peak-gas demand during certain times of the heating season.
Questar Gas has third-party transportation commitments requiring yearly payments of$5.million through
2018.
Questar Gas has contracted for transportation and storage services with Questar Pipeline, Annual payments
and the years covered are as follows:
ZO07 '
2008
~0:~ix:
2010
)011.
After 20 II
(in millions)
" "
$1l(tU,
69.
'ft5~:,~.
69.
\~;$jJ9
$410.
Note 10 - Employee Benefits
Pension Plan
Questar Gas employees are covered by Questar s defined-benefit pension plan, Benefits are generally based
on the employee s age at retirement, years of service and highest earnings in a consecutive 72 semimonthly
pay period interval during the 10 years preceding retirement. Questar is subject to and complies with
minimum required and maximum allowed annual contribution levels mandated by the Employee
Retirement Income Security Act and by the Internal Revenue Code. Subject to the above limitations
Questar intends to fund the qualified pension plan approximately equal to the yearly expense. Questar also
has a nonqualified pension plan that covers certain management employees in addition to the qualified
pension plan, The nonqualified pension plan provides for defined-benefit payments upon retirement of the
management employee, or to the spouse upon death of the management employee above the benefit limit
derIDed by the Internal Revenue Service for the qualified plan. The nonqualified pension plan is unfunded.
Claims are paid from the Company s general funds, Qualified pension plan assets consist principally
equity securities and corporate and U,S. government debt obligations, A third-party consultant calculates
the pension plan projected benefit obligation, Pension expense was $11.6 million in 2006, $12,5 million in
2005 and $6.6 million in 2004.
Questar Gas portion of plan assets and benefit obligations can not be determined because the plan assets are
not segregated or restricted to meet the Company s pension obligations, If the Company were to withdraw
from the pension plan, the pension obligation for the Company s employees would be retained by the
Page 123g
pension plan. At December 31, 2006 and 2005, Questar s projected benefit obligation exceeded the fair
value of plan assets.
Postretirement Benefits Other Than Pensions
Eligible Questar Gas employees participate in Questar s postretirement benefits other than pensions plan.
Postretirement health care benefits and life insurance are provided only to employees hired before January
, 1997. The Company pays a portion of the costs of health care benefits, based on an employee s years of
service, and generally limits payments to 170% of the 1992 contribution. Plan assets consist of equity
securities and corporate and u.s. government debt obligations. A third party consultant calculates the
projected benefit obligation. The cost of postretirement benefits other than pensions was $2.9 million in
2006, $2.8 million in 2005 and $1,1 million in 2004,
The Company s portion of plan assets and benefit obligations related to postretirement medical and life
insurance benefits can not be determined because the plan assets are not segregated or restricted to meet the
Company s obligations, At December 31 2006 and 2005, Questar s accumulated benefit obligation
exceeded the fair value of plan assets,
Employee Investment Plan
Questar Gas participates in Questar s Employee Investment Plan (EIP). The EIP allows eligible employees
to purchase shares of Questar common stock or other investments through payroll deduction at the current
fair market value on the transaction date. The Company cUITently contributes an overall match of 80%
employees' pre-tax purchases up to a maximum of6% of their qualifying earnings. In addition, the
Company contributes $200 annually to the EIP for each eligible employee. Beginning in 2005 , the ElP
trustee purchased Questar shares on the open market as cash contributions are received, The Company
expense equaled its matching contribution of $3.3 million, $3.1 million and $1.6 million for the years
ended December 31 , 2006, 2005 and 2004, respectively.
Note 11- Questar Regulated Services Merger
Questar Gas prior parent company, Questar Regulated Services Company (Regulated Services), merged
effective March 31, 2005 with Questar Gas. Questar Gas was the surviving company. Regulated Services
was a holding company that provided management, engineering and accounting services for its wholly-
owned subsidiaries, Questar Pipeline and Questar Gas, Regulated Services was a wholly-owned subsidiary
of Questar. Questar Pipeline and Questar Gas became wholly-owned subsidiaries of Questar as a result of
the merger.
Note 12 - Related Party Transactions
Questar Gas provided administrative, technical, accounting, legal, data-processing and communication
services plus regulatory support to Questar Pipeline at a cost of $17.8 million in 2006 and $20.5 million in
2005. Prior to January 1 2005, Regulated Services provided administrative, technical, legal and accounting
support to Questar Gas amounting to $35,9 million in 2004. Questar Gas also provided services to other
affiliated companies amounting to $7.5 million in 2006 and $5,8 in 2005. The majority of these costs are
allocated and included in operating and maintenance expenses, The allocation methods, are based on the
specific nature of the charges. Management believes that the allocation methods are reasonable,
Questar Gas has reserved transportation capacity on Questar Pipeline for 95 I ,000 dth per day including
000 dth per day of winter peaking service, Questar Gas periodically releases excess capacity and
receives a credit from Questar Pipeline for the released capacity revenues and a portion of Questar
Pipeline s interruptible transportation revenues. Questar Gas paid for transportation, storage and processing
services provided by Questar Pipeline and a subsidiary amounting to $75,8 million in 2006, $76,7 million
in 2005 and $80.3 million in 2004, which included demand charges. The costs of these services were
included in cost of gas sold.
Wexpro, an affiliated company, manages and develops certain properties owned by Questar Gas under the
terms of the Wexpro Agreement. The Company receives a portion ofWexpro s income from oil operations
after recovery ofWexpro s operating expenses and a return on investment. This amount, which is included
in revenues and reduces amounts billed to gas distribution customers, was $5,5 million in 2006, $6. I
million in 2005 and $4.7 million in 2004. The amounts that QuestarGas paid Wexpro for the operation of
Page 123h
gas properties owned by Questar Gas were $150.1 million in 2006, $132,0 million in 2005 and $115.4
million in 2004. Questar Gas reports these amounts in cost of gas sold.
Also included in cost of gas sold are amounts paid to Questar Gas Management for gathering gas. These
costs amounted to $14.7 million in 2006, $13.1 million in 2005 and $11.6 million in 2004. The Company
purchased gas ITom other affiliates amounting to $11.0 million in 2006, $13,9 million in 2005 and $4.4
million in 2004,
Questar Gas has a lease with an affiliate for space in an office building located in Salt Lake City, Utah,
Rent expense was $2.2 million in 2006 and $1.4 million in 2005 and 2004. The lease payment will be $2.4
million in 2007, $2.5 million in 2008 and $2.6 million in 2009 through 2011.
An affiliated company, Questar InfoComm Inc., provided data-processing and communication services (IT)
to Questar Gas. The Company paid Questar InfoComm $0.5 million in 2005 and $5.5 million in 2004, The
Company also paid $1.7 million to Questar InfoComm for software development in 2004. Questar Gas
capitalized these costs.
Questar charged Questar Gas for certain administrative functions amounting to $7,7 million in 2006, $8.
million in 2005 and $6.9 million in 2004 including $0,8 million for IT charges. These costs are included in
operating and maintenance expenses and are allocated based on each affiliated company s proportional
share of revenues less product costs; property, plant and equipment; and labor costs. Management believes
that the allocation method is reasonable.
Questar Gas borrowed cash from Questar and incurred interest expense of$O.4 million in 2006, $1.7million in 2005 and $0.7 million in 2004.
Note 13 - Supplemental Gas and Oil Information (Unaudited)
The following information is provided with respect to estimated natural gas reserves, which are manageddeveloped and delivered by Wexpro at cost of service pursuant to the Wexpro Agreement, and Wexpro
proved oil reserves, Net income ITom Wexpro s oil properties remaining after recovery of expenses and
Wexpro s return on investment under the Wexpro Agreement is divided between Wexpro and Questar Gas.
Questar Gas s portion of the net income ITom oil properties reduces gas supply costs. Questar Gas has not
incurred any cost for gas and oil producing activities for the three years ended December 31 2006.Infonnation on the standardized measure of future net cash flows has not been included because the
operations of and return on investment for the properties are regulated by the Wexpro Agreement. See Note
12 for amounts paid by Questar Gas to Wexpro pursuant to the Wexpro Agreement.
Since the gas reserves operated by Wexpro are delivered to Questar Gas at cost-of-service, SEC guidelines
with respect to standard economic assumptions are not applicable. The SEC anticipated this potential
difficulty and provides that companies may give appropriate recognition to differences arising because of
the effect of the ratemaking process. Accordingly, Wexpro uses a minimum-producing rate or maximum
well-life limit to detennine the ultimate quantity of reserves attributable to each well. All gas and oil
reserves reported are located in the United States. The Company does not have any long-tenn supplycontracts with foreign governments or reserves of equity investees, The following estimates were made by
the Wexpro s reservoir engineers:
Page J 23
p,koieii~e~~'rUqS
Bal~nce at January 1, 2004
:R~~Mqns,
Previous estimates
. Pi11~G/ale i11creased-deilsity(a)
Extensions and discoveries
'Por!'i:dUi'itlpn' ,
Balance at December 31, 2004
~iviSions" :
Previous estimates
~!:ll~Cl*l~ in~ re~sed cci ens ity
Extensions and discoveries
, Procluctipn
Balance at December 31 , 2005
Revisions-
Previous estimates
Natural Gas
(Bcf)
434.4
112:7
lS,
, '
(3~;;~)
531,
(30.
, 7;8-,
29.
(4;9;9)
497.
Pinedale incre('ls~dcdensity
Extensions and discoveries
J?rQf.!~citl()n '
Balance at December 31, 2006
22.
10€LO
39,
" (J~;~) "
620.
Proved-Developed Reserves
" B.aliwce.at J~~ llaty '
, .
2iO 04
Balance at December 31, 2004
Balance at December 31, 2005
Balance at December 31 2006
4Q(j~1'
409.
406:6'
440.
Oil and NGL
(MMbbIJ
0;9,
0.1
(0;4
(0.
(OA)
(0,
(Qo4)
4.4
3;3
3.2
3.1
Natural Gas
Equivalents
(Bcfe)
455.
US3
lS.
41 ~3)
556.3
(32.
30.
, (4~.4)
520.
21.5
104.
41.3
40;9)
647.
42'6.1
42S.4
425.2
458.
(a) The area approved by the Wyoming Oil and Gas Conservation Commission for 10-acre-densitydrilling of Lance Pool wells corresponds to the estimated productive limits of the Company s core acreagein the field. The Company will continue to disclose future revisions to proved reserves associated with
Pinedale increased-density drilling separately.
Page 123j
This Report Is:
(I) lliJ An Original
QUEST AR GAS COMPANY (2) A Resubmission
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION
Item
Name of Respondent
Line
No,(a)
UTILITY PLANT
In Service
Plant in Service (Classified)
Property Under Capital Leases
Plant Purchased or Sold
Completed Construction not Classified
Experimental Plant Unclassified
TOTAL (Enter Total of lines 3 thru 7)
Leased to Others
Held for Future Use
Construction Work in Progress
Acquisition Adjustments
TOTAL Utility Plant (Enter Total of lines 8 thru 12)
Accum. Provo for Depr., Amort., & DepL
Net Utility Plant (Enter Total of line 13 less 14)
DETAIL OF ACCUMULATED PROVISIONS FOR
DEPRECIATION, AMORTIZATION AND DEPLETION
In Service
Depreciation
Amort. and DepL of Producing Natural Gas Land and Land Rights
Amort, of Underground Storage Land and Land Rights
Amort. of Other Utility Plant
TOTAL in Service (Enter Total oflines 18 thru 21)
Leased to Others
Depreciation
Amortization and Depletion
TOTAL Leased to Others (Enter Total of lines 24 and 25)
Held for Future Use
Depreciation
Amortization
TOTAL Held for Future Use (Enter Total of lines 28 and 29)
Abandonment of Leases (Natural Gas)
Amort, of Plant Acquisition Adj.
TOTAL Accumulated Provisions (Should agree with line 14 above)
(Enter Total of lines 22, 26, 30, 31 and 32)
FERC FORM NO.2 (12-96)Page 200
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
Total Electric
385 862 012
586 483
400 448,495
037
554 697
644 450
423 652 679
(597 958 748)
825,693 931
992 000
597 958 748 N/A
Name of Respondent This Report Is:
(1) !Xl An OriginalQUEST AR GAS COMPANY (2) 0 A Resubmission
SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS
FOR DEPRECIATION, AMORTIZATION AND DEPLETION (Continued)
Other (Specify) Other (Specify) Other (Specify)
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
Gas
597 958 748 N/A N/A N/A
Common
Line
No.
N/A
385 862 012
586,483
400 448,495
037
554 697
644 450
1,423 652 679
(597 958 748)
825 693 931
992 000
FERC FORM NO.2 (12-96)Page 201 Next Page is 204
Name of Respondent This Report Is:Date of Report Year of Report
(1)An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2)A Resubmission Dec. 31, 2006GAS PLANT IN SERVICE (Accounts 101, 102, 103 and 106)
I, Report below the original cost of gas plant in service in column (c). Also to be included in column (c)according to the prescribed accounts.are entries for reversals of tentative distributions2, In addition to Account 101, Gas Plant in Service of prior year reported in column (b). Likewise, if(Classified), this page and the next include Account 102 the respondent has a significant amount of plant Gas Plant Purchased or Sold; Account 103, Experimental Gas retirements which have not been classified toPlant Unclassified; and Account 106, Completed Construction primary acpounts at the end of the year, include inNot Unclassified-Gas.column (d) a tentative distribution of such3. Include in column (c) or (d), as appropriate retirements, on an estimated basis, with appropriatecorrections of additions and retirements for the current or contra entry to the account for accwnulatedpreceding year.depreciation provision. Include also in column (d)4, Enclose in parentheses credit acljustments of plant reversals of tentative distributions of prior year ofaccounts to indicate the negative effect of such accounts.unclassified retirements. Attach supplemental
5. Classify Account 106 according to prescribed accounts statement showing the account distributions of these
on an estimated basis if necessary, and include the entries tentative classifications in columns (c) and (d),
Balance atLineAccountBeginning of Year AdditionsNo.(a)(b)(c)1. Intangible Plant
301 Organization
302 Franchises and Consents 626303Miscellaneous Intangible Plant
TOTAL Intangible Plant 626
2, Production Plant
Natural Gas Production and Gathering Plant
325.1 Producing Lands
325.2 Producing Leaseholds
325.3 Gas Rights 266 961325.4 Rights-of-Way 362325.5 Other Land and Land Rights
326 Gas Well Structures 663 729327Field Compressor Station Structures 701328Field Meas. and Reg. Sta. Structures 763 405329Other Structures 315 985330Producing Gas Wells-Well Construction 551 619331Producing Gas Wells-Well Equipment 416 299332Field Lines 238 526333Field Compressor Station Equipment 331 990334Field Meas. and Reg. Sta. Equipment 700 274335Drilling and Cleaning Equipment
, 23 336 Purification Equipment 589 321337Other Equipment 174 182338Unsuccessful Exploration & Deve!. Costs
TOTAL Production and Gathering Plant 038 353Products Extraction Plant
340 Land and Land Rights
341 Structures and Improvements
342 Extraction and Refining Equipment
343 Pipe Lines
344 Extracted Products Storage Equipment
345 Compressor Equipment
346 Gas Meas. and Reg, Equipment
347 Other Equipment
TOTAL Products Extraction Plant
TOTAL Nat. Gas Production Plant 038 353Mfd. Gas Prod, Plant (Submit Supp!. Statement)
TOTAL Production Plant 038 353FERC FORM NO.2 (12-96)Page 204
Name of Respondent This Report Is:Date of Report Year of Report
(1)An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2)A ResubmisslOn Dec. 31, 2006GAS PLANT IN SERVICE (Accounts 101 , 102, 103 and 106)(Continued)
including the reversals of the prior years tenta-ments, etc., and show in column (f) only the offset to
tive account distributions of these amounts. Care-the debits or credits distributed in column (f) to
ful observance of the above instructions and the primary account classifications,
texts of Accounts 101 and 106 will avoid serious 7. For Account 399, state the nature and use of plant
omissions of the reported amount of respondent'included in this account and if substantial in amount
plant actually in service at end of year. submit a supplementary statement showing subaccount
6. Show in colwnn (f) reclassifications or trans-classification of such plant confonning to the require-
fers within utility plant accounts, Include also ments of these pages.
in column (f) the additions or reductions ofpri-8. For each amount comprising the reported balance and
mary account classifications arising trom distri-changes in Account 102, state the property purchased orbution of amounts initially recorded in Account 102,sold, name of vendor or purchaser, and date of trans-
In showing the clearance of Account 102, include in action, Ifproposedjoumal entries have been filedcolwnn (e) the amounts with respect to accumulated with the Commission as required by the Unifonn System
provision for depreciation, acquisition ajust-of Accounts give also date of such filing.
Balance atRetirementsAdjustmentsTransfersEnd of Year Line(d)(e)(f)
(g)
No.
69;626 302
303
626
325.1
325.
266 961 325.3
362 325.4
325.5(12 656)651 073 326
701 327
763 405 328
315 985 329(421 232)130 387 330(87 453)328 846 331
238 526 332
331 990 333
700 274 334
335
589 321 336
174 182 337
338(521 341)517 012
340
341
342
343
344
345
346
347
(521 341)517 012
(521 341)517 012FERC FORM NO.2 (12-96)Page 205
Name of Respondent This Report Is:Date of Report Year of Report
(1) X An Original (Mo, ba, Yr)
QUEST AR GAS COMPANY (2)A Resubmission Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101, 102, 103 and 106) (Continued)
Balance at
Line Account Beginning of Year Additions
, No.(a)(b)(c)
3, Natural Gas Storage and Processing Plant
Underground Storage Plant
350.1 Land
350.2 Rights-of-Way
351 Structures and Improvements
352 Wells
352.1 Storage Leaseholds and Rights
352.2 Reservoirs
352.3 Non-recoverable Natural Gas
353 Lines
354 Compressor Station Equipment
355 Measuring and Reg. Equipment
356 Purification Equipment
357 Other Equipment
TOTAL Underground Storage Plant NONE
Other Storage Plant
. 360 Land and Land Rights
361 Structures and Improvements
362 Gas Holders
363 Purification Equipment
363.1 LiquefactionEquipment
363.2 Vaporizing EqUIpment
363.3 Compressor Equipment
363.4 Meas, and Reg. Equipment
363.5 Other Equipment
TOTAL Other Storage Plant NONEBase Load Liquefied Natural Gas Terminating
and Processing Plant
364,1 Land and Land Rights
364.2 Structures and Improvements
364.3 LNG Processing Tenninal Equipment
364.4 LNG Transportation Equipment
364.5 Measuring and Regulating Equipment
364.6 CompresSor Station Equipment
364,7 Communications Equipment
364.8 Other Equipment
TOTAL Base Load Liquefied Natural Gas
Tenninating and Processing Plant
TOTAL Nat. Gas Storage and Proc. Plant
4. Transmission Plant
365.1 Land and Land Rights
365.2 Rights-of-Way
366 Structures and Improvements
367 Mains
368 Compressor Station Equipment
369 Measuring and Reg. Sta, Equipment
370 Communication EqUIpment
371 Other EquiPment
TOTAL Transmission Plant NONE
FERC FORM NO.2 (12-96)Page 206
Name of Respondent This Report Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2)A Resubrnission Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101, 102, 103 and 106) (Continued)
Balance at
Retirements Adjustments Transfers End of Year Line(d)(e)(f)
(g)
No.
350.1
350.
351
352
352.1
352.
352.3
353
354
355
356
357
NONE
360
361
362
363
363.1
363.
363.
363,
363.
NONE
364.
364.
364.3
364.4
364.5
364.
364.
364.
365.1
365,
366
367
368
369
370
371
NONE
FERC FORM NO.2 (12-96)Page 207
Name of Respondent This Report Is:Date of Report Year of Report
(1) IXJ An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2) A Resubmission Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101, 102, 103 and 106) (Continued)
Balance at
Line Account Beginning of Year Additions
No,(a)(b)(c)
5, Distribution Plant
374 Land and Land Rights 690 577 1I8,
375 Structures and Improvements 356 547 450 228376Mains548846928751244
377 Compressor Station Equipment 239 504
378 Meas. and'Reg. Sta. Equip,GeneraI 605 869 392 932379Meas. and Reg. Sta, Equip.City Gate
380 Services 265 484 253 658 935381Meters104643620838420382Meter Installations 186 948 737 010383House Regulators 068 729
384 House Reg. Installations 339 635 219 090100385Industrial Meas. and Reg. Sta. Equipment
101 386 Other Prop. on Customers' Premises
102 387 Other Equipment'521 936 491
103 388 Asset Retire Costs - Dist 445 253
104 TOTAL Distribution Plant 104 429 799 190 4421056. General Plant
106 389 Land and Land Rights 649 643
107 390 Structures and Improvements 683 800 485 565108391Office Furniture and Equipment 179 391 925 489109392Transportation Equipment 729,719 830 388,1I0 393 Stores Equipment 636 970III394Tools, Shop, and Garage Equipment 615 735 464 510112395Laboratory Equipment 524 641 048113396Power Operated Equipment 965 506 5.13,727114397Communication'Equipment 19,182 853 777 3711I5398Miscellaneous Equipment 507 334116Subtotal168675592 004 0981I7399Other Tangible Property 663
1I8 TOTAL General Plant 168 747 255 004 O981I9TOTAL (Accounts 101 and 106)
120 Gas Plant Purchased (See Instr, 8)
121 (Less) Gas Plant Sold (See Instr, 8)
122 Experimental Gas Plant Unclassified
123 TOTAL Gas Plant in Service 363 285 033 194 540 I
FERC FORM NO.2 (12-96)Page 208
Name of Respondent This Report Is:Date of Report Year of Report
(1)IX) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2)D A Resubmission Dec. 31, 2006GAS PLANT IN SERVICE (Accounts 101, 102, 103 and 106) (Continued)
Balance at
Retirements Adjustments Transfers End of Year Line(d)(e)(f)
(g)
No.
(22 357)(47 891)738 420 374(80 895)725 881 375152439)400 599 465 133 376(25 739)967 266,732 377(307 710)(50 853)491 668 730 378
379(673 450)270 469 739 380
110;482 040 381(740)923 218 382
068 729 383(93)558 632 384
385 100
386 101
(140 816)114)106 159)297,338 387 102
445 253 388 103404238)106 159)174 109 845 104
105
649 643 389 106(19 035)925 153 255 390 107(29 385 277)182 502 071 903 175 391 108809621)133 374 (41 584)842 277 392 109(626 325)645 393 110(13 720 140)(13 533)346 571 394 111(422 977)108 712 395 112140153)672 948 440 700 396 113
(11 854 515)(31 253)111 800 186 256 397 114(99 025)323 452 632 398 115(60 077 068)276 762 214 484 122 093 866 116
663 399 117(60 077 068)276 762 214 484 122 165 529 118
119
120
121
122(63 002 647). 276 763 108 325 385 862 012 123
FERC FORM NO.2 (12-96)Page 209
BLANK PAGE
BLANK PAGE
(NEXT PAGES ARE IDAHO SUPPLEMENTARY PAGES)
Name of Respondent This Report Is:Date of Report Year of Report
(1)An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2)A Resubmission Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101 , 102, 103 and 106) IDAHO
1. Report below the original cost of gas plant in service in column (c). Also to be included in column (c)
according to the prescribed accounts,are entries for reversals of tentative distributions
2. In addition to Account 101, Gas Plant in Service of prior year reported in column (b), Likewise, if
(Classified), this page and the next include Account 102 the respondent has a significant amount of plant
Gas Plant Purchased or Sold; Account 103, Experimental Gas retirements which have not been classified to
Plant Unclassified; and Account 106, Completed Construction primary accounts at the end of the year, include in
Not Unclassified-Gas,column (d) a tentative distribution of such
3, Include in column (c) or (d), as appropriate retirements, on an estimated basis, with appropriate
corrections of additions and retirements for the current or contra entry to the account for accumulated
preceding year.depreciation provision, Include also in column (d)
4, Enclose in parentheses credit adjustments of plant reversals of tentative distributions of prior year of
accounts to indicate the negative effect of such accounts.unclassified retirements, Attach supplemental
5, Classify Account 106 according to prescribed accounts statement showing the account distributions of these
on an estimated basis if necessary, and include the entries tentative classifications in columns (c) and (d),
Balance at
Line Account Beginning of Year Additions
No.(a)(b)(c)
L Intangible Plant
301 Organization
302 Franchises and Consents
303 Miscellaneous Intangible Plant
TOTAL Intangible Plant
2, Production Plant
Natural Gas Production and Gathering Plant
325.1 Producing Lands
325,2 Producing Leaseholds
325,3 Gas Rights
325.4 Rights-of-Way
325.5 Other Land and Land Rights
326 Gas Well Structures
327 Field Compressor Station Structures
328 Field Meas. and Reg, Sta, Structures
329 Other Structures
330 Producing Gas Wells-Well Construction
331 Producing Gas Wells-Well Equipment
332 Field Lines
333 Field Compressor Station Equipment
334 Field Meas, and Reg. Sta, Equipment
335 Drilling and Cleaning Equipment
336 Purification Equipment
337 Other Equipment
338 Unsuccessful Exploration & DeveI. Costs
TOTAL Production and Gathering Plant
Products Extraction Plant
340 Land and Land Rights
341 Structures and Improvements
342 Extraction and Refining Equipment
343 Pipe Lines
344 Extracted Products Storage Equipment
345 Compressor Equipment
346 Gas Meas, and Reg, Equipment
347 Other Equipment
TOTAL Products Extraction Plant
TOTAL Nat. Gas Production Plant
Mfd, Gas Prod, Plant (Submit SuppI. Statement)
TOTAL Production Plant
FERC FORM NO.2 (12-96)Page 204
Name of Respondent This Report Is:Date of Report Year of Report
(1)An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2)A Resubmission Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101 102, 103 and 106) (Continued) IDAHO
including the reversals of the prior years tenta-ments, etc" and show in column (f) only the offset to
live account distributions of these amounts, Care-the debits or credits distributed in column (f) to
fut observance of the above instructions and the primary account classifications.
texts of Accounts 101 and 106 will avoid serious 7, For Account 399, state the nature and use of plant
omissions of the reported amount of respondent'included in this account and if substantial in amount
plant actually in service at end of year, submit a supplementary statement showing subaccount
6. Show in column (f) reclassifications or trans-classification of such plant conforming to the require-
fers within utility plant accounts, Include also ments of these pages,
in column (f) the additions or reductions ofpri-8, For each amount comprising the reported balance and
mary account classifications arising from distri-changes in Account 102, state the property purchased or
bution of amounts initially recorded in Account 102,sold, name of vendor or purchaser, and date of trans-
In showing the clearance of Account 102, include in action, If proposed journal entries have been filed
column (e) the amounts with respect to accumulated with the Commission as required by the Uniform System
provision for depreciation, acquisition ajust-of Accounts, give also date of such filing,
Balance at
Retirements Adjustments Transfers End of Year Line
(e)(f)
(g)
No,
302
303
325,
325.
325.
325.4
325,
326
327
328
329
330
331
332
333
334
335
336
337
338
340
341
342
343
344
345
346
347
FERC FORM NO.2 (12-96)Page 205
Name of Respondent This Report Is:Date of Report Year of Report
(1) X An Original (Mo, Da, Yr)
QUESTAR GAS COMYANY (2)A ResubmisslOn Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101, 102, 103 and 106) (Continued) IDAHO
Balance at
Line Account Beginning of Year Additions
No,(a)(b)(c)
3, Natural Gas Storage and Processing Plant
Underground Storage Plant
350,1 Land
350,2 Rights-of-Way
351 Structures and Improvements
352 Wells
352.1 Storage Leaseholds and Rights
352,2 Reservoirs
352.3 Non-recoverable Natural Gas
353 Lines
354 Compressor StatIOn Equipment
355 Measuring and Reg. Equipment
356 Purification Equipment
357 Other Equipment
TOTAL Underground Storage Plant NONE
Other Storage Plant
360 Land and Land Rights
361 Structures and Improvements
362 Gas Holders
363 Purification Equipment
363,1 Liquefaction Equipment
363,2 Vaporizing Equipment
363,) Compressor Equipment
363,4 Meas, and Reg, Equipment
363,5 Other Equipment
TOTAL Other Storage Plant NONE
Base Load Liquefied Natural Gas Tenninating
and Processing Plant
364.1 Land and Land Rights
364,2 Structures and Improvements
364,3 LNG Processing Tenninal Equipment
364.4 LNG Transportation Equipment
364.5 Measuring and Regulating Equipment
364.6 Compressor Station Equipment
364,7 Communications Equipment
364,8 Other Equipment
TOTAL Base Load Liquefied Natural Gas
Tenninating and Processing Plant
TOTAL Nat Gas Storage and Proc. Plant
4, Transmission Plant
365,1 Land and Land Rights
365.2 Rights-of-Way
366 Structures and Improvements
367 Mains
368 Compressor Station Equipment
369 Measuring and Reg, Sta. Equipment
370 Communication Equipment
371 Other Equipment
TOTAL Transmission Plant NONE
FERC FORM NO.2 (12-96)Page 206
Name of Respondent This Report Is:Date of Report Year of Report
(I) X An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2)A Resubmission Dec, 31 2006
GAS PLANT IN SERVICE (Accounts 101 , 102, 103 and 106) (Continued) IDAHO
Balance at
Retirements Adjustments Transfers End of Year Line
(d)(e)(f)
(g)
No.
350.1
350,
351
352
352,
352.2
352.
353
354
355
356
357
NONE
360
361
362
363
363,
363.
363,
363.4
363,
NONE
364,
364,
364,
364.4
364.
364,
364.
364,
365,
365,
366
367
368
369
370
371
NONE
FERC FORM NO.2 (12-96)Page 207
Name of Respondent This Report Is:Date of Report Year of Report
(1) (XJ An Original (Mo, Da, Yr)
QUE STAR GAS COMPANY (2) D A Resubmission Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101 , 102, 103 and 106) (Continued) IDAHO
Balance at
Line Account Beginning of Year Additions
No,(a)(b)(c)
5. Distribution Plant
374 Land and Land Rights 999
375 Structures and Improvements 590
376 Mains 901 517 738
377 Compressor Station Equipment
378 Meas, and Reg. Sta, Equip.General 291 970
379 Meas, and Reg, Sta, Equip.City Gate
380 Services 828 207 718
381 Meters 354 279 381
382 Meter Installations 557 497
383 House Regulators 044
384 House Reg. Installations
100 385 Industrial Meas. and Reg, Sta, Equipment
101 386 Other Prop. on Customers' Premises
102 387 Other Equipment
103 TOTAL Distribution Plant 757 425 807
104 6, General Plant
105 389 Land and Land Rights
106 390 Structures and Improvements
107 391 Office Furniture and Equipment
108 392 Transportation Equipment
109 393 Stores Equipment
110 394 Tools, Shop, and Garage Equipment
III 395 Laboratory Equipment
112 396 Power Operated Equipment
113 397 Communication Equipment
114 398 Miscellaneous Equipment
115 Subtotal
116 399 Other Tangible Property
117 TOTAL General Plant
118 TOTAL (Accounts 101 and 106)
119 Gas Plant Purchased (See Instr, 8)
120 (Less) Gas Plant Sold (See Instr. 8)
121 Experimental Gas Plant Unclassified
122 TOTAL Gas Plant in Service 757 425 807
FERC FORM NO.2 (12-96)Page 208
Name of Respondent This Report Is:Date of Report Year of Report
(1)!XI An Original (Mo, Da, Yr)
QUE STAR GAS COMPANY (2)0 A Resubmission Dec. 31, 2006
GAS PLANT IN SERVICE (Accounts 101, 102, 103 and 106) (Continued) IDAHO
Balance at
Retirements Adjustments Transfers End of Year Line
(d)(e)(f)
(g)
No,
(509)490 374
590 375
(157 545)764 710 376
377
277)984 378
379
240)859 686 380
357 660 381
557 497 382
044 383
384
385 100
386 101
387 102
(167 571)648 661 103
104
389 105
390 106
391 107
392 108
393 109
394 110
395 III
396 112
397 113
398 114
115
399 116
117
118
119
120
121
(167 571)648 661 122
FERC FORM NO.2 (12-96)Page 209 Next page is 212
Name of Respondent
Questar Gas Company
This ~ort Is:
(1) lXJAnoriginal
(2) A Resubmisslon
Gas Property and Capacity Leased from Others
1. Report below the information called for concerning gas property and capacity leased from others for gas operations.
2. For all leases in which the average annual/ease payment over the initial term of the lease exceeds $500,000, describe in column(c). if applicable: the property or capacity leased. Designate associated companies with an asterisk in column (b).
Date of Report
(Mo, Da. Yr)Year of Report
Dee 31, 2006
Name of Lessor Description of Lease Lease Payments for
Current Year
(d)
Line
No,(c)(a)(b)
38 '
PAGE NOT APPLICABLE
Total
FERC FORM NO.2 (12-96)Page 212
This ~ort is:
(1) fUAn Original
(2) A Resubmlssion
Gas Property and Capacity Leased to Others
1. For all leases in which the average lease income over the initial term of the lease exceeds $500,000 provide in column (c), a
description of each facility or leased capacity that is classified as gas plant In service, and is leased to others for gas operations.
2. In column (d) provide the lease payments received from others.
3. Designate associated companies with an asterisk in column (b),
Name of Respondent Date of Report
(Mo. Da, Yr)
Year of Report
Dee 31, 2006Questar Gas Company
LIne
No,
Description of LeaseName of Lessor Lease Payments for
Current Year
(d)(a)(b)(e)
22 '
35 -
Total i--C-==
FERC FORM NO.2 (12-96)PeDe 213
Name of Respondent This Report Is:(1) An Original
A Resubmission
GAS PLANT HELD FOR FUTURE USE Account 105
I. Report separately each property held for future use at give in column (a), in addition to other required' information
end of the year having an original cost of$l OOO,OOO or the date that utility use of such property was discontinued
more. Group other items of property held for future use. and the date the original cost was transferred to Account
2. For property having an original cost of$l OOO OOO or 105.
more reviousl used in utili 0 erations, now held for future use
Date Originally
Included in
This Account
UESTAR GAS COMPANY
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Line
No.
Date Expected
to be Used in
Utility Service
Balance at
End of
Year
46 TOTAL
FERC FORM NO.2 (ED. 12-89)
037
5037
Page 214
BLANK PAGE
(Next page is 216)
Name of Respondent This Report Is:Date of Report Year of Report
(1) An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2) A ResubmisslOn Dec. 31, 2006
CONSTRUCTION WORK IN PROGRESS - GAS (Account 107)
L Report below descriptions and balances at end of year Development, and Demonstration (see Account 107 of
of projects in process of construction (107).the Unifonn System of Accounts).
2. Show items relating to "research, development, and 3. Minor projects (less than $1 000 000) may be
demonstration" projects last, under a caption Research grouped.
Estimated
Construction Work Additional
Lim Description of Project in Progress-Gas Cost of
No.(Account 107)Project
(a)(b)(c)
Feeder Lines 559,723 Not available
Main Extensions - New Customers 947,663 Not available
Mains - Other - Replacements 818 826 Not available
Measuring and Regulating 076 983 Not available
Service Lines - New Customers 191 774 Not available
Projects Under 000,000 928 048 Not available
Computer System Software 985 523 Not available
Communication & Telemetry 792 386 Not available
Meters 505 753 Not available
Transportation Equipment 334 499 Not available
TOTAL 141 180
FERC FORM NO.2 (ED. 12-87)Page 216
BLANK PAGE
(Next page is 218)
Name of Respondent This Report Is:
(I) IX! An OriginalUESTAR GAS COMPANY 2 0 A Resubmission
GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE
I, For each construction overhead explain: (a) the nature and 2. Show below the computation of allowance for funds
extent of work, etc., the overhead charges are intended to co- used during construction rates, in accordance with the
ver, (b) the general procedure for determining the amount capi- provisions of Gas Plant Instructions 3 (17) of the
tali zed, (c) the method of distribution to construction jobs U. S, of A,
(d) whether different rates are applied to different types of 3. Where a net-of-tax rate for boITowed funds is used
construction, (e) basis of differentiation in rates for differ- show the appropriate tax effect adjustment to the com-
ent types of construction, and (f) whether the overhead is putations below in a manner that clearly indicates thedirect! or indirect! assi ned. amount of reduction in the oss rate for tax effects.
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
A, Construction overhead charged to construction represents the indirect labor and administrative costs
applicable to construction.
B, A work order is used to accumulate overhead costs, these charges are then cleared to open work
orders,
C. Overhead is charged to construction based on a percentage of monthly cost charged to construction projects, This rate will
vary periodically depending upon the amount of overhead accumulated and the construction activity amount.
D. The calculated rate is applied to all types of construction.
E. None
F, Overhead is directly assigned to each work order.
COMPUT A nON OF ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION RATES
For line I (5), column (d) below, enter the rate granted in the last rate proceeding, If such is not available
use the avera e rate earned durin the recedin three ears,
320 500 000
329 399 584
649 899 584
50,
%,
II.
I. Components of Formula Derived from actual book balances and actual cost rates:Title Amount
199 564
S(m--) + d(_no_m--m__) (1- -----)
D+P+C W
(1- _om) (p(-------------) + C(m_mm___
__))
D+P+C D+P+C
4, Weighted Average Rate Actually Used for the Year:
a. Rate for Borrowed Funds - 5.15%
b, Rate for Other Funds -
FERC FORM NO.2 (12-96)
2, Gross Rate for BoITowed Funds 15%
3, Rate for Other Funds
Page218
Name of Respondent
LineNo. (a)
Balance Beginning of Year
Depreciation Provisions for Year
Char ed to
(403) Depreciation Expense
(413) Exp. of Gas PIt. Leas. to Others
Transportation Expenses-Clearing
Other Clearing Accounts
Other Accounts (S ecify):
This Report Is:
(1) III An OriginalQUESTARGAS COMPANY (2) D AResubmission
ACCUMULATED PROVISION FOR DEPRECIATION OF GAS UTILITY PLANT (Account 108)
I. Explain in a footnote any important adjustments service. If the respondent has a significant amountduring year. of plant retired at year end which has not been
2. Explain in a footnote any difference between the recorded and/or classified to the various reserVe
amount for book cost of plant retired, line 11 , column functional classifications, make preliminary cIos-(c), and that reported for gas plant in service, pages ing entries to tentatively functionalize the book204-209, column (d), excluding retirements of non- cost of the plant retired, In addition, include alldepreciable property. costs included in retirement work in progress at year3. The provisions of Account 108 in the Unifonn System end in the appropriate functional classifications.of Accounts require that retirements of depreciable 4. Show separately interest credits under a sinkinglant be recorded when such lant is removed from fund or similiar method of de reciation accountin .
Section A. Balances and Changes During the YearTotal Gas Plant In(c+d+e) Service
(b)
606 084 065
Dec. 31 2006
Date of Report
(Mo, Da, Yr)
Year of Report
Item
(c)
606 084 065
Gas Plant Held Gas Plant Leased
for Future Use to Others(d) (e)
817 7.74 817,774
928 558 928 558
TOTAL Deprec. Provo for Year
Enter Total of lines 3 thru 8
10 Net Charges for Plant Retired:
11 Book Cost of Plant Retired
12 Cost of Removal
13 Salvage (Credit)14 TOTAL Net Chrgs. for Plant Ret.
Enter Total of lines 11 thru 13
15 Other Debit or Cr. Items (Describe) 116 17 Balance End of Year (Enter Total
of lines 1 9 14 15 and 16 588077 253 588077 253
Section B. Balances at End of Year According to Functional Classifications
18 Productioh-Manufactured Gas
19 Prod. and Gathering-Natural Gas
20 Products Extraction-Natural Gas
21 Underground Gas Storage
22 Other Storage Plant
23 Base Load LNG Tenn. and Proc, Plant
24 Transmission
25 Distribution
26 General
27 TOTAL (Enter Total of lines 18 thru 26)
002 648
589 665
(1,158 203)
002 648
589 665
158 203)
62434 110
680 966
62434110
680 966
382 398 382 398
440 179 114
515 741
588 077 253
440 179 114
515 741
588 077 ,253
I Acquired
2 Loss or Gain
Co. in & out
Rec1ass. & Trans,
Adjustments
FERC FORM NO.2 (12-96)
294 996
268
353 701
Page 219
Name of Respondent This Report Is:Date of Report Year of Report
(1) IX! An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) DA Resubmission Dec. 31 , 2006
GAS STORED (ACCOUNT 117, 164., 164.2 and 164.3)
I. If during the year adjustment was made to the stored gas of withdrawals upon "base stock " or restoration of previous
inventory (such as to colTect cumulative inaccuracies of gas encroachment, including brief particulars of any such account-
measurements), furnish in a footnote an explanation of the ing during the year.
reason for the adjustment, the Mcf and dollar amount of ad-4. If the company has provided accumulated provision for
justment, and account charged or credited,stored gas which may not eventually be fully recovered from
2. Give in a footnote a concise statement of the facts and any storage project, furnish a statement showing: (a) date of
the accounting perfonned with respect to any encroachment Commission authorization of such accumulated provision
of withdrawals during the year, or restoration of previous en-(b) explanation of circumstances requiring such provision
croachment, upon native gas constituting the "gas cushion ( c) basis of provision and factors of calculation, (d) estimated
of any storage reservoir.ultimate accumulated provision accumulation, and (e) a sum-
3. If the company uses a "base stock" in connection with mary showing balance of accumulated provision and entries
its inventory accounting, give a concise statement of the basis during year.
of establishing such "base stock" and the inventory basis and 5. Report pressure base of gas volumes as 14.73 psia at
the accounting perfonned with respect to any encroachment 60 F.
Line Noncurrent Current LNG LNG
No.Description (Account 117 (Account 164.1)(Account 164.(Account 164.Total
(a)(b)(c)(d)(e)(f)
Balance at Beginmng
of Year 526 203 526,203
Gas Delivered to
Storage (contra Account)888 083 888 083
Gas Withdrawn from
Storage (contra Account)266 134 266 134
Other Debits or
Credits (Net)
Balance at End of Year 148,151 148 151
Dth 461 855 461 855
Amount Per Dth 793 793
State basis of segregation of inventory between current and noncurrent portions:
FERC FORM NO.2 (12-96)Page 220
BLANK PAGE
(Next page is 222)
Name of Respondent This Report Is:
(1) III An Original(2) D A Resubmission
INVESTMENTS (Account 123
1. Report below investments in Accounts 123, Investments
in Associated Companies, 124. Other Investments, and 136,
Temporary Cash Investments.
2. Provide a subheading for each account and list there-
under the information called for:
(a) Investment in Securities - List and describe each
security owned, giving name of issuer, date acquired and
date of maturity. For bonds, also give principal amount
date of issue, maturity, and interest rate. For capital
stock (including capital stock of respondent reacquired
under a definite plan for resale pursuant to authorization
bv the Board of Directors and included in Account 124
OUEST AR GAS COMPANY
Line
No.
Description of Investment
(a)
Other Investments - Account 124
FERC FORM NO.2 (12-96)
Temporary Cash Inv. - Account 136
BHF Bank Invstmt 12/31/99
Temporary Cash Inv. - Account 1361
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
124 AND 136)
Other Investments) state number of shares, class, an
series of stock. Minor investments may be grouped
by classes. Investments included in Account 136,
Temporary Cash Investments, also may be grouped
classes.
(b) Investment Advances - Report separately
for each person or company the amounts of loans or
investment advances that are properly includable
in Account 123. Include advances subject to current
repayment in Accounts 145 and 146.
With respect to each advance, show whether the
advance is a note or onen account.
Book Cost at
Beginning of Year
(If book cost is
different from cost
to respondent,give
cost to respondent
in a footnote and
explain difference.
(c)
Purchases
or Additions
During Year
(b)(d)
Page 222
Name of Respondent This Report Is: Date of Report
(l)Ra An Original (Mo. Da, Yr)QUESTAR GAS COMPANY (2) t1 A Resubmission Dec.31 2006
INVESTMENTS (Account 123 124 AND 136) (Continued)
List each note giving date of issuance, maturity date 5. Report in column (h) interest and dividend
and specifying whether note is a renewal. Designate revenues from investments including such revenues
any advances due from officers. directors, stock- from securities disposed of during the year.holders, or employees. 6. In column en r~port for each investment3. Designate with an asterisk in column (b) any disposed of during the year the gain or losssecurities, notes, or accounts that were pledged represented by the difference between cost ofand in a footnote state the name of pledges and the investment (or the other amount at whichpurpose of the pledge. carried in the books of account if different4. If Commission approval was required for any from cost) and the selling price thereof. notadvance made or security acquired, designate such including any dividend or interest adjustmentfact ina footnote and cite name of Commission, includible in column (h).date of authorization and case or docket number.
Book Cost at
End of Year
(If book cost is
different fro cost to
respondent, give cost
to respondent in a
footnote and explain
difference. )
( Q)
Year of Report
Sales or Other
Dispositions
During Year
Principal
Amount or
No. of Shares at
End of Year
Revenues
for
Year
Gain of Loss
from Investment
Disposed of Line
No.
(e)(f)(h)
(j)
FERC FORM NO.2 (12-96)Page 223
Name of Respondent
OUEST AR GAS COMPANY
ThiS port Is: Date of Report(1) An Original (Mo, Da, Yr)
(2) A Resubmission Dec. 31. 2006
INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.
L Report below investments in Accounts 123.1 , In-
vestments in Subsidiary Companies,
2, Provide a subheading for each company and list
thereunder the infonnation called for below, Sub-total by
company and give a total in columns (e), (t), (g) and
(h).
(a) Investment in Securities - List and describe each
security owned, For bonds give also principal amount, date
of issue, maturity, and interest rate,
Line
No.
Description of Investment
(a)
40 TOTAL Cost of Account 123.1 $
FERC FORM NO.2 (12-96)
Year of Report
(b) Investment Advances - Report separately the
amounts ofloans or investment advances which are sub-
ject to repayment, but which are not subject to current settle-
ment With respect to each advance show whether the advance
is a note or open account List each note giving date of issuance
maturity date, and specifying whether note is a renewal.
3. Report separately the equity in undistributed
subsidiary earnings since acquisition. The total in column
(e) should equal the amount entered for Account 418,
Date
Acquired
(b)
Amount of
Date of Investment at
Maturity Beginning of Year(c) (d)
TOTAL NONE
Page 224
Name of Respondent This Report Is:
(l) IKJ An Original
QUESTAR GAS COMPANY (2) DA Resubrnission
INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.
4, For any securities, notes, or accounts that were 7, In Column (h) report for each investment disposed of
pledged, designate such securities, notes, or accounts in during the year, the gain or loss represented by the dif-
a footnote, and state the name of pledgee and purpose of ference between cost of the investment (or the other amountthe pledge. at which carried in the books of account if different ftom cost)5. If Commission approval was required for any advance and the selling price thereof, not including interest adjust-
made or security acquired, designate such fact in a footnote ment includible in column (t).
and give name of Commission, date of authorization, and 8. Report on Line 42, column (a) the total cost of Accountcase or docket number, 123. L
6, Report column (t) interest and dividend revenues from
investments, including such revenues from securities dis-
posed of during the year,
Equity in
Subsidiary
Earnings for Year
(e)
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
Revenues
for Year
(f)
Amount of
Investment at
End of Year
(g)
Gain or Loss
from Investment
Disposed of
(h)
Line
No.
NONE
FERC FORM NO.2 (12-96)Page 225 (Next page is 230)
Name of Respondent This Report Is:Date of Report Year of Report (IDX An Original (Mo, Da, Yr)
I QUESTAR GAS COMPANY A Resubmission Dec. 31. 2006
PREPAYMENTS (Account 165)
1. Report below the particulars (details) on each pi 2, Report all payments for undelivered gas on line 5 and
payment.complete pages 226 to 227 showing particulars (details) for
gas prepavments.
Line Nature of Prepayment Balance at End of
No.Year (In Dollars)
(a)(b)Prepaid Insurance 1.675 809Prepaid Rents
Prepaid Taxes (262-263)
Prepaid Interest
Gas Prepayments (226-227)
Miscellaneous Prepayments:Software Licenses and Maintenance 705 665TOTAL381 474
EXTRAORDINARY PROPERTY LOSSES (Account 182.
Description of Extraordinary WRITTEN OFF DURING
Loss (Include in the desc.YEAR
the date of loss, date of Total Losses Balance atLineCommission authonzation to Amount Recognized Account Amount End ofNo.use Acct.182.1 and period of of Loss During Year Charged Yearamort, (mo, yr, to mo, yr).
(b)(a)(c)(d)(e)(f)
TOTAL
UNRECOVERED PLANT AND REGULATORY STUDY COSTS (182,
Description of Unrecovered WRITTEN OFF DURING
Plant and Regulatory Study YEAR
Costs (Include in the descr.Total Costs Balance atLineof costs, the date of Com-Amount Recognized End ofNo.mission authorization to use of Charges During Year Account Amount YearAccount 182., and period of Charged
amort. (mo, yr, to mo, yr).
(a)(b)(c)(d)(e)(f)
TOTAL
FERC FORM NO.2 (12-96)Page 230
BLANK PAGE
(Next page is 232)
This Report Is: Date of Report
(1)51 An Original (Mo, Da, Yr)
(2)0 A Resubmission
OTHER REGULATORY ASSETS (Account 182.
1. Report below the details called for concerning 3. Minor items (5% of the Balanceat End of Year forother regulatory assets which are created Account 182.3 or amounts less than $250 000through the ratemaking actions of regulatory agencies whichever is less) may be grouped by classes.(and not includable in other amounts). 4. Report separately any "Deferred Regulatory
2. For regulatory assets being amortized, show period of Commission Expenses" that are also reportedamortization in column (a). on pages 350-351 Regulatory Commission Expenses.
CREDITS
Account
Charged
Name of Respondent Year of Report
QUESTAR GAS COMPANY Dec. 31, 2006
Line Description and Purpose ofNo. Other Regulatory Assets
Balance at
Beginmng
of Year
(b)
860 783
Debits
Amount
Balance at
End of Year
(a)
Deferred production tax
SF AS 143
Other Regulatory asset - Pipeline
integrity
10 Demand Side Management Programs
42 TOTAL
(c)
349 835
(d)
234
(e)
926 220
(t)
284 398
575 685 253 349 683 226 029
110 955 229 022 Various 651 606 688 371
214 867 Various 340,461 (1,125 593)
547,423 793 752 267 970 073 205
FERC FORM NO.2 (12-96)Page 232
Name of Respondent This Report Is:Date of Report Year of Report (1) 51 An Original (Mo, Da, Yr)
UEST AR GAS COMPANY 2 D A Resubmission Dee, 31, 2006
MISCELLANEOUS DEFERRED DEBITS Account 186
1. Report below the details called for con-period of amortization in column (a).
ceming miscellaneous deferred debits.3. Minor items (less than $250 000) may be
2. For an deferred debit bein amortized show rou ed b classes.
CREDITS
Description of Miscellaneous Balance at Debits Balance at
Deferred Debits eginning ofYe Account Amount End of Year
No.Charged
Misc. Deferred Debits
Suspense 10,343 558 831 Various 575 736 563)
Misc. Work in Pro ress
DEFERRED REGULATORY
COMM. EXPENSES (SEE
PAGES 350-351
TOTAL 343 558831 575 736
FERC FORM NO.2 (12-96)Page 233
Name of Respondent This Report Is:
(1 ) An Original
QUESTAR GAS COMPANY (2) D A Resubmission
ACCUMULATED DEFERRED INCOME TAXES (Account 190)
I. Report t e infonnation ca led for below concerning the 2. At Other (Specify), include deferrals relating
respondent's accounting for deferred income taxes. to other income and deductions.
3. At lines 4 and 6, add rows as necessary to report all data.
Number the additional rows in sequence 4., 4., etc. and
01,, etc.
Balance at
Beginning
of Year
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
CHANGES DURING YEAR
(a)(b)
Amounts
Debited To
Account 410.
(c)
Amounts
Credited To
Account 411.
(d)
Line
No,
Account Subdivisions
TOTAL Account 190 (Total oflines 5 thru 6,
Classification of TOTAL
Federal Income Tax
10 State Income TaxII Local Income Tax
Account 190
Electric
Gas
Other (Define)
Total (Total of lines 2 thru 4)
Other (Specify)
277 518
277 518
277 518
277,518
FERC FORM NO.2 (12-96)Page 234
Name of Respondent This Report Is:
(l ) An Original
QUESTAR GAS COMPANY (2) 0 A Resubmission
ACCUMULATED DEFERRED INCOME TAXES (Account 190) Continued)
4. If more space is needed, use separate pages as 5. In the space provided below, identify by amountrequired. and classification, significant items for which
deferred taxes are being provided. Indicate
insignificant amounts listed under "Other.
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
CHANGES DURING YEAR ADJUSTMENTS Balance at
Amounts Amounts DEBITS CREDITS End of Year Line
Debited To Credited To Account Account No.
Account 410,Account 411.No.Amount No.Amount
(e)(f)
(g)
(h)(i)(k)
190 741 660 254 240 319 778,859
741 660 240 319 778 859
741 660 240 319 778 859
604 161
137 499
240 319 641 360
137 499
FERC FORM NO.2 (12-96)Page 235 (Next page is 250)
4 ,
Name of Respondent This Report Is: Date of Report Year of Report
(l)~ An Original (Mo Yr)I QUESTAR GAS COMPANY (2) A Resubmission
CAPITAL STOCK (Accounts 201 and 204)
1. Report below the particulars (details) called for con- year and company title) may be reported in column (a)
ceming common and preferred stock at end of year provided the fiscal years for both the IO-K reportdistinguishing separate series of any general class. Show and this report are compatible.separate totals for common and preferred stock. If infonna 2. Entries in column (b) should represent the numbertion to meet the stock exchange reporting requirement out- of shares authorized by the articles of incorporation
lined in column (a) is available from the SEC 10-K Report as amended to end of year.
Fonn filing, a specific reference to the report fonn (i.e.
Dec. 31,2006
Line
No.
Class and Series of Stock and
Name of Stock Exchange
Number
of Shares
Authorized
by Charter
(b)
000,000
(d)
Par
or Stated
Value
Per Share
(c)
Call
Price at
End of Year
(a)
Common - Account 201
FERC FORM NO.2 (12-96)Page 250
Name of Respondent This Report Is: Date of Report Year of Report
(1) An Original (Mo, Da, Yr)QUESTAR GAS COMPANY (2) 0 A Resubmission
CAPITAL STOCK (Accounts 201 and 204) (Continued)
3. Give particulars (details) concerning shares of any 5. State in a footnote if any capital stock which has been
class and series of stock authorized to be issued by a nominally issued is nominally outstanding at end of year.
regulatory commission which have not yet been issue 6. Give particulars (details) in column (a) of any
4. The identification of each class of prefen-ed stock nominally issued capital stock, reacquired stock, or stock
should show the dividend rate and whether the divide in sinking and other funds which is pledged, stating nameare cumulative or noncumulative. of pledgee and purpose of pledge.
Dec. 31, 2006
OUTSTANDING PER
BALANCE SHEET
(Total amount outstanding wlo reduc-
tion for amounts held by respondent)Shares Amount(e) (f)
189 626 22 974 065
HELD BY RESPONDENT
AS REACQUffiED STOCK
(Account 217)Shares Cost
(g)
(h)
None
IN SINKING AND
OTHER FUNDSShares Amount(i)
None
FERC FORM NO.2 (12-96)Page 251
Line
No.
This Report Is:
(1) 'lxT An OriginalOUESTAR GAS COMPANY (2) n A Resubmission
CAPITAL STOCK SUBSCRIBED, CAPITAL STOCK LIABILITY FOR CONVERSION
PREMIUM ON CAPITAL STOCK, AND INSTALLMENTS RECEIVED ON CAPITAL STOCK(Account 207000)
L Show for each of the above accounts the amoUl under Account 203, Common Stock Liability forapplying to each class and series of capital stock. Conversion, or Account 206, Preferred Stock
2. For Account 202, Common Stock Subscribed, an Liability for Conversion, at the end of year.
Account 205, Preferred Stock Subscribed, show the 4. For Premium on Account 207, Capital Stock,
subscription price and the balance due on each clas: designate with an asterisk any amounts repre-at the end of year. senting the excess of consideration received
3, Describe in a footnote the agreement and trans- over stated values of stocks without par value.
actions under which a conversion liabilitv existedLine Name of Account and Description ofItemNo. '
1 Premium on Capital Stock - Account 207000
2 Common Stock
3 Excess of consideration received over par value
1955 - 198 990 shares sold at $15.50 above par value ($10.00)
47 TOTAL
FERC FORM NO.2 (12-96)
Name of Respondent Date of Report
(Mo, Da, Yr)
Number of Shares
(b)
1964 - 218 888 shares sold at $26.00 above par value ($10.00)
1968 - 42 544 shares sold at $20.75 above par value ($10.00)
198 990
218 888
1975 - 1 040 000 shares sold at $26.875 above par value ($5.00)
544
040 000
1978 - 700 000 shares sold at $31.00 above par value ($5.00)700 000
900 0001980 - 900 000 shares sold at $39,25 above par value ($5.00)
1983 - 1 100 000 shares sold at $40.125 above par value ($5.00)
257 shares sold to officers under incentive stock option plan
113 076 shares sold to Dividend Reinvestment Plan
No shares, adj. to reflect subsidiary correction
100 000
257
113 076
1984 - 32 893 shares sold to officers under incentive stock option plan
141 871 shares sold to Dividend Reinvestment Plan
Fractional share withdraw I adjustment
893
141 871
1985 - 1 425 672 shares sold at $15.0356 above par value ($2.50)
Fractional share withdrawl adjustment
1,425 672
1988 - Exchange of MFS Owned Questar Pipeline Stock for
Questar owned MFS stock and subsequent retirement 936 191)
1989 - 1 250 000 shares sold to Questar Corp.
Equity investment 250 000
1994 - Mtn. Fuel received $20 000 000 i'n new common equity
from Questar - Equity Infusion 7/94
1999 - Questar Gas Received $40 000 000 in new common equity
from QRS 6/99
200 I - Questar Gas Received $40 000 000 in new common equity
from Questar Regulated Services 12/01
2005 - Adj equity for QRS closeout
2006 - Unearned compensation amortization - Restricted Stock
Unearned compensation amortization - Stock Options
250 000
Page 252
Year of Report
Dec. 31 2006
Amount
(c) ,
084 345
691,088
882 788
950 000
700 000
325,000
137 500
490 392
039,484
(779 808)
511 103
317 170
(1,659)
435 820
(288)
(166 782 935)
875 000
000 000
40;000 000
000 000
620 025)
630 508
604
115 959,087
Name of Respondent This Report Is:
(l)~ An OriginalOUESTAR GAS COMPANY (2)n A Resubmission
OTHER PAID-IN CAPITAL (Accounts 208-211)
1. Report below the balance at the end of the year the capital changes that gave
and the infonnation specified below for the rise to amounts reported under this caption in-
respective other paid-in capital accounts. cluding identification with the class andProvide a subheading for each account and show series of stock to which related.
a total for the account, as well as a total of all (c) Gain or Resale or Cancellation of Reacquir-
accounts for reconciliation with the balance sheet, edCapital Stock (Account 210)-Report balance
page 112. Explain changes made in any at beginning of year, credits, debits, andaccount during the year and give the account- balance at end of year with a designation of theing entries effecting such change. nature of each credit and debit identified by
the class and series of stock to which related.
(d) Miscellaneous Paid-In Capital (Account 211)-
Classify amounts included in this account ac-
cording to captions that, together with brief
explanations, disclose the general nature of the
transactions that gave rise to the reported
amounts.
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31. 2006
(a) Donations Received from Stockholders (Account
208)-State amount and briefly explain
the origin and purpose of each donation.
(b) Reduction in Par or Stated Value of Capital
Stock (Account 209)-State amount and briefly explainLine ItemNo. (a)
1 GAIN ON CANCELLA nON OF REAC UIRED CAPITAL STOCK - ACCOUNT 210
NONE
16 MISCELLANEOUS PAID-IN CAPITAL - ACCOUNT 21117 NONE
40 TOTAL
FERC FORM NO.2 (12-96)
Amount
(b)
Page 253
Name of Respondent This Report Is:Date of Report Year of Report
(1) 5J An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2)n A Resubmission Dec. 31 2006
DISCOUNT ON CAPITAL STOCK (Account 213)
1. Report the balance at end of year of discount on cap ment giving particulars (details) of the change. State the
stock for each class and series of capital stock.reason for any charge-off during the year and specify the
2. If any change occured during the year in the balance amount charged.
with respect to any class or series of stock, attach a state-
Balance at
Line Class and Series of Stock End of Year
No.(a)(b)
TOTAL NONE
CAPITAL STOCK EXPENSE (Account 214)
1, Report the balance at end of year of capital stock e:ment giving particulars (details) of the change. State the
penses for each class and series of capital stock.reason for any charge-off of capital stock expense and
2. If any change occured during the year in the balan(specify the account charged.
with respect to any class or series of stock, attach a state-
Balance at
Line Class and Series of Stock End of Year No.(a)(b)
TOTAL NONE
FERC FORM NO.2 (12-96)Page 254
This Report Is:
(1)51 An Original
QUESTAR GAS COMPANY (2)0 A Resubmission
SECURITIES ISSUED OR ASSUMED AND
SECURITIES REFUNDED OR RETIRED DURING THE YEAR
Name of Respondent
1. Furnish a supplemental statement giving a brief
description of security financing and refinancing trans-
actions during the year and the accounting for the secur-
ities, discounts, premiums, expenses, and related gains
or losses. Identify as to Commission authorization num-
bers and dates.
2. Furnish particulars (details) showing fully the
accounting for the total principal amount, par value, or
stated value of each class and series of security issued
assumed, retired, or refunded and the accounting for pre-
miums, discounts, expenses and gains or losses
relating to the securities. Set forth th~ facts of
the accounting clearly with regard to redemption
premiums, unamortized discounts, expenses, and
gains or losses relating to securities retired or
refunded , including the accounting for such
amounts carried in the respondent's accounts at
the date of the refunding or refinancing
transactions with respect to securities
previously refunded or retired.
NOTES
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
3. Include in the identification of each class and
series of security, as appropriate, the interest or
dividend rate, nominal date of issuance, maturity date
aggregate principal amount, par value or stated value, and
number of shares. Give also the issuance of redemption
price and name of the principal underwriting finn through
which the security transactions were consummated.
4. Where the accounting for amounts relating to securi-
ties refunded or retired is other than that specified in
General Instruction 17 of the Unifonn System of Accounts
give references to the Commission authorization for the
different accounting and state the accounting method.
5. For securities assumed, give the name of the company
for which the liability on the securities was assumed as
well as particulars (details) of the transactions whereby
the respondent undertook to pay obligations of another
company. If any unamortized discount, premiums, expenses
and gains or losses were taken over onto the respondent'
books, furnish details of these amounts relating to refund-
ed securities clearly eannarked.
COMMON STOCK
No activity during the year of2006 was recorded regarding the common stock.
FERC FORM NO.2 (12-96)Page 255
This Report Is:
(I)QgAn Original
QUESTAR GAS COMPANY (2)11"-- Resubmission
LONG-TERM DEBT (Accounts 221 , 222, 223, and 224)
I. Report by balance sheet Account the particulars or bonds assumed by the respondent, inClude In
(details) concerning long-term debt included in Accounts column (a) the name ofthe issuing company as well as
221, Bonds, 222, Reacquired Bonds, 223, Advances a description of the bonds.
from Associated Companies, and 224, Other Long-Term 3. For advances ti:om Associated Companies, report
Debt. l!"information to meet the stock exchange re- separately advances on notes and advances on open
porting requirement outlined in column (a) is available accounts. Designate demand notes as such. Include
from the SEC IO-K Report Form tiling, a specific ret~ in column (a) names of associated companies from
erence to the report form (Le. year and company title) which advances were received.
may be reported in column (a) provided the fiscal years 4, For receivers' certificates, show in column (a)
tor both the 10-K report and this report are compatible. the name of the court and date of court order under
which such certificates were issued,
Name of Respondent
Line
No,
Nominal
Date
Class and Series of Obligation and
Name of Stock Exchange Issue
(a)(b)
Ronc1s - Account
7.48% Notes
88% Notes
89% Notes
88% Notes
88% Notes 10-
79% Notes 10-
79% Notes 01-
5.31 % Notes 03-
62% Term *12-
L'f
L I
L/j
29 *$10 000 000 ofthe $53 000 000 is due in the
30 next 12 months,
34 * Variable interest rate35 as of December 3 I, 2006
38 TOTAL
FERC FORM NO.2 (ED. 12-89)Page 256
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
Date
Maturity
Outstanding
(Total amount
outstanding
without reduction
for amounts held
by resp,ondent)
(d)(c)
000 000
500 000
000 000
000 000
10-500 000
10-000 000
01-000 000
03-000 000
12-000 000
323 000 000
Name of Respondent This Report Is:
(I)~ An Original
QUESTAR GAS COMPANY (2)0 A Resubmission
LONG TERM DEBT (Accounts 221 222 223, and 224 (Continued)
5. In a supplemental statement, give explanatory have been nominally Issuea ana are nomlnally outstanalng
particulars (details) for Accounts 223 and 224 of net at end of year, describe such securities in a footnote.
changes during the year. With respect to long-term 8, If interest expense was incurred during the year on any
advances, show tor each company: (a) principal ad- obligations retired or reacquired before end of year, include
vanced during year, (b) interest added to principal such interest expense in column (f). Explain in a footnote
amount, and (c) principal repaid during year. Give any ditlerence between the total of column (f) and the
Commission authorization numbers and dates, total of Account 427 Interest on Long-Term Debt and
6, I f the respondent has pledged any of its long-term Account 430, Interest on Debt to Associated Companies.
debt securities, give particulars (details) in a tootnote 9, Give particulars (details) concerning any long-tenD
including name ofthe pledgee and purpose ofthe pledge, debt authorized by a regulatory commission but not yet
7. I fthe respondent has any long-term securities which issued.INTEREST FOR YEAR HELD BY RESPONDENT
Date of Report
(Mo, Da, Yr)
Year of Report
Dee, 31, 2006
Rate
(in %)
Reacquired
Bonds
(Acct. 222)
Redemp-
tion Price
Per $100
at End ofAmountSinking and
Other Funds Year
(e)(I)
(g)
(h)(i)
7.48 965 304 101.9
173,452 107.
137 796 107,
137 796 107.
993 252 107.
6.3 780 000 10 1.3
000 004 10 1.3
5.31 3,717 000 96,
723 680 100
* Account 430 includes
an additional 378 195
interest on Short-Term
Debt to Associated
Companies
628 284
Page 257
Line
No.
L;.j
",+
,,0
,,/
,,0
Name of Respondent This Report Is: Date of Report
(1)(29 An Original' (Mo , Da, Yr)
QUEST AR GAS COMPANY (2) DA Resubmission Dec. 31 , 2006
UNAMORTIZED DEBT EXPENSE, PREMIUM AND DISCOUNT ON LONG-TERM DEBT (Accounts 181 225 226)
I. Keport unaer separate sutJlleacllngs tor UnamortIzed J. In column (b) show the prInCIpal amount or Donas or
Debt Expense, Unamortized Premium on Long- Tenn Debt other long-tenn debt originally issued.
and Unamortized Discount on Long-Tenn Debt, particulars 4. In column (c) show the expense, premium or discount
(details) of expense, premium or discount applicable to each with respect to the amount of bonds or other long-tenn
class and series oflong-tenn debt debt originally issued.
2. Show premium amounts by enclosing the figures in
parentheses.
Line
No,
PrIncipal
Amount of
Debt Issued
Total Expense
Premium or
Discount
Designation of
Long-Term Debt
(a)
Unamortized Debt Ex ense - Account 181
8.34% Notes
8.3% Notes
7.48% Notes6 8.1% Notes7 8.1% Notes
8 6.9% Notes
9 6.89% Notes
10 6,89% Notes
11 6,85% Notes
12 6.3% Notes
13 5.0% Notes
14 5.31% Notes
15 5,62% Notes
16 TOTAL Account 181
(b)(c)
000 000
000 000
000 000
000 000
000 000
500 000
000 000
000 000
500 000
000 000
000 000
000 000
000 000
825 905
120 000
416 336
392 274
127 500
485 427
500
000
108 750
623 861
452 957
733 176
190
FERC FORM NO.2 (ED. 12-88)Page 258
Year of Report
AMORTIZATION
PERIODDate Date To
From
(d)
12-
10-
10-
01-
03-
12/15-
(e)
12-
10-
10-
01-
01-
12/15-
Name of Respondent This Report Is:Date of Report Year of Report
(1) ~An Original (Mo, Da, Yr)
QUEST AR GAS CaMP ANY (2) Resubmission Dee, 31, 2006
UNAMORTIZED DEBT EXPENSE, PREMIUM AND DISCOUNT ON LONG-TERM DEBT (Accounts 181 225 226) (Cont.)
5. Furnish In a tootnote particulars ~aetalls) regarding the 6. Identity separately undisposed amounts applicable to
treatment of unamortized debt expense, premium or discount issues which were redeemed in prior years.
associated with issues redeemed during the year, Also, give 7. Explain any debits and credits other than amortization
in a footnote the date ofthe Commission s authorization of debited to Account 428, Amortization of Debt Discount
treatment other than as specified by the Uniform System of and Expense, or credited to Account 429, Amortization of
Accounts,Premium on Debt - Credit.
Balance at Debits During Credits During Balance at
Beginning of Year Year Year End of Year Line
No.
(f)
(g)
(h)(i)
377 901 788 355 113
225 036 189
825 756 069
211 382 076 194 306
471 248 223
222 235 328 192 907
169 888 281
768 876 892
005 5,436 569
384 043 715 327 328
320 845 296 275 549
598 360 024 549 336
190 824 366
398 229 190 274 291 186 128
FERC FORM NO.2 (ED. 12-86)Page 259
Name of Respondent This Report Is:
(1) Q9 An Original
QUESTAR GAS COMPANY (2) n A Resubmission
UNAMORTIZED LOSS AND GAIN ON REACQUIRED DEBT (Accounts 189 257)
1. Report under separate subheadings for Unamortized with GeneriifInstructlOn 17 ofthe Umfonn Systems
Loss and Unamortized Gain on Reacquired Debt, particulars of Accounts.
(details) of gain and loss, including maturity date, on reac- 4. Show loss amounts by enclosing the figures in
quisition applicable to each class and series of long-tenn parentheses.
debt. If gain or loss resulted trom a refunding transaction 5, Explain in a footnote any debits and credits
include also the maturity date of the new issue. other than amortization debited to Account 428.
2. In column (c) show the principal amount of bonds or Amortization of Loss on Reacquired Debt, or
other long-tenn debt reacquired, credited to Account 429., Amortization of Gain on
3. In column (d) show the net gain or net loss realized Reacquired Debt-Credit
on each debt reacquisition as computed in accordance
Date
Reac-
quired
(b)
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Line
No.
Principal
of Debt
Reacquired
(c)
Balance at
End of Year
(f)
Balance at
Beginning
of Year
(e)
Designation ofLong-Tenn
Debt
(a)
Net Gain or
Net Loss
(d)
8.34% Notes
Due 2022
7.48% Notes
Due 2008
8.34% Notes
Due 2022
39% Notes
Due 2022
8-11 % Notes
Due 2023
12% Notes
(56 544)937 688 881 144
(216 960)452 000 235 040
(220 248)762 571 542 323
(88 401)1,470 900 382 499
(130 892)243 709 112 817
(34 544)637 425 602 882
LIS
j I
j /
j1\
Total Account 189 (747 589)504 294 756 704
FERC FORM NO.1 (ED. 12-86)Page 260
Name of Respondent This Report is:
(1) !XI An OriginalVEST AR GAS COMPANY A Resubmission
RECONCILIA nON OF REPORTED NET INCOME WITH TAXABLE INCOME
FOR FEDERAL INCOME TAXES
1. Report the reconciliation of reported net income for the 2. If the utility is a member of a group that files
year with taxable income used in computing Federal Income consolidated Federal tax return, reconcile reported
Tax accruals and show computation of such tax accruals. net income with taxable net income as if a separate
Include in the reconciliation, as far as practicable, the return were to be filed, indicating, however, inter-
same detail as furnished on Schedule M-l of the tax return company amounts to be eliminated in such a consoli-
for the year, Submit a reconciliation even though there is dated return. State names of group members, tax
no taxable income for the year. Indicate clearly the nature assigned to each group member, and basis of alloca-of each reconciling amount tion, assignment, or sharing of the consolidated
tax amon the rou members.
Date of Report Year of Report
(Mo, Da, Yr)
Dec. 31 , 2006
Line
No.
DETAILS Amount
, 37,030 224
Taxable Income Not Re orted on Books
Contributions in Aid of Construction
Deductions Recorded on Books Not Deducted for Return:
Federal Income Tax 17 437 253 Purchase Gas Adj, 39 851 814
Bond Amortization 747 589 Vacation Accrual 976 178
Business Meals & Lobbying 122 429 Clearing Acct Adj 147 215 Stock Based Comp, 541 897
Capitalized Interest 216 830 Research & Dev, Accrual 622 554
Income Recorded on Books Not Included in Return:
Taxable Income
Tax Rate
728 695
35.00%
505 043
(16 006 113)
677
17,437 253
Deferred Tax
Tax Credits
Adj, of Prior Year
Fed, Income Tax Expense
FERC FORM NO.2 (12-96)Page 261
Name of Respondent This Report Is:Date of Report Year of Report
(I) IX) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) 0 A Resubmission Dec. 31, 2006
DISTRIBUTION OF TAXES CHARGED
Gas Other Income Clearing &
408100 & Deductions Other Misc.
Kind of Tax 409101 409111 (409201 Fed. & 409211 St.)Accounts
FEDERAL TAXES
Income Tax 31,427,711 407,354
FICA Tax 309,182 034'166
Fed Highway & Telecom Taxes 851
Fuel Tax (32,620)
Unemployment Tax 44,529 24,068
TOTAL 33,781,422 407,354 029,465
UTAH TAXES
Franchise Tax 101,323 287,186
Property Tax 148,494 384,761
Sales and Use Tax 709,786
Diesel Fuel Tax
Municipal Energy Tax 13,138
Unemployment Tax 86,975 47,682
Business License Fee
Telecom Universal Servo Fund Tx
Public Utilities Reg. Fee 380,833
TOTAL 12,717,664 287,186 155,367
WYOMING TAXES
Property Taxes 169,383 32,014
Public Utilities Reg. Fee 155,824
Sales and Use Tax 500
Utility Rev. Fran. Tax 306,541
Business License Fee
Unemployment Tax 228 500
TOTAL 640,001 39,061
OTHER STATE TAXES
Colorado Income Tax 22,305
Colorado Income Tax W/H
Colorado Property Tax 548
Montana Income Tax 224
Miscellaneous Fees
Idaho Income Tax 749
Idaho Property Tax 23,116
Idaho Public Utilities Reg. Fee 410
New Mexico Income Tax 157
TOTAL 58,509
TOTAL ACCRUED & PREPD.TAXES 47,197,596 694 540 223 893PREPAID TAXES (Acct. 165)
FERC FORM NO.2 (ED. 12-94)Page 262
Name of Respondent This Report Is:Date of Report Year of Report
(l)LX An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2)0 A Resubmission Dec. 31, 2006
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
Taxes Taxes Paid Taxes
Accrued Charged During Accrued
Kind of Tax Beginnmg During Year Year Ending
FEDERAL TAXES
Income Tax (5,508,137)32,835,065 (26,484,362)842,566
FICA Tax 861 343,348 (5,344,209)
Fed Highway & Telecom Taxes (5,617)851 (3,850)(5,616)
Fuel Tax (110,874)(32,620)40,308 (103,186)
Unemployment Tax 721 68,597 (68,035)283
TOTAL (5,623,046)38,218,241 (31,860,148)735,047
UTAH TAXES
Franchise Tax 048,669 388,509 (4,863,164)574,014
Property Tax 533,255 (6,533,255)
Sales and Use Tax 110,690 709,786 (726,339)94,137
Diesel Fuel Tax 15,933 782 16,715
Municipal Energy Tax 115,505 13 ,138 128,643
Unemployment Tax 976 134,657 (134,663)970
Bus. License Fee (39)
Telecom / Universal Servo Fund Tx 131 (541)(410)
Public Utilities Reg. Fee 000 380,833 (2,380,833)000
TOTAL 298,904 14,160,217 (14,638,052)821,069
WYOMING TAXES
Property Taxes 96,964 201,397 (197,727)100,634
Public Utilities Reg. Fee 56,252 155,824 (213,981)(1,905)
Sales and Use Tax 204 500 (2,697)
Utility Rev. Fran. Tax (259,407)306,588 (248,254)(201,073)
Business License Fee (25)
Unemployment Tax 389 12,728 (12,415)702
TOTAL (105,598)679,062 (675,099)(101,635)
OTHER STATE TAXES
Colorado Income Tax (30,000)22,305 (14,000)(21,695)
Colorado Income Tax Will (100)100
Colorado Property Tax 548 (5,548)
Montana Income Tax 224 (224)
Colorado License Fee
Idaho Income Tax (3,707)749 (13,209)(14,167)
Idaho Property Tax 11,392 23,116 (22,951)11,557
Idaho Public Utilities Reg. Fee (3,095)410 (4,410)(3,095)New Mexico Income Tax 157 (157)
TOTAL (25,510)58,509 (60,399)(27,400)
TOTAL ACCRUED & PREPD.TAXES (3,455 250)53,116,029 (47,233,698)427,081PREPAID TAXES (AcctI65)
FERC FORM NO.2 (ED. 12-89)Page 263
Name of Respondent This Report Is:Date of Report Year of Report
(l)~ An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2)0 A Resubmission Dec. 31 , 2006
MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES (Account 242)
1. Describe and report the amount of other current 2. Minor items (less than $250 000) may be groupe(
and accrued liabilities at the end of year.under appropriate title.
Balance at
Line Item End of Year
No.
(a)(b)
Employee Incentive Plan 881 285
Directors Deferred Compensation Plan 151 622
Over and Short Cash
REACH Program 331
Management Deferred Compensation 817 912
TOTAL 863 150
FERC FORM NO.2 (ED. 12-86)Page 268
Name of Respondent This Report Is:Date of Report Year of Report
(1) IXJ An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2) D A Resubmission Dec. 31, 2006
OTHER DEFERRED CREDITS (Account 253)
1. Report below the particulars (details) called for
concerning other deferred credits.
2, For any deferred credit being amortized, show the
period of amortization,
3. Minor items (less than $250 000) may be grouped
by classes,
Description of Other Balance at DEBITS
Line Deferred Credits Beginning CONTRA Credits Balance at
No.of Year Account Amount End of Year
(a)(b)(c)(d)(e)(f)
Unclaimed Customer Credits 745 Various 811 934
Retirement Plans 293 802 Various 038 256 599 570 855 116
Other Deferred Credits - Retainage 241,415 Various 158 388,461 569 718SFAS 143 575 685 Various 349 683 226 029
TOTAL 162 647 30,455 908 988 058 694 797
FERC FORM NO.2 (12-96)Page 269 (Next page is 274)
Name of Respondent This Report Is:
(1 ) IX) An Original
QUEST AR GAS COMPANY (2) D A Resubmission
ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282)
I. Report the infonnation called for below concerning the to property not subject to accelerated amortization.
respondent's accounting for defelTed income taxes relating 2. For Other (Specify), include deferrals relating
CHANGES DURING YEAR
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Line
No.
Account Subdivisions Balance at
Beginning
of Year
Amounts
Debited To
Account 410.1
(c)
Amounts
Credited To
Account 411.
(a)
Account 282
Electric
Gas
Other (Define)
TOTAL (Enter Total oflines 2 thru 4)
Other (Specify)
115 899 907 893 (433 193)
115 899,907 893 (433 193)
TOTAL Account 282 (Enter Total of lines 5 thru 8)115 899 907 893 (433 193)
10 Classification of TOTALII Federal Income Tax12 State Income Tax13 Local Income Tax
106 195 658
9,704 249
(433 193)
10,893
NOTES
FERC FORM NO.2 (12-96)Page 274
Name of Respondent This Report Is: Date of Report Year of Report
(1) (XJ An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2) 0 A Resubmission Dec. 31,2006
ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282) (Continued)
to other income and deductions.
3. Use separate pages as required.
CHANGES DURING YEAR
Amounts
Debited To
Account 410.
Amounts
Credited To
Account 411.2
Debits
Account
Credited
ADJUSTMENTS
Credits
Account
Debited
(i)
Balance at
End of Year
Line
No,
Amount Amount
560 276 190.741 660 II7 779,543
560 276 741 660 II 7 779,543
560 276 741 660 117 779,543
560 276 604 161
137,499
107 926 902 II
852 641
NOTES (Continued)
2006 Acct. 190 entries transferred current deferred taxes to current asset accounts.
FERC FORM NO.2 (12-96)Page 275
Name of Respondent This Report Is:
(1 ) IX) An Original
QUESTAR GAS COMPANY (2) 0 A Resubmission
ACCUMULATED DEFERRED fNCOME TAXES - OTHER (Account 283)
I, Report the infonnation called for below concerning the 2. For Other, include deferrals relating
respondent's accounting for deferred income taxes relating to other income and deductions.
to amounts recorded in Account 283.
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
CHANGES DURING YEAR
Line
No.
Account Subdivisions Balance at
Beginning
of Year
Amounts
Debited to
Account 410.
(c)
Amounts
Credited to
Account 411.1
(a)
Account 283
Electric
Gas
Other (Define)
Total (Total of lines 2 thru 4)
Other (Specify)
143 689 (15 143 689)
143 689 (15 143 689)
TOTAL Account 283 (Total of lines 5 thru 6.
Classification of TOTAL
Federal Income Tax
State Income Tax
Local Income Tax
143 689
948 135
195 554
(13 948 135)
(1,195 554)
FERC FORM NO.2 (12-96)Page 276
Name of Respondent This Report Is:
(1) lKJ An Original
QUEST AR GAS COMPANY (2) D A Resubmission
ACCUMULATED DEFERRED INCOME TAXES - OTHER (Account 283)
3. Provide in a footnote explanations for pages 4. Add additional rows as necessary to report all data.
276 and 277. Include amounts relating to When rows are added, the additional row numbers shouldinsignificant items listed under Other. follow in sequence, 4., and 6., etc.CHANGES DURING YEAR ADJUSTMENTSAmounts Amounts Debits Credits
Debited to Credited to Account Account
Account 410.Account 411.2 No, Amount
(e)
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
Balance at
End of Year
Line
No.
Amount
FERC FORM NO.2 (12-96)Page 277
Name of Respondent This Report Is:
(1)GS1 An OriginalQUEST AR GAS COMPANY 2) A Resubmission
OTHER REGULATORY LIABILITIES (Account 254)
1. Report below the details called for concerning 3. Minor items (5% of the Balance at End ofYeai:- forother regulatory liabilities which are created Account 254 or amounts less than $250 000, whicheverthrough the rate making actions of regulatory agencies is less) may be grouped by classes.
(and not includable in other amounts).
2, For regulatory liabilities being amortized, show period of
amortization in column
Date ofRepo Year of Report
(Mo, Da, Yr)
Dec. 31 , 2006
Line Description and Purpose ofNo. Other Regulatory Liabilities
(a)
I SF AS 109 Tax Deferral
5 Rate Reduction Phase In
Deferred Gas Costs
42 TOTAL
Balance at
Begillning
of Year
072 742
DEBITS
Account
Credited
(c)
190
Credits Balance at
End of Year
(t)
832 423
Amount
(d)
340,452
(e)
100 133
480
191
072 742 340 452 100 133 832,423
FERC FORM NO.2 (12-96)Page 278 Next page is 300
BLANK PAGE
(Next page is 300)
This Report is:
(1g: An Original
QUESTARGAS COMPANY (20 AResubmission
GAS OPERATING REVENUES (ACCOUNT 400)
1. Report below natural gas operating revenues for counted for each group of meters added. The average
each prescribed account, and manufactured gas revenues number of customers means the average of twelve figuresin total. at the close of each month.
2. Natural gas means either natural gas unmixed or any 4. Report quantities of natural gas sold in Mcf(14.
mixture of natural and manufactured gas, psia at 60 degrees F). Ifbillings are on a therm basis
3, Report number of customers, columns (t) and (g), on give the Btu contents of the gas sold and the sales con-
the basis ofmteres, in addition to the number of flat verted to Mcf.
rate accounts; except that where separate meter readings 5, If increases of decreases trom previous year (columns
are added for billing purposes, one customer should be (c), (e) and (g), are not derived trom previously reported
OPERATING REVENUES
Amount for Year Amount for
Previous Year
Name of Respondent Date of Report
(Mo, Da, Yr)
Line
No.
Title of Account
(a)
GAS SERVICE REVENUES
480 Residential Sales
481 Commercial & Industrial Sales
Small (or Commercial) (See Instruction 6)
Large (or Industrial) (See Instruction 6)
482 Other Sales to Public Authorities
484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
483 Sales for Resale10 TOTAL Natural Gas Service RevenuesII Revenues trom Manufactured Gas12 TOTAL Gas Service Revenues13 OTHER OPERATING REVENUES
14 485 Intracompany Transfers
15 487 Forfeited Discounts
16 488 Misc. Service Revenues
17 489 Rev. from Trans. of Gas of Others
18 490 Sales of Prod. Ext. trom Nat. Gas
19 491 Rev. trom Nat. Gas Proc. by Others
20 492 Incidental Gasoline and Oil Sales
21 493 Rent trom Gas Property
22 494 Interdepartmental Rents
23 495 Other Gas Revenues24 TOTAL Other Operating Revenues25 TOTAL Gas Operating Revenues
26 (Less) 496 Provision for Rate Refunds27 TOTAL Gas Operating Revenues Net of Provision for Refunds
28 Dist. Type Sales by States (Incl. Main Line Sales to
Residential and Commercial Customers)
29 Main Line Industrial Sales (Incl. Main Line Sales to
Pub. Authorities)
30 Sales for Resale
31 Other Sales to Pub. Auth. (Local Dist. Only)
32 Interdepartmental Sales
33 TOTAL (Same as Line 10, Columns (b) and (d))
(b)
011 934 218
804 403
023 738 621
023 738 621
Year of Report
Dec. 31, 2006
(c)
907 900 183
701 386
924 601 569
924 601 569
919 322
887 657
951 046
775 354
685 634
629 521
848 534
064 587 155
064 587 155
011 934 218
804 403
023 738 621
FERC FORM NO.2 (12-96)Page 300
320 563
147 678
122 803
976 879
935 751
442 198
945 872
962 547 441
Name of Respondent This Report Is:
(1(J An Original
QUEST AR GAS COMPANY (20 A Resubmission
GAS OPERATING REVENUES (ACCOUNT 400) (Continued)
figures, explain any inconsistencies in a footnote, in a footnote,
6. Commercial and Industrial Sales, Account 481, may 7, See page 108-109, Important Changes During Year
be classified according to the basis of cIassifica- for important new territory added and important rate
tion (Small or Commercial, and Large or Industrial) increases or decreases,
regularly used by the respondent if such basis of
classification is not generally greater than 200 000
Mcfper year or approximately 800 Mcfper day of
normal requirements, (See Account 481 of the Uniform
System of Accounts, Explain basis of classification
DTH OF NATURAL GAS SOLD
Quantity for Year
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Quantity for
Previous Year
A VG. NO. OF NA T. GAS CUSTOMERS PER MONTH
Number for Year Number for Line
Previous Year No.
614 484
109 102
455
091
803 468
803 468
105 278 165
895 865
107 174 030
279 123 881
460 634
10 1 ,990 808 836 047
596 567
104 587 375 836 047
NOTES
105 278 165
895 865
107 174 030
FERC FORM NO.2 (12-96)Page 301
BLANK PAGE
BLANK PAGE
(NEXT PAGES ARE IDAHO SUPPLEMENTARY PAGES)
Name of Respondent This Report is:
(Ii): An Original
QUEST AR GAS COMPANY (20 A Resubmission
GAS OPERATING REVENUES (ACCOUNT 400) IDAHO
1. Report below natural gas operating revenues for counted for each group of meters added. The average
each prescribed account, and manufactured gas revenues number of customers means the average of twelve figuresin total. at the close of each month.
2. Natural gas means either natural gas unmixed or any 4. Report quantities of natural gas sold in Mcf(14.
mixture of natural and manufactured gas. psia at 60 degrees F). If billings are on a therm basis
3. Report number of customers, columns (f) and (g), on give the Btu contents of the gas sold and the sales con-
the basis of mteres, in addition to the number of flat verted to Mcf.
rate accounts; except that where separate meter readings 5. If increases of decreases from previous year (columns
are added for billing purposes, one customer should be (c), (e) and (g), are not derived from previously reported
OPERATING REVENUES
Amount for Year Amount for
Previous Year
Date of Report
(Mo, Da, Yr)
Line
No.
Title of Account
(a)
GAS SERVICE REVENUES
480 Residential Sales
481 Commercial & Industrial Sales
Small (or Commercial) (See Instruction 6)
Large (or Industrial) (See Instruction 6)
482 Other Sales to Public Authorities
484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
483 Sales for Resale
TOTAL Natural Gas Service Revenues
Revenues from Manufactured Gas
TOTAL Gas Service Revenues
OTHER OPERATING REVENUES
485 Intracompany Transfers
487 Forfeited Discounts
488 Misc. Service Revenues
489 Rev. from Trans. of Gas of Others
490 Sales of Prod. Ext. from Nat. Gas
491 Rev. from Nat. Gas Proc. by Others
492 Incidental Gasoline and Oil Sales
493 Rent from Gas Property
494 Interdepartmental Rents
495 Other Gas Revenues
TOTAL Other Operating Revenues
TOTAL Gas Operating Revenues
(Less) 496 Provision for Rate Refunds
TOTAL Gas Operating Revenues Net of Provision for Refunds
Dist. Type Sales by States (Incl. Main Line Sales to
Residential and Commercial Customers)
Main Line Industrial Sales (Incl. Main Line Sales to
Pub. Authorities)
Sales for Resale
Other Sales to Pub. Auth. (Local Dist. Only)
Interdepartmental Sales
TOTAL (Same as Line 10, Columns (b) and (d))755 251
643 124
755 251
755 251
755 251
Year of Report
Dec. 31, 2006
572 010
778
772 602
772 602
772 602
876
768 127
768 127
755 251
FERC FORM NO.2 (12-96)Page 300
936
940
000
839
839
785 441
Name of Respondent This Report Is:
(la An Original
QUEST AR GAS COMPANY (20 A Resubmission
GAS OPERATING REVENUES (ACCOUNT 400) (Continued) IDAHO
figures, explain any inconsistencies in a footnote, in a footnote,
6, Commercial and Industrial Sales, Account 481 , may 7, See page 108-109, Important Changes During Year
be classified according to the basis of classifica- for important new territory added and important rate
tion (Small or Commercial, and Large or Industrial) increases or decreases,
regularly used by the respondent if such basis of
classification is not generally greater than 200 000
Mcfper year or approximately 800 Mcfper day of
nonnal requirements, (See Account 481 of the Unifonn
System of Accounts. Explain basis of classification
DTH OF NATURAL GAS SOLD
Quantity for Year
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
Quantity for
Previous Year
A VG, NO. OF NAT. GAS CUSTOMERS PER MONTH
Number for Year Number for Line
Previous Year No.
740
284
271
426
215
179 909
179 909
196 991
196 991
804 749
804 749
NOTES
179 909
179 909
FERC FORM NO.2 (12-96)Page 301
208
Name of Respondent This Report is:
(1) !XI An OriginalUESTAR GAS COMPANY A Resubmission
RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME
FOR FEDERAL INCOME TAXES
I. Report the reconciliation of reported net income for the 2. If the utility is a member of a group that files
year with taxable income used in computing Federal Income consolidated Federal tax return, reconcile reported
Tax accruals and show computation of such tax accruals. net income with taxable net income as if a separate
Include in the reconciliation, as far as practicable, the return were to be filed, indicating, however, inter-
same detail as furnished on Schedule M-I of the tax return company amounts to be eliminated in such a consoli-
for the year. Submit a reconciliation even though there is dated return. State names of group members, tax
no taxable income for the year. Indicate clearly the nature assigned to each group member, and basis of a\Ioca-of each reconciling amount. tion, assignment, or sharing of the consolidated
tax amon the rou members,
Line
No.
DETAILS
Taxable Income Not Re orted on Books
Contributions in Aid of Construction
Date of Report Year of Report
(Mo, Da, Yr)
Dec. 31 2006
Amount
, 37 030 224
Deductions Recorded on Books Not Deducted for Return:
Federal Income Tax 17 437 253 Purchase Gas Adj. 39 851 814
Bond Amortization 747 589 Vacation Accrual 976 178
Business Meals & Lobbying 122 429 Clearing Acct Adj 147 215 Stock Based Compo 541 897
Capitalized Interest 216 830 Research & Dev, Accrual 622 554
Income Recorded on Books Not Included in Return:
Taxable Income
Tax Rate
Deferred Tax
Tax Credits
Adj, of Prior Year
Fed, Income Tax Expense
FERC FORM NO.2 (12-96)Page 261
728 695
35.00%
505 043
(16 006 113)
677
17,437 253
Name of Respondent This Report Is:Date of Report Year of Report
(I) IX) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) 0 A Resubmission Dec. 31, 2006
DISTRIBUTION OF TAXES CHARGED
Gas Other Income Clearing &
408100 & Deductions Other Misc.
Kind of Tax 409101, 409111 (409201 Fed. & 409211 St.Accounts
FEDERAL TAXES
Income Tax 31,427,711 407,354
FICA Tax 309,182 034'166
Fed Highway & Telecom Taxes 851
Fuel Tax (32,620)
Unemployment Tax 44,529 24,068
TOTAL 33,781,422 407,354 029,465
UTAH TAXES
Franchise Tax 101,323 287,186
Property Tax 148,494 384,761
Sales and Use Tax 709,786
Diesel Fuel Tax
Municipal Energy Tax 13, 138
Unemployment Tax 86,975 47,682
Business License Fee
Telecom Universal Servo Fund Tx
Public Utilities Reg. Fee 380,833
TOTAL 12,717,664 287,186 155,367
WYOMING TAXES
Property Taxes 169,383 32,014
Public Utilities Reg. Fee 155,824
Sales and Use Tax 500
Utility Rev. Fran. Tax 306,541
Business License Fee
Unemployment Tax 228 500
TOTAL 640,001 39,061
OTHER STATE TAXES
Colorado Income Tax 22,305
Colorado Income Tax W/H
Colorado Property Tax 548
Montana Income Tax 224
Miscellaneous Fees
Idaho Income Tax 749
Idaho Property Tax 23,116
Idaho Public Utilities Reg. Fee 410
New Mexico Income Tax 157
TOTAL 58,509
TOTAL ACCRUED & PREPD.TAXES 47,197,596 694 540 223,893PREPAID TAXES (Acct. 165)
FERC FORM NO, 2 (ED. 12-94)Page 262
Name of Respondent This Report Is:Date of Report Year of Report
(l)LX An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2)0 A Resubmission Dec. 31, 2006
TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR
Taxes Taxes Paid Taxes
Accrued Charged During Accrued
Kind of Tax Beginning During Year Year Ending
FEDERAL TAXES
Income Tax (5,508,137)32,835,065 (26,484,362)842,566
FICA Tax 861 343,348 (5,344,209)
Fed Highway & Telecom Taxes (5,617)851 (3,850)(5,616)
Fuel Tax (110,874)(32,620)40,308 (103,186)
Unemployment Tax 721 68,597 (68,035)283
TOTAL (5,623,046)38,218,241 (31,860,148)735,047
UTAH TAXES
Franchise Tax 048,669 388,509 (4,863,164)574,014
Property Tax 533,255 (6,533,255)
Sales and Use Tax 110,690 709,786 (726,339)94,137
Diesel Fuel Tax 15,933 782 16,715
Municipal Energy Tax 115,505 13,138 128,643
Unemployment Tax 976 134,657 (134,663)970
Bus. License Fee (39)
Telecom / Universal Servo Fund Tx 131 (541)(410)
Public Utilities Reg. Fee 000 380,833 (2,380,833)000
TOTAL 298,904 14,160,217 (14,638,052)821,069
WYOMING TAXES
Property Taxes 96,964 201,397 (197,727)100,634Public Utilities Reg. Fee 56,252 155,824 (213,981)(1,905)Sales and Use Tax 204 500 (2,697)
Utility Rev. Fran. Tax (259,407)306,588 (248,254)(201,073)
Business License Fee (25)
Unemployment Tax 389 12,728 (12,415)702
TOTAL (105,598)679,062 (675,099)(101,635)
OTHER STATE TAXES
Colorado Income Tax (30,000)22,305 (14,000)(21,695)
Colorado Income Tax Will (100)100
Colorado Property Tax 548 (5,548)
Montana Income Tax 224 (224)
Colorado License Fee
Idaho Income Tax (3,707)749 (13,209)(14,167)
Idaho Property Tax 11,392 23,116 (22,951)11,557
Idaho Public Utilities Reg. Fee (3,095)410 (4,410)(3,095)New Mexico Income Tax 157 (157)
TOTAL (25,510)58,509 (60,399)(27,400)
TOTAL ACCRUED & PREPD.TAXES (3,455 250)53,116 029 (47,233,698)427,081PREPAID TAXES (Acct.165)
FERC FORM NO, 2 (ED. 12-89)Page 263
Name of Respondent This Report Is:Date of Report Year of Report
(l)1j An Original (Mo, Da, Yr)
QUE STAR GAS COMPANY (2)0 A Resubmission Dec~ 31 2006
MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES (Account 242)
1. Describe and report the amount of other current 2. Minor items (less than $250 000) may be groupe,
and accrued liabilities at the end of year. under appropriate title.
Balance at
Line Item End of Year
No.
(a)(b)
Employee Incentive Plan 881 285
Director s Deferred Compensation Plan 151 622
Over and Short Cash
REACH Program 12,331
Management Deferred Compensation 817 912
TOTAL 863 150
FERC FORM NO.2 (ED. 12-86)Page 268
Name of Respondent This Report Is:Date of Report Year of Report
(1) IX) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) 0 A Resubmission Dec. 31 , 2006
OTHER DEFERRED CREDITS (Account 253)
1. Report below the particulars (details) called for
concerning other deferred credits.
2. For any deferred credit being amortized, show the
period of amortization,
3, Minor items (less than $250 000) may be grouped
by classes.
Description of Other Balance at DEBITS
Line Deferred Credits Beginning CONTRA Credits Balance at
No.of Year Account Amount End of Year
(a)(b)(c)(d)(e)(fI
Unclaimed Customer Credits 745 Various 811 43,934
Retirement Plans 293 802 Various 038 256 599 570 855 116
Other Deferred Credits - Retainage 241 415 Various 158 388,461 569,718SFAS 143 575 685 Various 349 683 226 029
TOTAL 162 647 30,455 908 988 058 694 797
FERC FORM NO.2 (12-96)Page 269 (Next page is 274)
Name of Respondent This Report Is:
(1) iii An Original
QUESTAR GAS COMPANY (2) D A Resubmission
ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282)
1. Report the infonnation called for below concerning the to property not subject to accelerated amortization.
respondent's accounting for defelTed income taxes relating 2. For Other (Specify), include deferrals relating
CHANGES DURING YEAR
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Line
No.
Account Subdivisions
(a)
Balance at Amounts Amounts
Beginning Debited To Credited To
of Year Account 410.1 Account 411.
(c)
115 899 907 893 (433 193)
115 899,907 893 (433 193)
Account 282
Electric
Gas
Other (Define)
TOTAL (Enter Total oflines 2 thru 4)
Other (Specify)
TOTAL Account 282 (Enter Total of lines 5 thru 8)115 899 907 893
10 Classification of TOTAL11 Federal Income Tax12 State Income Tax13 Local Income Tax
106 195 658
704 249
(433 193)
893
NOTES
FERC FORM NO.2 (12-96)Page 274
Name of Respondent This Report Is: Date of Report Year of Report
(1) !XJ An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) D A Resubmission Dec. 31 , 2006
ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282) (Continued)
to other income and deductions.
3. Use separate pages as required.
CHANGES DillUNG YEAR
Amounts
Debited To
Account 410.
(e)
Amounts
Credited To
Account 411.
Debits
Account
Credited
ADJUSTMENTS
Credits
Account
Debited
(i)
Balance at
End of Year
Line
No,
Amount Amount
560 276 190.741 660 II 7 779 543
560 276 741 660 117 779 543
560 276 741 660 117 779 543
560 276 604 161
137 499
107,926 902 II
852 641
NOTES (Continued)
2006 Acct. 190 entries transferred current deferred taxes to current asset accounts.
FERC FORM NO.2 (12-96)Page 275
Name of Respondent This Report Is:
(1) IKJ An Original
QUEST AR GAS COMPANY (2) 0 A Resubmission
ACCUMULATED DEFERRED INCOME TAXES - OTHER (Account 283)
I. Report the infonnation called for below concerning the 2, For Other, include defelTals relating
respondent's accounting for defelTed income taxes relating to other income and deductions.
to amounts recorded in Account 283.
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
CHANGES DURING YEAR
Line
No.
Account Subdivisions Balance at
Beginning
of Year
Amounts
Debited to
Account 410.
(c)
Amounts
Credited to
Account 411.
(a)
Account 283
Electric
Gas
Other (Define)
Total (Total of lines 2 thru 4)
Other (Specify)
143 689 (15 143 689)
143 689 (15 143 689)
TOTAL Account 283 (Total of lines 5 thru 6.
Classification of TOTAL
Federal Income Tax
State Income Tax
Local Income Tax
143 689
948 135
195 554
(13 948 135)
195 554)
FERC FORM NO.2 (12-96)Page 276
Name of Respondent This Report Is:
(1) IKJ An Original
QUEST AR GAS COMPANY (2) D A Resubmission
ACCUMULATED DEFERRED INCOME TAXES - OTHER (Account 283)
3, Provide in a footnote explanations for pages 4. Add additional rows as necessary to report all data.
276 and 277. Include amounts relating to When rows are added, the additional row numbers shouldinsignificant items listed under Other. follow in sequence, 4., 4,, and 6,, 6., etc.CHANGES DURING YEAR ADJUSTMENTSAmounts Amounts Debits Credits
Debited to Credited to Account Account
Account 410.2 Account 411.2 No. Amount No.
(e)
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
Balance at
End of Year
Line
No.
Amount
FERC FORM NO.2 (12-96)Page 277
Name of Respondent This Report Is:
(1)ug An OriginalQUESTARGAS COMPANY 2) A Resubmission
OTHER REGULA TORY LIABILITIES (Account 254)
1. Report below the details called for concerning 3. Minor items (5% of the Balance at End of Year forother regulatory liabilities which are created Account 254 or amounts less than $250 000, whichever
through the ratemaking actions of regulatory agencies is less) may be grouped by classes.
(and not includable in other amounts).
2. For regulatory liabilities being amortized, show period of
amortization in column
Date of Repo Year of Report
(Mo, Da, Yr)
Dec. 31, 2006
Line Description and Purpose ofNo. Other Regulatory Liabilities
(a)
SF AS 109 Tax DefelTal
Balance at
Beginnmg
of Year
(b)
072 742
(e)
100 133
DEBITS
Account
Credited
(c)
190
Credits Balance at
End of Year
(t)
832 423
Amount
(d)
340,452
5 Rate Reduction Phase In
DefelTed Gas Costs
42 TOTAL
480
191
072 742 340 452 100 133 832,423
FERC FORM NO.2 (12-96)Page 278 Next page is 300
BLANK PAGE
(Next page is 300)
This Report is:
(1g: An Original
QUEST AR GAS COMPANY (20 A Resubmission
GAS OPERATING REVENUES (ACCOUNT 400)
1. Report below natural gas operating revenues for counted for each group of meters added. The average
each prescribed account, and manufactured gas revenues number of customers means the average of twelve figuresin total. at the close of each month,
2. Natural gas means either natural gas unmixed or any 4. Report quantities of natural gas sold in Mcf(14.
mixture of natural and manufactured gas, psia at 60 degrees F). If billings are on a therm basis
3. Report number of customers, columns (f) and (g), on give the Btu contents of the gas sold and the sales con-
the basis of mteres, in addition to the number of flat verted to Mcf.
rate accounts; except that where separate meter readings 5. If increases of decreases from previous year (columns
are added for billing purposes, one customer should be (c), (e) and (g), are not derived from previously reported
OPERATING REVENUES
Amount for Year Amount for
Previous Year
Name of Respondent Date of Report
(Mo, Da, Yr)
Line
No.
Title of Account
(a)
GAS SERVICE REVENUES
480 Residential Sales
481 Commercial & Industrial Sales
Small (or Commercial) (See Instruction 6)
Large (or Industrial) (See Instruction 6)
482 Other Sales to Public Authorities
484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
483 Sales for Resale10 TOTAL Natural Gas Service Revenues
1 I Revenues from Manufactured Gas12 TOTAL Gas Service Revenues13 OTHER OPERATING REVENUES
14 485 Intracompany Transfers
15 487 Forfeited Discounts
16 488 Misc. Service Revenues
17 489 Rev. from Trans. of Gas of Others
18 490 Sales of Prod. Ext. from Nat. Gas
19 491 Rev. from Nat. Gas Proc. by Others
20 492 Incidental Gasoline and Oil Sales
21 493 Rent from Gas Property
22 494 Interdepartmental Rents23 495 Other Gas Revenues24 TOTAL Other Operating Revenues25 TOTAL Gas Operating Revenues
26 (Less) 496 Provision for Rate Refunds27 TOTAL Gas Operating Revenues Net of Provision for Refunds
28 Dist. Type Sales by States (Inc!. Main Line: Sales to
Residential and Commercial Customers)
29 Main Line Industrial Sales (Inc!. Main Line Sales to
Pub. Authorities)
30 Sales for Resale
31 Other Sales to Pub. Auth. (Local Dist. Only)
32 Interdepartmental Sales
33 TOTAL (Same as Line 10, Columns (b) and (d))
(b)
Year of Report
Dec. 31 2006
(c)
320 733,415
593 748
011 934 218
804 403
023 738 621
023 738 621
262 016 719
39,245 169
907 900 183
701 386
924 601 569
924 601 569
919 322
887 657
951 046
775 354
685 634
629 521
848 534
064 587 155
064 587 155
011 934 218
804 403
023 738 621
FERC FORM NO.2 (12-96)Page 300
320 563
147 678
6,122 803
976 879
935 751
442 198
945 872
962 547 441
BLANK PAGE
(NEXT PAGES ARE IDAHO SUPPLEMENTARY PAGES)
Name of Respondent
Line
No.
This Report is:
(1 fJ: An OriginalQUESTAR GAS COMPANY (20 A Resubmission
GAS OPERATING REVENUES (ACCOUNT 400) IDAHO
1. Report below natural gas operating revenues for counted for each group of meters added. The average
each prescribed account, and manufactured gas revenues number of customers means the average of twelve figuresin total. at the close of each month.
2. Natural gas means either natural gas unmixed or any 4. Report quantities of natural gas sold in Mcf(14.
mixture of natural and manufactured gas. psia at 60 degrees F). If billings are on a therm basis
3. Report number of customers, columns (f) and (g), on give the Btu contents of the gas sold and the sales con-
the basis of mteres, in addition to the number of flat verted to Mcf.
rate accounts; except that where separate meter readings 5. If increases of decreases from previous year (columns
are added for billing purposes, one customer should be (c), (e) and (g), are not derived from previously reported
OPERATING REVENUES
Amount for Year Amount for
Previous Year
Dec. 31 2006
Date of Report
(Mo, Da, Yr)
Year of Report
Title of Account
(a)
GAS SERVICE REVENUES
480 Residential Sales
481 Commercial & Industrial Sales
Small (or Commercial) (See Instruction 6)
Large (or Industrial) (See Instruction 6)
482 Other Sales to Public Authorities
484 Interdepartmental Sales
TOTAL Sales to Ultimate Consumers
483 Sales for Resale10 TOTAL Natural Gas Service Revenues11 Revenues from Manufactured Gas12 TOTAL Gas Service Revenues13 OTHER OPERATING REVENUES
14 485 Intracompany Transfers
15 487 Forfeited Discounts
16 488 Misc. Service Revenues17 489 Rev. from Trans, of Gas of Others
18 490 Sales of Prod. Ext. from Nat. Gas19 491 Rev. from Nat. Gas Proc, by Others20 492 Incidental Gasoline and Oil Sales21 493 Rent from Gas Property
22 494 Interdepartmental Rents23 495 Other Gas Revenues24 TOTAL Other Operating Revenues25 tOTAL Gas Operating Revenues26 (Less) 496 Provision for Rate Refunds27 TOTAL Gas Operating Revenues Net of Provision for Refunds28 Dist. Type Sales by States (IncL Main Line Sales to
Residential and Commercial Customers)
29 Main Line Industrial Sales (Incl. Main Line Sales to
Pub. Authorities)
Sales for Resale
Other Sales to Pub. Auth, (Local Dist. Only)
Interdepartmental Sales
TOTAL (Same as Line 10, Columns (b) and (d))
643 124 572 010
778
755 251 772 602
755 251 772 602
755 251 772 602
936
940
000
839
876
768 127
839
785 441
768 127
755 251
755 251
FERC FORM NO.2 (12-96)Page 300
Name of Respondent This Report Is:
(1 An Original
QUESTARGAS COMPANY (20 AResubmission
GAS OPERATING REVENUES (ACCOUNT 400) (Continued) IDAHO
figures, explain any inconsistencies in a footnote, in a footnote.
6, Commercial and Industrial Sales, Account 481 , may 7. See page 108-109, Important Changes During Year
be classified according to the basis of classifica- for important new territory added and important rate
tion (Small or Commercial, and Large or Industrial) increases or decreases,
regularly used by the respondent if such basis of
classification is not generally greater than 200 000
Mcfper year or approximately 800 Mcfper day of
nonnal requirements, (See Account 481 of the Unifonn
System of Accounts, Explain basis of classification
DTH OF NATURAL GAS SOLD
Quantity for Year
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Quantity for
Previous Year
A VG, NO, OF NAT, GAS CUSTOMERS PER MONTH
Number for Year Number for Line
Previous Year No.
740
284
271
426
215
179 909
179 909
196 991
196 991
804 749
804 749
NOTES
179 909
179 909
FERC FORM NO.2 (12-96)Page 301
208
Name of Respondent This Report Is:Date of Report Year of Report (I) ~ An Original (Mo, Da, Yr)QUESTAR GAS CO.MP ANY (2) . A Resubmission Dec. 31 2006
DISTRIBUTION TYPE SALES BY STATES
I. Report in total for each State, sales by classes of field and main line sales to industrial consumers;service. Report main line sales to residential and these should be reported on pages 306-309, Field andcommercial consumers in total by States. Do not include Main Line Industrial Sales of Natural Gas.
Total Residential, Commercial and Industrial Residential
Lim Name of State Operating Revenues Decatherms Operating RevenuesNo.(Total of (d), (f) and (h))(Total of (e), (g) and (in
(a)(b)(c)(d)utah
Finn
FIE
NGV
GSI
Total Firm
Interruptible
IS4
Total Interruptible
Total Industrial
Residential
GSI & GSS 641 807,206
Total Residential 641 807 206
Total Utah 975 154 796 101 365,280 641 807,206
'CERC FORM NO.2 (ED. 12-88)Page 302
Name of Respondent This Report Is:Date of Report Year of Report (I) An Original (Mo, Da, Yr)QUEST AR GAS COMPANY (2) A Resubmission Dec. 31 2006
DISTRIBUTION TYPE SALES BY STATES (Continued)
2, Provide totals for sales within each State. 3. Natural gas means whether natural and oil refinery gases, natUraleither natural gas unmixed, or any mixture of natural and manufac-and coke oven gas, etc., and specifY the approx-
tured gas. State in a footnote the components of mixed gas, i.Imate percentage of natural gas in the mixtUre.
Residential (Continued Commercial Industrial
Decathenns Operating Revenues Decatherms Operating Revenues Decathenns Line
No.
(e)(f)
(g)
(h)(i)
354 828 292 013 220 521 546 462
141 647
127 609 804 282
371 178 137 419
109 155 492354828292013970110501655
05+,750 442 373 195 135 360 367217769177749
145 914 184 561270518620122341048544927
625 346 912 135 311 158 046 582
388 039 242 411 086 018 524
388 039 242,411 086 018 524
j 1
388 039 310 036 432 930 659 311 158 046 582
FERC FORM NO.2 (ED. 12-88)Page 303
Name of Respondent This
brort
Is:Date of Report Year of Report (I) An Original (Mo, Da; Yr)
QUESTAR GAS COMPANY (2) 0 A Resubmission Dec. 31 2006
DISTRIBUTION TYPE SALES BY STATES
I. Report in total for each State, sales by classes of field and main line sales to industrial consumers;
service. Report main line sales to residential and these should be reported on pages 306-309, Field and
commercial consumers in total by States. Do not include Main Line Industrial Sales of Natural Gas.
Total Residential, Commercial and Industrial Residential
Line Name of State Operating Revenues Decathenns Operating Revenues
No.(Total of (d), (f) and (h))(Total of (e), (g) and (i))
(a)(b)(c)(d)Wyoming
Finn
NGY
Total Finn
Interruptible
Total interruptible
Total Industrial
Residential
GSI 590 462GSW84618121\
Total Residential 436 643
Total Wyoming 773 092 732 976 21,436 643
31\
FERC FORM NO.2 (ED. 12-88)Page 302 a
Name of Respondent This Report Is:Date of Report Year of Report
(I) ua An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2) 0 A Resubmission Dec, 31, 2006
DISTRIBUTION TYPE SALES BY STATES (Continued)
2. Provide totals for sales within each State. 3. Natural gas means whether natural and oil refinery gases, natural
either natural gas unmixed, or any mixture of natural and manufac-and coke oven gas, etc., and specify the approx-
tured gas. State in a footnote the components of mixed gas, i.e.imate percentage of natural gas in the mixture.
Residential (Continuec Commercial Industrial
Decathenns Operating Revenues Decathenns Operating Revenues Decathenns Line
No.
(e)(f)
(g)
(h)(i)
394 067 283 599 (I)
355 599
394 067 283,599 47,355 598
669 518 108 966 185 055 30,805
669,518 108 966 185 055 805
063 585 392 565 232 410 403
971 628 363 170 184 937
026 677 284 417
054 655 040,454 250 353
054 655 104 039 642 918 232 410 40J
4()
FERC FORM NO.2 (ED. 12-88)Page 303 a
Name of Respondent This Report Is:Date of Report Year of Report (1) An Original (Mo, Va, Yr)
QUESTAR GAS COMPANY (2) A Resubmission Dec. 31 , 2006
DISTRIBUTION TYPE SALES BY STATES
1. Report in total for each State, sales by classes of field and main line sales to industrial consumers;
service. Report main line sales to residential and these should be reported on pages 306-309, Field and
commercial consumers in total by States. Do not include Main Line Industrial Sales of Natural Gas.
Total Residential, Commercial and Industrial ResidentialLinName of State Operating Revenues Decatherms Operating Revenues
No.(Total of (d), (f) and (h))(Total of (e), (g) and (i))
(a)(b)(c)(d)
Colorado
Interruptible
Total Interruptible
Total Colorado
FERC FORM NO.2 (12-96)Page 302 b
Name of Respondent This Report Is:Date of Report Year of Report
(I)
e!i
An Original (Mo, Va, Yr)
QUESTAR GAS COMPANY (2) A Resubmission Dec. 31, 2006
DISTRIBUTIONTYFE SALES BY STATES (Continued)
2. Provide totals for sales within each State. 3. Natural gas means whether natural and oil refinery gases, natural
either natural gas unmixed, or any mixture of natural and manufac-and coke oven gas, etc., and specify the approx-
tured gas. State in a footnote the components of mixed gas, i.imate percentage of natural gas in the mixture.
Residential (ContinueG Commercial Industrial
Decathenns Operating Revenues Decathenns Operating Revenues Decathenns Line
No.
(e)(f)
(g)
(h)(i)
FERC .FORM NO.(12-1)6)Page 303 b
Idaho
Industrial
14 Total Interruptible
29 Total Residential
32 Total Idaho
35 CET Adjustment - Utah & Idaho
37 Total
Name of Respondent Thi eport Is:(1) An Original
(2) A Resubmission
DISTRIBUTION TYPE SALES BY STATES
Date of Report
(Mo Yr)
Year of Report
QUESTARGAS COMPANY Dec, 31 2006
1. Report in total for each State, sales by classes of field and main line sales to industrial consumers;service. Report main line sales to residential and these should be reported on pages 306-309, Field andcommercial consumers in total by States. Do not include Main Line Industrial Sales of Natural Gas.
Total Residential, Commercial and Industrial Residential
Operating Revenues Decathenns Operating Revenues
Line Name of State
No.(Total of (d), (t) and (h))
(b)
(Total of (e), (g) and (i))
(c)(a)(d)
Interruptible
Idaho
Residential
GSI
112 127
112 127
755 251 179 909 112 127
(l,748 922)
011 934 218 105 278 165 664 355 976
cERC FORM NO.2 (12-96)Page 302 c
Name of Respondent This Report Is:Date of Report Year of Report ~IJ B An vngmal ~lVlO r rJ
QUEST AR GAS COMPANY (2) A Resubmission Dec, 31 , 2006
DISTRIBUTION TYPE SALES BY STATES (Continued)
2, Provide totals for sales within each State. 3. Natural gas means whether natural and oil refinery gases, natural
either natural gas unmixed, or any mixture of natural and manufac-and coke oven gas, etc., and specify the approx-
tured gas, State in a footnote the components of mixed gas, i.e.imate percentage of natural gas in the mixture.
Residential (Continued)Commercial Industrial
Decatherms Operating Revenues Decatherms Operating Revenues Decatherms Line
No.
(e)(f)
(g)
(h)(i)
510 284
':I
510 284
III
1':1
L,j
L'I
111 886 600 615 740
LII
111 886 600 615 740
,jV
,j I
111 886 600 615 740 510 284
,j,j
,j'l
,jo
554 579 325 783 595 641 600 543 569 081 985
,jll
,j':l
'IV
'11
'IL
'I,j
'1'1
'IJ
'10
'II
'III
'1'1
FERC FORM NO.2 (12-96)Page 303 c Next Page is 305
BLANK PAGE
(Next page is 305)
Name of Respondent This Report Is:
(I) IKI An Original
QUESTAR GAS COMPANY (2) DA Resubmission
RESIDENTIAL AND COMMERCIAL SPACE HEATING CUSTOMERS
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 , 2006
Line
No.
A residential space heating customer is a customer whose major fuel for heating is gas,Item Residential Commercial
(c)(a)
Average Number of Space Heating Customers for the Year
(Estimate if not known. Designate with an asterisk if estimated.
For Space Heating Only, Estimated Average Decatherms
Per Customer for the Year 537.
(b)
777 ,082 170
96,
Number of Space Heating Customers Added During the Year 575 339
Number of Unfilled Applications for Space Heating at End of Year None None
INTERRUPTIBLE, OFF PEAK, AND FIRM SALES TO DISTRIBUTION SYSTEM INDUSTRIAL CUSTOMERS
1. Report below the average number of interruptible, off
peak, and firm industrial customers on local distribution
systems of the respondent, and the Mcf of gas sales to
these customers for the year.
2. Interrruptible customers are those to whom service may
be interrupted under terms of the customer s gas contract
or to whom service is required to be interrupted, regard-
less of contractual arrangements in emergency periodsLine Item
by law, ordinance, directive, or other requirement of
government authority. State in a footnote the basis
on which interruptible customers are reported.
3, Off peak sales are seasonal and other sales which
do not occur during wintertime demands,
4. Report pressure base of gas volumes at 14.73 psia
at 60 degrees F.
No.(a)
Number/Amount
Interruptible Customers
Average Number of Customers for the Year
Dth of Gas Sales for the Year (Includes Transporation)
Off Peak Customers
Average Number of Customers for the Year
Dth of Gas Sales for the Year
Firm Customers
Average Number of Customers for the Year
Dth of Gas Sales for the Year
TOTAL Industrial Customers
Average Number of Customers for the Year
Dth of Gas Sales for the Year (Includes Transporation)
FERC FORM NO.2 (12-96)Page 305
BLANK PAGE
Sales and Transportation To Customers By Rate Schedule
State of Idaho
Average
No. of Average
Customers Decathenns Rate ValueDomestic & Commercial 799 174 625 808 712 742
Industrial by Rates
284 045 510
000
Total 804 179 909 756 755 251
Questar Gas Company December 31, 2006
305 d
BLANK PAGE
BLANK PAGE
Name of Respondent This
wort
Is:Date of Report Year of Report
Questar Gas Company (1) An Original (Mo, Da, Yr)
Dee 31, 2006(2) nA Resubmission
Revenues from Storing Gas of Others (Account 489.4)
1. Report revenues and Dlh of gas withdrawn from storage by Rate Schedule and In total.
2, Revenues for penalties Including penalties for unauthorized overruns must be feported on page 306,
3, Other revenues in columns (Q and (g) include reservation charges, deliverabllity charges, Injection and withdrawal charges, less revenues reflected in columns (b) through (e),
Revenues for Revenues for Revenues for Revenues for
TranslUon Tfansactlon GRI and ACA GRI and ACA
Costs and Costs andLine
Take-or-Pay Take-or-PayNo,
Rate Schedule
Amount 'Of Amount for Amount for Amount rOf
Curren! Year Previous Yeaf Cuffent Year Pfevious Year
(a)(b)(c)(d)(e)
PAGE NOT APPLICABLE
FERC FORM NO.2 (12-96)Page 306
Name of Respondent This 'EJort Is:Date of Report Year of Report
(1)" An Original (Mo, Da, Yr)
Dec 31 , 2006QuestarGasCompany(2)DA Resubmission
Revenues from Storing Gas of Others (Account 489,
4, DIh 01 gas withdrawn from storage must not be adjusted for discountIng.
5. Where transportallon services are bundled with slorage services, report only Dth wlthdfawn from storage.
Other Other Total Tolal Dekatherm of Dekalhenn 0/
Revenues Revenues Operating OperatIng Natural Gas Natural Gas
LIne Revenues Revenues
No,
Amountfor Amount for Amount fOf Amountfof Amount for Amount fOf
Current Year Previous Year Cufrent Yeaf Pfevious Year Current Year Pfevlous Year
(f)
(g)
(h)(I), 0)(k)
PA(',j:" NOT IAPPI rrARI
j:"
FERC FORM NO.2 (12-96)Paae 307
Name of Respondent
QUESTAR GAS COMPANY
This Report Is:
(1) (XI An Original
(2)DA Resubmission
Other Gas Revenues (Account 495)
I. For transactions with annual revenues of $250 000 or
more, describe, for each transaction, commissions on
sales of distributions of gas of others, compensation
for minor or incidental services provided for others
penalities, profit or loss on sales of material and
Line
No.
1 Miscellaneous revenues
2 Overriding royalties
3 Oil revenue received from Wexpro
4 Gasoline revenues
.. 15
25 TOTAL
FERC FORM NO.2 (12-96)
Description of Transaction
(a)
Page 308
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
supplies, sales of steam, water, or electricity, miscellaneous
royalties, revenues from dehydration, other processing of
gas of others, and gains on settlements of imbalance
receivables, Separately report revenues from cash out
penalties.
Revenues
(in dollars)
(b)
350
054 628
490 916
628
629 521
BLANK PAGE
Name of Respondent This ~~rt is:Date of Report Year of Report(I) An Original (Mo, Da, Yr)
OUESTAR GAS COMPANY 2) 'A Resubmission Dec,31 2006
SALES FOR RESALE NATURAL GAS (Account 483)
I, Report particulars (details) concerning sales of 5, Designate with an asterisk and footnote any sales
natural gas during the year to other gas utilities and which are other than finn sales, i.e" sales for storage
to pipeline companies for resale, Sales to each cus-etc,
tomer should be subdivided by service classifications 6, Monthly billing demands, as used in column (g), are
identified in column (c) where applicable, by rate the number of Mcf in the respective months actually used
schedule designation contained in the company s tariff,in computing the demand portion of the customer's bills;
2, Natura! gas means either natural gas unmixed, or such quantity ofMcfis multiplied by the demand portion
any mixture of natural and manufactured gas,of the tariff rate. Report in column (g) the sum of the
), In either column a or b, provide separate subhead-monthly billing demands for the number of months the
ings and totals for each State in addition to a grand customer received service or was subject to demand changes,
total for all sales to other gas utilities,7, Where consolidated bills for more than one point of
4, Enter in column b, point of delivery, the name of delivery are rendered under a FERC rate schedule, indicate
city or town and State, and such other designation the several points of delivery in column (b) and report
necessary to enable identification on maps of the remainder of the columns on a consolidated basis cor-
respondent's pipeline system,responding to the billing, Where, however, consolidated
FERC Revenue
Name of Other Gas Utility Tariff Rate Dth of Gas Sold for
Line (Designate associated Point of Delivery Schedule (Approx. Btu Year
No,companies with an asterisk)(City, town or state)Designation per Cu. Ft.)(See Instr, 5)
(a)(b)(c)(d)(e)
Colorado:
Nevada Coneneration Associates # Horseshoe Canyon
BTU
West Hiawatha
BTU
Locin Oil Dragon Trail
BTU
Encana Dragon Trail
BTU
West Douglas Creek
BTU
Big Horse Draw
BTU
Lower Horse Draw
BTU
Argali Exploration Big Horse Draw
BTU
Tom Brown Inc,Big Horse Draw
BTU
Twin Arrow, Inc,Big Horse Draw
BTU
Total Colorado 645 685 3.289.830Montana:
Croft Petroleum Kevin Sunburst
BTU
Total Montana 2048 6.412Utah:
Balcron Natural Buttes
BTU
Newfield Production Co,Castle Peak
BTU
Questar Energy Trading *Bug
BTU
Patterson
BTU
Total Utah 131New Mexico:
Dugan Production Fruitland
BTU
Yates Petroleum North Carls bad
BTU
Total New Mexico 8278 54156
FERC FORM NO.2 (ED. 12-88)Page 310
, CONFIJJENTIAL
, INFORMATION
REDACTED
This Report is;
(1) IXJ An OriginalOUEST AR GAS COMPANY '2) 0 A Resubmission
SALES FOR RESALE NATURAL GAS (Account 483)
bills for more than one point of delivery are not Ihereof for each delivery point if billing is on a non-
rendered under a FERC rate schedule, the required conjunctive basis, and show the total for each such customer
information (columns) shall be furnished for each if billing is on a conjunctive basis,point of delivery, 10, Surrunarize total sales as follows: A, Field sales sub-
8, Designate in a footnote ifBtu per cubic foot of divided by deliveries to (i) interstate pipeline companies
gas is different for any delivery poinl from that and (ii) others; B, Transmission system sales divided by
shown in the heading of column (d), deliveries to (i) interstate pipeline companies, Oi) intra-
9, For each firm sale of $25 000 or more for the state pipeline companies and gas utilities for resale under
year at each point of delivery, shown in column (i) FERC rate schedules, and (iii) others, "Field sales" means
peak day volume of gas, at pressure base indicated in sales made from wells, from points along gathering lines in
column (d), and in column (h) show the date of such gas field or production areas or from points along trans-
peak delivery. If an estimate is used for any peak mission lines within fields or production areas. "Trans-
day delivery, state the basis for such estimate, If mission sales" means sales made from points along transmlS-
deliveries are made to one customer at more than one sion lines not within gas fields or production areas,
delivery point, show the peak day delivery and date 11. Enter Mcfatl4,73 psia at 60 degrees F,Average Sum of Peak Day Delivery to CustomersRevenue Monthly Billingper Oth Demands(in cents) Oth
Name of Respondent Date of Report
(Mo, Da, Yr)
Date
(f)
Noncoincidental
(i)(Q)(h) ,
509.
313.1
, ,
284,
654,
FERC FORM NO.2 (ED. 12-88)Page 3 11 CONFIDENTIAL
INFORMATION
REDACTED
Year of Report
Dec. 31. 2006
Dth
Coincidental
(i)
Line
No.
Name of Respondent This Report is:
(I) (XJ An OriginalOUEST AR GAS COMPANY 2) 0 A Resubmission
SALES FOR RESALE NATURAL GAS (Account 483) (Continued)
1. Report partieul"", (details) concerning sales of 5. Designate with an asterisk and footnote any salesnatural gas during the year to other gas utilities and which are other than finn sales, Le" sales for storageto pipeline companies for resale. Sales to each eus- etc,
tomer should be subdivided by service classifications 6. Monthly billing demands, as used in column (g), are
identified in column (c) where applicable, by rate the number ofMcfin the respective months actually used
schedule designation contained in the companys tariff. in computing the demand portion of the customers bills;
2, Natural gas means either natural gas unmixed, or such quantity ofMcfis multiplied by the demand portion
any mixture of natural and manufactured gas, of the tariff rate, Report in column (g) the sum of the3. In either column a or b, provide separate subhead- monthly billing demands for the number of months theings and totals for each State in addition to a grand customer received service or was subject to demand changes,
total for all sales to other gas utilities, 7, Where consolidated bills for more than one point of
4, Enter in column b, point of delivery, the name of delivery are rendered under a FERC rate schedule, indicate
city or town and State, and such other designation the several points of delivery in column (b) and report
necessary to enable identification on maps of the remainder of the columns on a consolidated basis cor-
respondent's pipeline system, responding to the billing, Where, however, consolidatedFERC Revenue
Tariff Rate Dth of Gas Sold forSchedule (Approx, Btu YearDesignation per Cu, Ft.) (See Instr, 5)
Date of Report
(Mo, Da, Yr)
Year of Report
Dee, 31 2006
Line
No.
Name of Other Gas Utility
(Designate associated
companies with an asterisk)
Point of Delivery
(City, town or state)
(a)(b)(d)(e)(c)
Wyoming:
Anadarko Bruff
BTU
Shute Creek
BTU
Bruff
BTU
Shute Creek
BTU
t't'MU
BTU
Spearhead
BTU
Leucite Hills
BTU
Bruff
BTU
t't'MU
Questar E & P (Denver)
Chevron Texaco
Merit Energy
Questar E & P (Denver)
Questar Energy Trading *
BTU
Creston
BTU
Five Mile Gluch
BTU
Tierney
BTUwamsutter
BTUcnurcn Hut tes
Amoco
BTUDry t'lney
BTU
Granger
BTU
Johnson Ridge
BTU
Shute Creek
BTU
Tierney
BTU
Shute Creek
BTU
Spearhead
BTU
Spearhead
BTU
EOG Resources Inc,
Citation Oil & Gas Corp.
Western Gas Resources
Total Wvorhinl!1 239 808 8.453,874
Total I 895 865 11,804.403
** The Company does not publicly disclose individual customer account data, This data is available to
rel!ulatorv oersonnel under aooropriate orotective orders,
FERC FORM NO.2 (ED. 12-88)Page310a
CONFIDENTIAL
INFORMA TION
n",1'\ A r'T"'n
This Report is:
(I) !XI An OriginalOUESTAR GAS COMPANY 2) 0 A Resubmission
SALES FOR RESALE NATURAL GAS (Account 483)
bills for more than one point of delivery are not thereof for each delivery point ifbilling is on a non-
rendered under a FERC rate schedule, the required conjunctive basis, and show the total for each such customer
information (columns) shall be furnished for each if billing is on a conjunctive basis.point of delivery. 10, Summarize total sales as follows: A, Field sales sub-
8, Designate in a footnote ifBtu per cubic foot of divided by deliveries to (i) interstate pipeline companies
gas is different for any delivery point from that and (Ii) others; B, Transmission system sales divided by
shown in the heading of column (d). deliveries to (I) interstate pipeline companies, (Ii) intra-
9. For each firm sale of$25 000 or more for the state pipeline companies and gas utilities for resale under
year at each point of delivery, shown in column (i) FERC rate schedules, and (Iii) others, "Field sales" means
peak day volume of gas, at pressure base indicated in sales made from wells, from points along gathering lines in
column (d), and in column (h) show the date of such gas field or production areas or from points along trans-
peak delivery, If an estimate is used for any peak mission lines within lields or production areas, "Trans-
day delivery, state the basis for such estimate, If mission sales" means sales made ftom points along transmis-
deliveries are made to one customer at more than one sian lines not within gas fields or production areas,
delivery point, show the peak day delivery and date II. Enter Mcfat 14,73 psia at 60 degrees F,Average Sum of Peak Dav Deliverv to CustomersRevenue Monthly Billingper Dth Demands(in cents) Dth
Name of Respondent Date of Report
(Mo, Da, Yr)
Date
(f)
Noncoincidental
(g)
(h)
681.9
622,
FERC FORM NO.2 (ED. 12-88)Page311a
CONFIDENTIAL
INFORMATION
RED ACTED
Year of Report
Dec. 31. 2006
Dth
Coincidental
Line
No.
This Report Is:
(1) IX! An OriginalQUESTAR GAS COMPANY (2) D A Resubmission
REVENUE FROM TRANSPORTATION OF GAS OF OTHERS - NATURAL GAS (Account 489)
I. Report below particulars (details) concerning revenue asterisk, however, if gas transported or compressed is
from transportation or compression (by respondent) of other than natural gas.
natural gas for others, Subdivide revenue between trans- 3, In column (a) include the names of companies from
portation or compression for interstate pipeline companies which revenues were derived, points of receipt andand others. delivery, and names of companies from which gas was
2, Natural gas means either natural gas unmixed, or any received and to which delivered. Also specifY the
mixture of natural and manufactured gas, Designate with an Commission order or regulation authorizing such
transaction.
Name of Respondent
Line
No,
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31 2006
Name of Company and Description of Service Perfonned
(Designate associated companies with an asterisk)
(a)
Distance
Transported
(in miles)
(b)
SF Phos hates
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to SF
Phosphates at the following points:
Received
Sweetwater County, Wyo
Nucor Steel
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to Nucor
Steel at the following points:
Received
Cache County, Utah
West Oil
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to Big West Oil
at the following points:
Received
Davis County, Utah
Kennecott UCD
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to Kennecott
UCD at the following points:
Received
Salt Lake County, Utah
Holl Refinin & Marketin
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to Holly Refining
& Marketing at the following points:
Received
Davis County, Utah
US Ma nesium LLC
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to US
Magnesium LLC at the following points:
Received
Salt Lake County, Utah
TOTAL
FERC FORM NO.2 (12-96)
Delivered
Sweetwater County, Wyo
Delivered
Box Elder County, Utah
Delivered
Davis County, Utah
Delivered
Salt Lake County, Utah
Delivered
Davis County, Utah
Delivered
Salt Lake County, Utah
Page 312
CONFIDENTIAL
INFORMATION
REDACTED
This Report Is: Date of Report
(1) (XI An Original (Mo, Da, Yr)
QUESTARGAS COMPANY 1(2) AResubmission Dec, 31 2006
REVENUE FROM TRANSPORTATION OF GAS OF OTHERS - NATURAL GAS (Account 489)(Continued)
4. Designate points of receipt and delivery so that they lations, report only grand totals for all trans-
can be identified on map of the respondent's pipe line portation in columns (b) through (g) for thesystem, following regulation sections to be listed in
5. Enter Mcfat 14.73 psi a at 60 degrees F, column (a): ~284.1O2, 284.122, 284.222
6, Minor items (less than 1 000,000 mct) may be grouped. 284.223(a), 284.223(b) and 284,224, Details
for each transportation are reported in separate
annual reports required under Part 284 ofthe
Commission s regulations.
Average Revenue
per Dth of Gas
Delivered
(in cents)
(f)
Name of Respondent
NOTE: For transportation provided under Part
284 of Title 18 of the Code of Federal Regu-
Dth of Gas
Received
Dth of Gas
Delivered
(c)(d)
FERC FORM NO.2 (12-96)
Year of Report
Revenue
FERC
Tariff Rate
Schedule
Designation
(g)
(e)
Page 313
CONFIDENTIAL
INFORMATION
REDACTED
Line
No.
Name of Respondent This Report Is:
(1) IX) An Original
QUEST AR GAS COMPANY (2) D A ResubmissionREVENUE FROM TRANSPORTATION OF GAS OF OTIIERS - NATURAL GAS (Account 489)
1. Report below particulars (details) concerning revenue asterisk, however, if gas transported or compressed isITom transportation or compression (by respondent) of other than natural gas,
natural gas for others, Subdivide revenue between trans- 3. In column (a) include the names of companies fromportation or compression for interstate pipeline companies which revenues were derived, points of receipt andand others. delivery, and names of companies from which gas was2. Natural gas means either natural gas unmixed, or any received and to which delivered, Also specifY themixture of natural and manufactured gas, Designate with an Commission order or regulation authorizing such
transaction.
Date of Report
(Mo, Da, Yr)
Line
No,
Name of Company and Description of Service Performed
(Designate associated companies with an asterisk)
(a)
15 Great S L Mineral16 Respondent received exchange gas from Questar17 Pipeline and delivered exchange gas to Great SL18 Mineral at the following points:19 Received
20 Weber County, Utah
30 Utah minor items less than 1 000 000 Dth
45 TOTAL
Chevron USA
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to Chevron
USA at the following points:
Received
Davis County, Utah Delivered'
Davis County, Utah
Hill Air Force
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to Hill Air
Force at the following points:
Received
Weber County, Utah Delivered
Weber County, Utah
Delivered
Weber County, Utah
PacificollJ
Respondent received exchange gas from Questar
Pipeline and delivered exchange gas to Pacificorp
at the following points:
Received
Salt Lake County, Utah Delivered
Salt Lake County, Utah
Wyoming minor items less than 1 000 000 Dth
** The Company does not publicly disclose individual customer account data. This data is available to
regulatory personnel under appropriate protective orders,
FERC FORM NO.2 (12-96)Page 312a
CONFIDENTIAL
INFORMATION
REDACTED
Year of Report
Dec, 31, 2006
Distance
Transported
(in miles)
(b)
This Report Is: Date of Report
(1) (XI An Original (Mo, Da, Yr)OUEST AR GAS COMPANY (2) 0 A Resubmission Dec, 3 I , 2006
REVENUE FROM TRANSPORTATION OF GAS OF OTHERS - NATURAL GAS (Account 489) (Continued)
4. Designate points of receipt and delivery so that they lations, report only grand totals for all trans-
can be identified on map of the respondent's pipe line portation in columns (b) through (g) for thesystem, following regulation sections to be listed in
5, Enter Mcf at 14.73 psia at 60 degrees F. column (a): 9284.102 284.122 284.222
6, Minor items (less than 1 000 000 mct) may be grouped. 284.223(a), 284.223(b) and 284.224. Details
for each transportation are reported in separate
annual reports required under Part 284 of the
Commission s regulations,
Average Revenue
per Dth of Gas
Delivered
(in cents)
(f)
Name of Respondent
NOTE: For transportation provided under Part
284 of Title 18 of the Code of Federal Rellu-
Dth of Gas
Received
Dth of Gas
Delivered Revenue
(c)(d)(e)
086 085
FERC FORM NO.2 (12-96)
544 794 664 02 I
Page 3 I3a
CONFIDENTIAL
INFORMATION
REDACTED
Year of Report
FERC
Tariff Rate
Schedule
Designation
(g)
0.19
Line
No.
Name of Respondent This Report Is:Date of Report Year of Report
(I) 5i An Original (Mo, Da, Yr)
OUESTAR GAS COMPANY (2) D A Resubmission Dec. 31 , 2006
GAS OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported figures, explain in footnotes.
Amount for Amount for
Line Account Current Year PrevIOus Year
No.
(a)
I. PRODUCTION EXPENSES
A. Manufactured Gas Production
Manufactured Gas Production (Submit Supplemental Statement)
B. Natural Gas Production
B I. Natural Gas Production and Gatherinrr
Operation
7 7 750 Operation Supervision and Engineerinrr
751 Production Maps and Records
752 Gas Wells Expenses
753 Field Lines Expenses
754 Field Compressor Station Expenses
755 Field Compressor Station Fuel and Power
756 Field Measuring and Regulating Station Expenses
757 Purification Expenses
758 Gas Well Royalties 094 359 313 202
759 Other Expenses 812 355 139,468
760 Rents
TOTAL Operation (Enter Total ofIines 7 thru 17)906 714 452 670
Maintenance
761 Maintenance Supervision and Engineering
762 Maintenance of Structures and Improvements
763 Maintenance of Producing Gas Wells
764 Maintenance ofField Lines
765 Maintenance ofField Compressor Station EQuipment
766 Maintenance ofField Meas. and Reg. Sta. EQuipment
767 Maintenance of Purification Equipment
768 Maintenance of Drilling and Cleaning Equipment
769 Maintenance of Other Equipment
TOTAL Maintenance (Enter Total of lines 20 thru 28)
TOTAL Natural Gas Production & Gathering(Total ofIines 18 & 29)906 714 69,452 670
B2. Products Extraction
Operation
770 Operation Supervision and Engineering
771 Operation Labor
772 Gas Shrinkage
773 Fuel
774 Power,
77 5 Materials
776 Operation Supplies and Expenses
777 Gas Processed by Others
778 Royalties on Products Extracted
779 Marketing Expenses
780 Products Purchased for Resale
781 Variation in Products Inventory
(Less) 782 Extracted Products Used by the Utilitv - Credit
783 Rents
TOTAL Operation (Enter Total oflines 33 thru 46)
FERC FORM NO.2 (12-96)Page 320
Name of Respondent This Report Is:Date of Report Year of Report
(1) An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2) A Resubmission Dec. 31 , 2006
GAS OPERATION AND MAINTENANCE EXPENSES (Continued)
Amount for Amount for
Line Account Current Year Previous Year
No.(a)(c)
B2. Products Extraction (Continued)
Maintenance
784 Maintenance Supervision and Engineering
785 Maintenance of Structures and Improvements
786 Maintenance of Extraction and Refining Equipment
787 Maintenance of Pipe Lines
788 Maintenance of Extracted Products Storage Equipment
789 Maintenance of Compressor Equipment
790 Maintenance of Gas Measuring and Reg. Equipment
791 Maintenance of Other Equipment
TOTAL Maintenance (Enter Total of lines 49 thru 56)
TOTAL Products Extraction (Enter Total of lines 47 and 57)
C. Exploration and Development
Operation
795 Delay Rentals
796 Nonproductive Well Drilling
797 Abandoned Leases
798 Other Exploration
TOTAL Exploration & Development (Enter Total of lines 61 thru 64)
D. Other Gas Supply Expenses
Operation
800 Natural Gas Well Head Purchases 432 238 313 536
800.1 Natural Gas Well Head Purchases, Intracompany Transfers
801 Natural Gas Field Line Purchases
802 Natural Gas Gasoline Plant Outlet Purchases
803 Natural Gas Transmission Line Purchases 412 850 815 425,097,969
804 Natural Gas City Gate Purchases 197 589 298 128
804,1 Liquefied Natural Gas Purchases
805 Other Gas Purchases
(Less) 805.1 Purchased Gas Cost Adjustments 79,685 044 584 935)
TOTAL Purchased Gas (Enter Total of lines 67 to 75)509 165 686 443 124 697
806 Exchange Gas
Purchased Gas Expenses
807.1 Well Expenses - Purchased Gas
807.2 Operation of Purchased Gas Measuring Stations
807.3 Maintenance of Purchased Gas Measuring Stations
807.4 Purchased Gas Calculations Expenses
807.5 Other Purchased Gas Expenses
TOTAL Purchased Gas Expenses (Enter Total of lines 80 thru 84)
808,1 Gas Withdrawn from Storage - Debit 93,266 134 74;823 374
(Less) 808.2 Gas Delivered to Storage - Credit (85 888 083)(88 009,710)
809,1 Withdrawals of Liquefied Natural Gas for Processing - Debit
(Less) 809.2 Deliveries of Natural Gas for Processing - Credit
Gas Used in Utility Operations - Credit
810 Gas Used for Compressor Station Fuel - Credit (224 852)(198, I 00)
811 Gas Used for Products Extraction - Credit
812 Gas Used for Other Utility Operations - Credit (1,532 150)(1,206 348)
TOTAL Gas Used in Utility Operations - Credit (Lines 91 thru 93)(1,757 002 (1,404 448)
813 Other Gas Supply Expenses 179 394 721 157 420 227
TOTAL Other Gas Supply Exp (Lines 77, 78, 85, 86 thru 89,95)694 181 457 585 954 140
TOTAL Production Expenses (Total oflines 3, 30, 58, 65 and 96)757 088 171 655,406 810
FERC FORM NO.2 (12-96)Page 321
Name of Respondent This Report Is:Date of Report Year of Report
(1) 51 An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) D A Resubmission Dec. 31, 2006
GAS OPERA nON AND MAINTENANCE EXPENSES (Continued)
Amount for Amount for
Line Account Current Year Previous Year
No.(a)(b)(c)
2. NATURAL GAS STORAGE, TERMINALING AND
PROCESSING EXPENSES
A. Underground Storage Expenses
100 Operation
101 814 Operation Supervision and Engineering
102 815 Maps and Records
103 816 Wells Expenses
104 817 Lines Expense
105 818 Compressor Station Expenses
106 819 Compressor Station Fuel and Power
107 820 Measuring and Regulating Station Expenses
108 821 Purification Expenses
109 822 Exploration and Development
110 823 . Gas Losses
III 824 Other Expenses
112 825 Storage Well Rovalties
113 826 Rents
114 TOTAL Operation (Enter Total of lines 101 thru 113)
115 Maintenance
116 830 Maintenance Supervision and Engineering
117 831 Maintenance of Structures and Improvements
118 832 Maintenance of Reservoirs and Wells
119 833 Maintenance of Lines
120 834 Maintenance of Comuressor Station Equipment
121 835 Maintenance of Measuring and Regulating Station Equipment
122 836 Maintenance of Purification Equipment
123 837 Maintenance of Other Equipment
124 TOTAL Maintenance (Enter Total oflines 116 thru 123)
125 TOTAL Underground Storage Expenses (Total oflines 114 and 124)
126 B. Other Storage Expenses
127 Operation
128 840 Operation Supervision and Engineering
129 841 Operation Labor and Expenses
130 842 Rents
131 842.1 Fuel
132 842,2 Po-.yer
133 842,3 Gas Losses
134 TOTAL Operation (Enter Total oflines 128 thru 133)
135 Maintenance
136 843.1 Maintenance Supervision and Engineering
137 843.2 Maintenance of Structures and Improvements
138 843.3 Maintenance of Gas Holders
139 843.4 Maintenance of Purification Equipment
140 843.5 Maintenance of Liauefaction Equipment
141 843.6 Maintenance of Vaporizing Equipment
142 843.7 Maintenance ofComuressor Equipment
143 843.8 Maintenance of Measuring and Regulating Equipment
144 843.9 Maintenance of Other Eauipment
145 TOTAL Maintenance (Enter Total of lines 136 thru 144)
146 TOTAL Other Storage Expenses (Enter Total of lines 134 and 145)
FERC FORM NO.2 (12-96)Page 322
Name of Respondent This Report Is:Date of Report Year of Report
(1) 5l An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2) 0 A Resubmission Dec. 31, 2006
GAS OPERATION AND MAINTENANCE EXPENSES (Continued)
Amount for Amount for
Line Account Current Year Previous Year
No.(a)(b)(c)
147 C. Liquefied Natural Gas Tenninaling and Processing Expenses
148 Operation
149 844.1 Operation Supervision and Engineering
150 844,2 LNG Processing Tenninal Labor and Expenses
151 844.3 Liquefaction Processing Labor and Expenses
152 844.4 Liquefaction Transportation Labor and Expenses
153 844.5 Measuring and Regulation Labor and Expenses
154 844.6 Compressor Station Labor and Expenses
155 844.7 Communication System Expenses
156 844.8 System Control and Load Dispatching
157 845.1 Fuel
158 845.2 Power
159 845.3 Rents
160 845.4 Demurrage Charges
161 (Less) 845.5 Wharfage Receipts - Credit
162 845.6 Processing Liquefied or Vaporized Gas by Others
163 846.1 Gas Losses
164 846.2 Other Expenses
165 TOTAL Operation (Enter Total of lines 149 thru 164)
166 Maintenance
167 847.1 Maintenance Supervision and Engineering
168 847.2 Maintenance of Structures and Improvements
169 847.3 Maintenance of LNG Processing Tenninal Equipment
170 847.4 Maintenance of LNG Transportation Equipment
171 847.5 Maintenance of Measuring and Regulating Equipment
172 847.6 Maintenance of Compressor Station Equipment
173 847.7 Maintenance of Communication Equipment
174 847.8 Maintenance of Other Equipment
175 TOTAL Maintenance (Enter Total oflines 167 thru 174)
176 TOTAL Liquefied Nat Gas Tenninaling & Process Exp (Lines 165 & 175)
177 TOTAL Natural Gas Storage (Enter Total oflines 125, 146 and 176)
178 3. TRANSMISSION EXPENSES
179 Operation
180 850 Operation Supervision and Engineering
181 851 System Control and Load Dispatching
182 852 Communication System Expenses
183 853 Compressor Station Labor and Expenses
184 854 Gas for Compressor Station Fuel
185 855 Other Fuel and Power for Compressor Stations
186 856 Mains Expenses
187 857 Measuring and Regulating Station Expenses
188 858 Transmission and Compression of Gas by Others 916 629 361 965
189 859 Other Expenses
190 860 Rents
191 TOTAL Operation (Enter Total of lines 180 thru 190)916 629 361 965
FERC FORM NO.2 (12-96)Page 323
Name of Respondent This Report Is:Date of Report Year of Report
(1) (Jl An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2) A Resubmlssion Dec. 31 , 2006
GAS OPERATION AND MAINTENANCE EXPENSES (Continued)
Amount for Amount for
Line Account Current Year Previous Year
No.(a)(b)(c)
3. TRANSMISSION EXPENSES (Continued)
192 Maintenance
193 861 Maintenance Supervision and Engineering
194 862 Maintenance of Structures and Improvements
195 863 Maintenance of Mains
196 864 Maintenance of Comnressor Station Equipment
197 865 Maintenance of Measuring and Reg. Station Equipment
198 866 Maintenance of Communication Equipment
199 867 Maintenance of Other Equipment
200 TOTAL Maintenance (Enter Total oflines 193 thru 199)
201 TOTAL Transmission Expenses (Enter Total oflines 191 and 200)916 629 361 965
202 4. DISTRIBUTION EXPENSES
203 Operation
204 870 Operation Supervision and Emtineering 582 107 108,471
205 871 Distribution Load Dispatching 065 743 898 809
206 872 Compressor Station Labor and Expenses 866 4,493
207 873 Compressor Station Fuel and Power 224 852 198 108
208 874 Mains and Services Expenses 303,291 141 834
209 875 Measuring and Regulatinl! Station Expenses - General 194 256 290 277
210 876 Measuring and Regulatinl! Station Expenses - Industrial
211 877 Measuring & Rel!ulating Station Exp - City Gate Check Station
212 878 Meter and House Rel!ulator Expenses 459 524 438 022
213 879 Customer Installations Expenses 242 942 329 539
214 880 Other Expenses 058 191 616 172
215 881 Rents 73,711 122 204
216 TOTAL Operation (Enter Total oflines 204 thru 215)205,482 35,147 928
217 Maintenance
218 885 Maintenance Supervision 1\lld Engineerinl!457 005 467 114
219 886 Maintenance of Structures and Improvements 594 893
220 887 Maintenance of Mains 172 145 829,214
221 888 Maintenance of Compressor Station Equipment 413 725 744
222 889 Maintenance of Meas. and Reg. Sta. Equip. - General 249,981 198 519
223 890 Maintenance of Me as. and Reg. Sta. Equip. - Industrial
224 891 Maint. of Me as. & Reg. Sta. Equip. - City Gate Check Station
225 892 Maintenance of Services 691 166 305 511
226 893 Maintenance of Meters and House Regulators 386 176 281 982
227 894 Maintenance of Other EQuipment
228 TOTAL Maintenance (Enter Total oflines 218thru 227)9,445 792 189 978
229 TOTAL Distribution Expenses (Enter Total oflines 216 and 228)651 275 337 906
230 5, CUSTOMER ACCOUNTS EXPENSES
231 Operation
232 901 Supervision 129,463 280 089
233 902 Meter Reading Expenses 253 385 628,848
234 903 Customer Records and Collection Expenses 733 000 484 908235904Uncollectible Accounts 751 721 549,603
236 905 Miscellaneous Customer Accounts Expe.nses
237 TOTAL Customer Accounts Expenses (Total oflines 232 thru 236)867,581 29,943,460
FERC FORM NO.2 (12-96)Page 324
Name of Respondent This Report Is:Date of Report Year of Report
(1) rn An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) 0 A ResubmisslOn Dec. 31, 2006
GAS OPERATION AND MAINTENANCE EXPENSES (Continued)
Amount for Amount for
Line Account Current Year Previous Year
No.(a)(b)(c)
238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
239 Operation
240 907 Supervision 212 564 163 664
241 908 Customer Assistance Expenses 783,183 739,111
242 909 Informational and Instructional Expenses 1,414 155 055 928
243 910 Miscellaneous Customer Service and Informational Expenses
244 TOTAL Customer Service & Information Expenses (Lines 240 thru 243)409 902 958,703
245 7. SALES EXPENSES
246 Operation
247 911 Supervision
248 912 Demonstrating and Selling Expenses
249 913 Advertising Expenses
250 916 Miscellaneous Sales Expenses
251 TOTAL Sales Expenses (Enter Total oflines 247 thru 250)
252 8. ADMINISTRATIVE AND GENERAL EXPENSES
253 Operation
254 920 Administrative and General Salaries 163 854 101 026
255 921 Office Supplies and Expenses 251 388 13,816 044
256 (Less) (922) Administrative Expenses Transferred - Cr.(3,456 143)487,677
257 923 Outside Services Employed 524 826 930 942
258 924 Property "Insurance 194 549 047,410
259 925 Injuries and Damages 632 224
260 926 Employee Pensions and Benefits 045 897 566 371
261 927 Franchise Requirements
262 928 Regulatory Commission Expenses 298
263 (Less) (929) Duplicate Charges - Cr.
264 930,1 General Advertising Expenses
265 930.2 Miscellaneous General Expenses 2,437 845 2,489 483
266 931 Rents 687 745 762 805
267 TOTAL Operation (Enter Total lines 254 thru 266)899,593 39,251 926
268 Maintenance
269 935 Maintenance of General Plant
270 TOTAL Administrative and General Exp (Total of lines 267 and 269)899 593 251 926
271 TOTAL Gas O. & M. Exp (Lines 97 177 201 229 237 244 251 and 270)936 833 151 833 260 770
NUMBER OF GAS DEPARTMENT EMPLOYEES
I. The data on number of employees should be reported for employees in a footnote.
the payroll period ending nearest October 31, or any payroll 3, The number of employee assignable to the gas
period ending 60 days before or after October 31, 2, department from joint functions of combination utilities
the respondent's payroll for the reporting p~riod includes may be detennined by estimate, on the basis of employee
any special construction personnel, includ~ such employees equivalents. Show the estimated number of equivalent
on line 3, and show the number of such special construction employees attributed to the gas department from joint
functions,
Payroll Period Ended (Date)12/31/06
Total Regular Full-Time Employees 119
Total Part-Time and Temporary Employees
Total Employees 174
FERC FORM NO.2 (12-96)Page 325 (Next page is 328)
Name of Respondent This Report is:
( I) IX) An Original
QUESTAR GAS COMPANY (2) 0 A Resubmission
EXCHANGE GAS TRANSACTIONS (Account 806, Exchange Gas)
1. Report below particulars (details) concerning the tions (less than 100 000 Mct) may be grouped.
gas volumes and related dollar amounts of natural gas 2. Also give the particulars (details) called for concern-
exchange transactions during the year. Minor transac- ing each natural gas exchange where consideration
Line
No.
45 TOTAL
FERC FORM
Date of Report
(Mo, Da, Yr)
Year of Report
Dec. 31, 2006
Name of Company
(Designate associated companies
with an asterisk)
Exchange Gas Received
Debit
Point of Receipt Dth (Credit)
(City, state, etc.Account 242
NO ACTIVITY IN 2006
NO.2 (12-96)Page 328
Name of Respondent This Report Is: Date of Report
(1) IXIAn Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) ().. Resubmission Dec. 31, 2006
EXCHANGE GAS TRANSACTIONS (Account 806, Exchange Gas) (Continued)
was received or paid in perfonnance of gas exchange 4, Indicate points of receipt and delivery of gas so thatservices, they may be readily identified on a map of the respon-
3, List individually net transactions occurring during dent's pipeline system.
the year for each rate schedule.
Exchange Gas Delivered
Year of Report
Excess
Point of Delivery
(City, state, etc.
Debit
(Credit)
Account 174
Dth
Received or
Delivered
Debit
(Credit)
Account 806
Dth
NO ACTIVITY IN 2006
FERC FORM NO.2 (12-96)Page 329
Line
No.
Name of Respondent This Report Is:
(I) X An OriginalQUESTAR GAS COMPANY (2) A Resubmission
EXCHANGED GAS TRANSACTIONS (Account 806, Exchange Gas) (Continued)
5. Furnish any additional explanations needed to 6, Report the pressure base of measurement of gas
further explain the accounting for exchange gas volumes at 14.73 psia at 60 F.
transactions.
, 5
3 I
45 TOTAL
FERC FORM NO.
Line
No,
Date of Report Year of Report
(Mo, Da, Yr)
Dec. 31 2006
Charges Paid
or Payable by Respondent
Revenues Received or
Receivable by Respondent
FERC
Tariff
Rate
Schedule
Identifi-
cation
Name of Company
(Designate associated companies
with an asterisk)
Amount Account Amount Account
NO ACTIVITY IN 2006
1 (12-96)Page 330
Name of Respondent This Report Is:Date of Report Year of Report
(I) 51 An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2) 0 A Resubmission Dec. 31, 2006
GAS USED IN UTILITY OPERATIONS
I, Report below details of credits during 2. If any natural gas was used by the respondent for
the year to Accounts 810, 811 and 812 which a charge was not made to the appropriate operat-
ing expense or other account, list separately in colunm
(c) the Dth of gas used, omitting entries in columns (d).
Natural Gas Manufactured Gas
Account Gas Used Amount Gas Used Amount
Line Charged (Dth)(Dth)
No.Purpose for Which Gas Was Used Credit Credit
(in dollars)
(a)(b)(c)(d)(f)
(g)
810 Gas used for Compressor
Station Fue/-401 011 224 852
811 Gas used for Products
Extraction-
Gas Shrinkage and Other Usage
in Respdnt's Own Proc.
Gas Shrinkage, Etc, for Respdt'
Gas Processed by Others
812 Gas used for Other Uti\. Opers-
Cr (Rpt sep. for each prill, use,
Group minor uses)
Distribution & General 401 190,496 532 150
* Questar Gas does not use
Acct. 811
TOTAL 220 507 757 002
FERC FORM NO, 2 (ED. 12-88)Page 331
Name of Respondent
Line
No,
This Report Is:
(l) IX! An OriginalQUESTAR GAS COMPANY (2) 0 A Resubmission
TRANSMISSION AND COMPRESSION OF GAS BY OTHERS (Account 858)
1. Report below particulars (details) concerning items (less than 1 000 000 Mct) must be grouped.
gas transported or compressed for respondent by others 2. In colwnn (a) give name of companies to which payments
equalling more than 1 000 000 Mcf (Bct) and amounts were made, points of delivery and receipt of gas, names ofof payments for such services during the year. Minor companies to which gas was delivered and trom whichName of Company and DistanceDescription of Service Perfonned Transported(Designate associated companies with an asterisk) (in miles)(a) (b)
Dec. 31 2006
Date of Report
(Mo, Da, Yr)
Year of Report
2 Amoco / BP Energy
Kern River transports trom Amoco to Mountain Fuel's City Gates.
5 Cheveron/Texaco
Prior Period Adjustment and Exchange Differential
8 Duke
11 Wexpro *12 Transportation Reimbursement on PPMU Gas
14 Kern River
17 Questar Pipeline Company *
20 c.I.G,
23 Questar Energy Trading
24 URC Reimbursement to QGC for Trans ofPPMU Exchange
41 *** Gas received differs trom gas delivered due to transmission loss.
43 TOTAL
Various
. ~Q05 ;:;f.i;i~~c*4j4ti;'iji~nfK~!tJ~~#ii Various
Various
Various
Various
Various
Various
Various
Northwest Pipeline
Firm Transportation Various
** The Company does not publicly disclose individual customer account data. This data is available toregulatory personnel under appropriate protective orders.
FERC FORM NO.2 (12-96)Page 332
Name of Respondent This Report Is:Date of Report Year of Report
(I) i:An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2) 0 A Resubmission Dec. 3 1, 2006
COMPRESSOR ST A nONS
I. Report below pariculars (details) concerning com-.such stations are used. Relatively small field compressor
pressor stations. Use the following subheadings: field stations may be grouped by production areas. Show the
compressor stations, products extraction compressor number of stations grouped. Designate any station held
stations, transmission compressor stations, distribution under a title other than full ownership. State in a foot-
compressor stations, and other compressor stations.note the name of owner or co-owner, the nature of respon-
2. For column (a), indicate the production areas where dent's title, and percent of ownership, if jointly owned.
Number
of Plant Cost.
Line Name of Station and Location Employees
No.
(a)(b)(c)
1 Distribution Compressor Stations
2 .
3 Utah
4 Weber County
5 LW. Allen 1,180,183
6
7 Salt Lake County
8 Lark Station 1,002,422
9
10 Sanpete County
11 Indianola 1,765,311
12
13
14
15 Total Distribution 3947,916
16
17
18 Production and Gathering
19 Ace Compressor Plant 29,304
20 Birch Creek #1 288,443
21 Birch Creek #2 39,943
22 Total Production and Gathering 357,691
23 Total 4305607
24
25
26
27
28
29
30
31
32
33 * Records not available
34 A - Fuel or power (d) and Gas for Compressor Fuel (0 is supplied by producers
35 where it is used upstream of delivery point.
36 B - Compressor was only run for testing purposes.
37
38
FERC FORM NO.2 (12-96)Page 508
Name of Respondent This Report Is:Date of Report Year of Report
(I) i: An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2) D A Resubmission Dec. 31; 2006
COMPRESSOR ST A nONS (Continued)
Designate any station that was not operated during the tion during the yea and show iri a footnote the size of each
past year. State in a footnote whether the book cost of such unit, and the date each such unit was placed in operation.
such station has been retired in the books of account,or 3. For column(d), include the type offuel or power, if
what disposition of the station and its book cost are other than natural gas. If two types of fuel or power ar
contemplated: Designate any compressor units in trans-used, show separate entrie& for natural gas and the other
mission compressor stations installed and put into opera-fuel or power.
Expenses (Except dep~eciation and taxes)Operation Data
Total Noof
Compressor Comprs.Date
Fuel or Power Other Gas for Compressor Hours of Operated of Line
Fuel Dth Operation at Time Station No.
During of Station Peak
Year Pea
(d)(e)(f)(ir)(h)(i
1
2
3
4
3,424 1 I 09/12/06 5
6
7
7,899 1 0 05/17/06 8
9
10
166,719 4,618 22,248 5,057 1 11/30l06 11
12
13
14
166,719 15,941 22,248 5,059 -"2 15
16
17
18
A A ***19
A A ***20
A A ***21
".22
166719 15941 22248 5059 2 23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
FERC FORM NO.2 (12-96)Page 509 Next Page is 5 12
Name of Respondent This Report is:Date of Report Year ofRep'?rt
(1) ~ An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY 2) riA Resubmission Dec. 31, 2006
GAS STORAGE PROJECTS
1. Report parcular (details) for total gas storage projects.3. Give parcular (details) of any gas stored for the benefit
2. Total storage plant (column b) should agree with of another company under a gas exchange arangement or
amounts reported by the respondent in Accts 350.1 to on basis of purchase and resale to other company. Designte
364.8 inclusive (pages 206-207).with an asterisk if other company is an associated company.
Item Total
Line Amount
No.(a)(b)
1 Natual Gas Storage Plant
2 Land and Land Rights
3 Strctures and Improvemen~
4 Storage Wells and Holders
5 Storage Lines
6 Other Storage Equipment
7 TOTAL (Enter Total of Lines 2 Th 6)
8 Storage Expenses
9 Operation
10 Maintenance
11 Rents
12 TOTAL (Enter Total of Lines 9 Thr 11)
13 Storage Operations (In Dth)
14 Gas Delivered to Storage
15 Januar 134,000
16 Februarv 471,250
17 March ' 274,255
18 Avril 1,353,907
19 Mav 2,082,306
20 June 2,020,429
21 July 3,597,730
22 August 2,390,054
23 September 1,978,283
24 October 1,942,120
25 November 1,475,349
26 December ....... 635,214
27 TOTAL (Enter Total of Lines 15 Th 26). . 18,354,897.00
28 Gas Withdrawn from Storage
29 Januar 2,201,000
30 Februar 2,950,458
31 March 2,188,346
32 Avril 1,498,866
33 Mav 309,422
34 June 146,453
35 July 1,001,684
36 August 833
37 September 1,193,183
38 October 1,429,367
39 November 1,671,417
40 December 3,635,502
41 TOTAL (Enter Total of Lines 29 Thr 40)18,226,531.00
FERC FORM NO.2 (12-96)Page 512
Name of Respondent This Report is:Date of Report Year of Report
(1)fK An Original (Mo, Da, Yr)
QUEST AR GAS COMPANY (2)o A Resubmission Dec. 31, 2006
GAS STORAGE PROJECTS (Continued)
Line Item Total "
No.Amount
(a)b
Storage Operations (In Dth)
42 Top or Working Gas End of Year 10,461,855
43 Cushion Gas (Including Native Gas).0
44 Total Gas in Reservoir (Enter Total of Line 42 and Line 43)10,461,855
45 Certified Storage Capacity
46 Number ofInjection - Withdrawal Wells
47 Number of Observation Wells
48 Maximum Day's Withdrawl from Storage
49 Date of Maximum Days' Withdrawal
50 LNG Terminal Companies (In Mcf).
51 Number of Tanks
52 Capacity of Tanks
53 LNG Volumes
54 a) Received at "Ship Rail"
55 b) Transferred to Tans
56 c) Withdrawn from Tan
57 d) "Boil Ofr' Vaporization Loss
58 e) Converted to Mcf at Tailgate of Terminal
-'
FERC FORM NO.2 (12-96)Page 513
Name of Respondent This oo0rt Is:Date of Report Year of Report
Questar Gas Company (1) An Onginal (Mo, Da. Yr)Dec3I,2006
(2) 0 A Resubmlssion
Transmission Lines
1. Repor below, by state, Ihe total miles of transmission lines of each transmission system operated by respondent at end of year.
2. Repor serately any lines held under a title other than IuD ownership. Designate suc lies wit an asterik, In column (b) and In a Ioolnotestte th name 0/ oWner, or cowner,
nature of respndenrs lilie, and percnt ownership If jointly owned.
3. Report separately any line that was not operated dunng lfe past year. Enter in a footnote th detaBs and stte wtelher the book cos! 01 suc a line, or any port threof, has be
retired In Ihe books of account, or what disposition of the line and lis book costs are contemplated.
4. Repor the number of miles of pipe to One deciml point
Designation (Idenlification).Total Mils
Une of lie or Group of Lines of Pipe
No.(a)(b)(0)
1
.
2
3
PME NOT APPLICABLE
4
5
6
7
8
-
9 .;.d.
10
11
12
13
14
15 ,
16
17
18
19
20
21
22
23
24
25
.FERC FORM NO.2 (12-96)Page 514
BLANK PAGE
(Next page is 518)
Name of Respondent This ~ort Is:
(1) KJAn Onginal
(2) DA Resubmission
Transmission System Peak Deliveries
1. Report belo the total transission system deliveries of gas (in Dth), excluding deliveries to storage, lor the period of system pek deliveries indicated below, during the 12 months
embracing the heatlg season overlapping the year's end lor which this repo is submi. The season's peak normany win be reached before the due date of this repo Apii 30, whic
permits inclusion of the peak Information required on this page. Add rows as necessary to report an data. Number additional rows 6.01, 6.02, etc. "¡
Date of Report
(Mo, Da, Yr)
Year of Report
Questar Gas Company Dec 31,2006
Line
No.
Desciption
Dth 01 Gas
Delivered to
Interstate Pipelines
(b)(d)
Dth of Gas
Defivered to
Oters
(c)
Totl
(b) + (c)
SECTION A: SINGLE DAY PEAK DELIVERIES ~1
2
3
4
5
6
7 TOTAL
8" Volumes of gas Withdrawn form Storage under Storage Contract
9 No-Notice Storage
10 Other Firm Storage
11 Interrptible Storage
12
13 TOTAL
14 Oller Operational Activities
15 Gas Witdrawn fr Storage lor System Operations
16 Reduction in Line Pack
17
18 TOTAL
19 SECTION B: CONSECUTIVE THREE-DAY PEAK DRIVERIES
20
21 Volumes of Gas Traported
22 No-Notice Transportation
23 Other Firm Transportation
24 Interrptible Transportion
25
26 TOTAL
27 Volumes of Gas Withdrawn from Storage under Storage Contract
28 No-Notice Storage
29 Other Firm Storage
30 Interrptible Storage
31
32 TOTAL
33 Oller Operational Activties
34 Gas Withdrawn from Storage for System Operations
35 Reduction in Line Pack
36
37 TOTAL
I~
PAGE NOT APPLICABLE
FERC FORM NO.2 (12.96)Page 518
Name of Respondent ThiS~rIS:Date of Report Y èar of Report
Questàr Gas Company (1) An Onginal (Mo. Da, Yr)
DedI, 2006 (2) A Resúbmission
Auxilary Peaking Facilties
1. Report below auxilary facilities of the respondent lor meeti seasonal peak demands on the repondenfs system, such as underground storage project, liquefied petrolum gas
Installations, gas liquefacton plants, oU gas sets, etc
2. For column (c), for underground storage 'projecs, report the delivery cacity on February 1 of the heating season overlapping the year-end for which this reprt is submitted.
For other facilities, report the raled maxium dail delivery caacitis.
3. For column (d), Include or excude (as approprite) the cot of any plant used jointiy wit another faciity on the basis of predominant use, unless the auxiliary peaking faciDty Is a
separate plant as cotemplated by generallnstru 12 of the Uniform System of Accunts.
Maximum Dail Cost of Was Facility
location of Typ of Deliery Capaci Faciit Operated on Day
Line Facility Facility of Faelßty (in dollars)of Highest
No.Dth Transmis Peak
(a)(b)(c)(d)Delivery
1
2 .
3
4
5
6 PAGE NOT APPLICABLE
7
8
9
10
11
12
13
14 .
15 .
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
FERC FORM NO.2 f12-96\Paae 519
Name of Respondent This Report Is:Date of Report Year of Report
(1) IXI An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) D A Resubmission Dec. 31, 2006
TRANSMISSION AND COMPRESSION OF GAS BY OTHERS (Account 858) (Continued)
received. Points of delivery and receipt should be delivered, explain in a footnote the reason for difference
so designated that they can be identified readily , uncompleted deliveries, allowance for transmission
on map of respondent's pipeline system.loss, etc.
3. If the Mcf of gas received differs from the Mcf
Dth of Dth of Amount of Amount per Dth
Gas Delivered Gas Received Payment of Gas Received Line
(in dollars)(in cents)No,
(c)(d)(e)(f)
~~~irlitg~~f~auf:;
128 058 237 129 876 508 916 629 48.443
FERC FORM NO.2 (12-98)Page 333
CONFIDENTIAL
INFORMATION
REDACTED
Name of Respondent This Report Is:
(1) !XI An Original
(2) 0 A Resubmlssion
OTHER GAS SUPPLY EXPENSES (Account 813)
Report other gas supply expenses by descriptive titles which expenses separately. Indicate the functional classification
clearly indicate the nature of such expenses, Show maintenance and purpose of property to which any expenses relate.Description Amount
(in dollars)
(b)
970 132
600 593
865 849
150 144 884
711
929,796
179 627
Date of Report
(Mo, Da, Yr)
QUESTARGAS CO~ANY
Line
No.
50 TOTAL
FERC FORM NO.2 (12-96)
(a)
Storage Services
Hedging Costs
Gas Processing
Operator Service Agreement
Company Owned Production Costs (WY)
Gas Costs - CO2 Gas Processing (UT)
Gas Costs - CO2 Gas Processing (WY)
Page 334
Year of Report
Dec. 31, 2006
173.771591
Name of Respondent This Report Is:
(l) ~ An Original
QUESTAR GAS COMPANY (2) 0 A ResubmisslOn
MISCELLANEOUS GENERAL EXPENSES (Account 930.2) (Gas)
Industry association dues
Experimental and !!eneral research expenses
Publishing and distributing infonnation and reports to stockholders; trustee, registrar
and transfer agent fees and expenses, and other expenses of servicing outstanding
securities of the resDondent
Other expenses (items of $5 000 or more must be listed separately III this column showing
the (1) purpose, (2) recipient and (3) amount of such items. Amounts of less than $5 000
may be grouped by classes if the number of items so grouped is shown)
5 DIRECTORS FEES & EXPENSE AMOUNT
18 American Gas Association
20 American Red Cross
22 Directors Insurance
24 Research & Development
26 Directors/Officers Deferred Stock Revaluation
28 R & D Delta Funds
30 Miscellaneous
40 TOTAL
Date of Report
(Mo, Da, Yr)
R. D. Cash
W. W. Hawkins
D. L. Leavitt
G. G. Michael
H. H. Simmons
189
470
875
505
819
FERC FORM NO.2 (12-96)Page 335
Year of Report
Dec. 31 , 2006
858
242 209
150 000
415 067
98,255
800
442,400
255
2,437 845
This Report Is: Date of Report
(1) (XI An Original (Mo, Da, Yr)QUESTARGAS COMPANY (2) D A Resubmission Dec. 31 2006
DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (Accounts 403 , 404.1 , 404., 404.3, 405)
(Except Amortization of Ac uisition Adjustments)
1. Report in Section A the amounts of depreciation the intervals between the report years (1971 , 1974
expense, depletion and amortization for the accounts and every fifth year thereafter).
indicated and classified according to the plant Report in column (b) all depreciable plant balances tofunctional groups shown. which rates are applied and show a composite total (If
2. Report all available infonnation called for in more desirable, report by plant account, subaccount or
Section B for the report year 1971 , 1974 and every functional classifications other than those pre-printed
fifth year thereafter. Report only annual changes in in column (a). Indicate at the bottom of Section B the
Section A, Summary of Depreciation, Depletion, and Amortization Charges
Amortization and
Depletion ofProduc-
ing Natural Gas Land
and Land Rights
(Account 404.
(c)
Amortization of
Underground Storage
Land and Land Rights
(Account 404.
(d)
Name of Respondent
Line
No.
Depreciation
Expense
(Account 403)Functional Classification
(a)(b)
Intangible plant
Production plant, manufactured gas
Production and gathering plant
natural gas
Products extraction plant
Underground gas storage plant
Other storage plant
Base load LNG tenninating and
processing plant
Transmission plant
Distribution plant
10 General plant
11 Common plant-gas
25 TOTAL
216 947 107
231 970
368 857
817 774 107
FERC FORM NO.2 (12-96)Page 336
Month of Report
Name of Respondent This Report Is: Date of Repoort
(1) rn An Original (Mo, Da, Yr)QUESTARGASCOMPANY (2) D AResubmission Dec. 31 2006
DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT (Accounts 403, 404.1 , 404., 404.3, 405)
(Except Amortization of Acquisition Adjustments) (Continued)
manner in which column (b) balances are obtained. If average to estimated gas reserves.
balances, state the method of averaging used. For column 3., If provisions for depreciation were made
(c) report available infonnation for each plant functional during the year in addition to depreciation
classification listed in column (a). If composite depre- provided by application of reported ra,tes
ciation accounting is used, report available infonnation state at the bottom of Section B the amounts
called for in columns (b) and (c) on this basis. Where the and nature of the provisions and the plant items
unit-of-production method is used to detennine de reciation to which related.
Section A. Summary of Depreciation, Depletion, and Amortization Charges
Year of Report
Amortization of Other
Limited-tenn
Gas plant
(Account 404.3)
(e)
Amortization of Other
Gas Plant
(Account 405)
(f)
Total Functional Classification
Line
No.
(g)
(a)
248 054
Intangible plant
Production plant, manufactured gas
Production and gathering plant
natural gas
Products extraction plant
Underground gas storage plant
Other storage plant
Base load LNG tenninating and
processing plant
Transmission plant
Distribution plant
General plant
Common plant-gas
231 970
368 857
12 .
848 881 TOTAL
FERC FORM NO.2 (12-96)Page 337
Name of Respondent This Report Is:
(1) * An OriginalQUEST AR GAS COMPANY 2 A Resubmission
DEPRECIATION, DEPLETION, AND AMORTIZATION OF GAS PLANT
Section B. Factors Used in Estimatin De reciation Char es
Date of Report
(Mo, Da, Yr)
Year of Report
Line
No.Functional Classification
(a)
Production and Gathering Plant
Offshore
Onshore
Underground Gas Storage Plant
Transmission Plant
Offshore
Onshore
General Plant
...
Depreciation
Plant Base
(Thousands)
(b)
Applied
Depr. Rate(s)
(Percent)
(c)
250
$.109 per MCF
3% to 10%
121 516 5% to 25%
Notes to Depreciation, Depletion and Amortization of Gas Plant
Amortization and Depletion of Producing and Land Rights Account 4041
Basis for Amortization - Unit of Production
Basis for Amortization - Estimated service life
FERC FORM NO.2 (12-96)Page 338
BLANK PAGE
(Next page is 340)
This Report Is: Date of Report
(I) lXI An Original (Mo, Da, Yr)
QUESTARGAS COMPANY (2) D A Resubmission Dec. 31 , 2006
PARTICULARS CONCERNING CERTAIN INCOME DEDUCTIONS AND INTEREST CHARGES ACCOUNTS
Report the information specified below, in the order (c) Interest on Debt to Associated Companies (Account
given, for the respective mcome deduction and interest 430)--For each associated company that incuITed interestcharges accounts, on debt during the year, indicate the amount and
(a) Miscellaneous Amortization (Account 425)-- interest rate respectively for (a) advances on notes, (b)
Describe the nature of items included in this account advances on open account, (c) notes payable, (d) accounts
the contra account charged, the total of amortization payable, and (e) other debt, and total interest. Explain
charges for the year, and the period of amortization. the nature of other debt on which interest was incuITed
(b) Miscellaneous Income Deductions--Report the during the year.
nature, payee, and amount of other income deductions (d) Other Interest Expense (Account 431 )--Report
for the year as required by Accounts 426,, Donations; details including the amount and interest rate for
426., Life Insurance; 426,, Penalties; 426.4, Ex- other interest charges incuITed durmg the year.
penditures for Certain Civic, Political and Related
Activities; and 426., Other Deductions, of the Uniform
System of Accounts, Amounts of less than $250 000 may
be grouped by classes within the above accounts.Line ItemNo. (a)
Miscellaneous Amortization - Account 425
Gas Plant Aquisition Adjustments - Account 425
17 Interest on Debt to Associated Com anies - Account 43018 Questar Corporation
FERC FORM NO.2 (12-96)
Name of Respondent
Total Account 425
Miscellaneous Other Income Deductions - Account 426
Donations - Account 426. I
Life Insurance - Account 426.
Expenditures for Certain Civic, Political & Related Activities - Account 426.4
Other Donations, Dues, Etc, - Account 426,
Appliance Financing Program - Revenue and Expenses - Account 426,
Total Account 426
Total Account 430
Other Interest Ex ense - Account 431
Interest on Gas Balance Account
Bank Service Charges and other Miscellaneous Interest Charges
Total Account 431
Page 340
Year of Report
Amount
289 758
289758
378 195
378 195
793 564
137 992
1931556
BLANK PAGE
(Next page is 350)
Name of Respondent This
&:rort is: IDate of Report
Year of Report (1) An Original (Mo Yr)OUESTAR GAS COMPANY 1(2) D A Resubmission Dec. 31 2006
DISTRIBUTION OF SALARIES AND WAGES
Report below the distribution of total salaries and wages for the year.Segregate amounts originally charged to clearing accounts to Utility
Departments, Construction, Plant Removals, and Other Accounts, and enter such amounts in the appropriate lines and columns provided.
In detennining this segregation of salaries and wages originally charged to clearing accounts, a method of approximation
giving substantially colTect results may be used, When reporting detail of other accounts, enter as manyrows as necessary numbered sequentially starting with 74., 74.02. etc.
Direct Payroll Allocation of
Distribution Payroll Charged Total
for ClearingLineClassificationAccountsNo.(a)
Electric
Operation
Production
Transmission
Distribution
Customer Accounts
Customer Service and Infonnational
Sales
Administrative and General
TOTAL Operation (Total of lines 3 thru 9)
Maintenance
Production
TransmissIOn
Distribution
Administrative and General
TOTAL Maintenance (Total of lines 12 thru 15)
Total Operation and Maintenance
Production (Total of lines 3 and 12)
Transmission (Total of lines 4 and 13)
Distribution (Total ofIines 5 and 14)
Customer Accounts (Line 6)
Customer Service and Infonnational (Line 7)
Sales (Line 8)
24,Administrative and General (Total of lines 9 and 15)
TOTAL Operation and Maintenance (Total of lines 18 thru 24)
Gas
Ooeration
Production-Manufactured Gas
Production-Natural Gas (Including Exploration and Development)
Other Gas Supply
Storage, LNG Tenninaling and Processing
TransmIssion
Distribution 17 032 422 17 032 422Customer Accounts.10330056 10.330056Customer Service and Infonnational 7480774 7.480774Sales
Administrative and General (See Note A)II 574.764 615.614 14190378TOTAL Operation (Total of lines 28 thru 37)46418017 2615614 49 033 631Maintenance
Production-Manufactured Gas
Production-Natural Gas (Including Exploration and Development)
Other Gas Supply
Storage, LNG Tenninaling and Processing
Transmission
Distribution 4 931 317 4931 317Administrative and General
TOTAL MaintenanceCTotal of lines 40 thru 46)4 931 317 4931 317FERC FORM NO.2 (12-96)Page 354
Name of Respondent Year of Report
Dec. 31 2006
Totalb,
21 963 740
10330056
7480774
21 963 740
10330056
7 480 774
492,110
624 690
923
285 524 206,587
624 690
923
9117723
72 176 878
285 524
1 939 137
8832 199
74 116015
Page 355
BLANK PAGE
(Next page is 357)
Name of Respondent This Report Is:Date of Report Year of Report
(1) ex An Original (Mo, Da, Yr)
OUESTAR GAS COMPANY ' (2) A Resubmission Dec, 31, 2006
CHARGES FOR OUTSIDE PROFESSIONAL AND OTHER CONSULTATIVE SERVICES
1. Report the information specified below for all 426.4 Expenditures for Certain Civic, Political and
charges made during the year included in any account Related Activities,
(including plant accounts) for outside consultative and (a) Name and address of person or organization
other professional services. (These services include rendering services.
rate, management, construction, engineering, research (b) description of services received during year and
financial, valuation, legal, accounting, purchasing,project or case to which services relate
advertising, labor relations, and public relations, ren-(c) basis of charges
dered the respondent under written or oral arrangement,(d) total charges for the year, detailing utility
for which aggregate payments were made during the year to department and account charged.
any corporation, partnership, organization of any kind, or 2. For any services which are of a continuing nature
individual (other than for services as an employee or for give the date and term of contract and date of Commis-
payments made for medical and related services) amounting sion authorization, if contract received Commission
to more than $25 000, including payments for legislative approval.
services exceot those which should be reoorted in Account 3, Desi!!:nate with an asterisk associated companies,
NAME & ADDRESS SERVICE ACCOUNT AMOUNT
Allied Collection Service Collections 401 106 272.
PO Box 3730 Logan
Allied Waste Services #864 Garbage Disposal 184 46.536,
PO Box 78429 Phoenix
Blue Stakes of Utah Surveying 401 226 340.
PO Box 1517 Draper
Bonneville Billing and Collections Collections 401 244 337,
PO Box 309 Ogden
Cazier Excavating Inc Construction 107 785.419.
132 West 13490 South Draper
Chad Husband Construction, Inc,Construction 107 131 660.
PO Box 26705 Salt lake City
Clyde Snow Sessions & Swenson Legal 107 880.
201 South Main Street Salt Lake City
Coast to Coast USA NDE Services System Integrity 182 553 145,
22781 Airport Road NE Bldg D-Aurora
Concentric Energy Advisors Legal 401 40,754.43
313 Boston Post Road West Suite 210 Martborough
Cook-Sanders & Associates. LLC Surveying 107 267,259.
331 South Rio Grande Avenue Salt Lake City
D R Griffin & Associates Inc Line Inspection 107 306,
1414ElkStreet, Sulte202 Rock Springs
Dan Jones & Associates Customer Service Sur 401 600,
515 South 700 East Ste 3h Salt lake City
Don Calvert Painting and Special Coating Contracting 107 177 651,
13431 South 7530 West Herriman
Dunn & Dunn legal 401 742.
505 East 200 South 2nd Floor Salt Lake City
EBS Management Consulting Services Management Consultil 401 62,289.
POBox110 Foxborough
ELM locating & Utility Services Surveying 401 921 818,
PO Box 16780 Missoula
Environ Intemational Corp Environmental Consul'401 146,075,
PO Box 8500-1980 Philadelphia
Environmental System Research Institute Engineering 107 418 106,
380 New York Street Los Angeles
Espial Consulting llC Rates 401 106 562,
1467 Wilton Way Salt lake City
Express Recovery Services Inc Collections 401 224 917,
PO Box 26415 Salt lake City
Global Insight Inc Rates 401 133,
PO Box 845730 Boston
Golder Associates Inc Engineering 107 564,
POBox 102609 Allanta
Gramoll Construction Company Construction 107 043.
175 West 1100 North North Salt lake
FERC FORM NO.2 (ED. 12-87)Page 357
Name of Respondent Thigport Is:Date of Report Year of Report (I) An Original (Mo, Da, Yr)
QUESTAR GAS COMPANY (2) . A Resubmission Dee, 31, 2006
CHARGES FOR OUTSIDE PROFESSIONAL AND OTHER CONSULTATIVE SERVICES
1, Report the information specified below for all 426.4 Expenditures for Certain Civic, Political and
charges made during the year included in any account Related Activities,
(including plant accounts) for outside consultative and (a) Name and address of person or organization
other professional services, (These services include rendering services.
rate, management, construction, engineering, research (b) description of services received during year and
financial, valuation, legal, accounting, purchasing,project or case to which services relate
advertising, labor relations, and public relations, ren-(c) basis of charges
dered the respondent under written or oral arrangement (d) total charges for the year, detailing utility
for which aggregate payments were made during the year to department and account charged.
any corporation, partnership, organization of any kind, or 2. For any services which are of a continuing nature
individual (other than for services as an employee or for give the date and term of contract and date of Commis-
payments made for medical and related services) amounting sion authorIzation, if contract received Commission
to more than $25 000, including payments for legislative approval.
services except those which should be reported in Account 3, Designate with an asterisk associated companies,
NAME & ADDRESS SERVICE ACCOUNT AMOUNT
Holland & Hart Legal 401 38,176.46
555 17th Street Suite 3200 Denver
Holme Roberts & Owen LLP Legal 107 135,005,
PO Box 1618 Denver
Intermountain Drug Testing LC Human Resources 401 242,
PO Box 240 Salt Lake City
J B R Enviromental Consultants Inc Environmental Consulti,107 897,
8160 Soulh Highland Drive#a-4 Sandy
J D Power and Associates Customer Service SUM 401 000,
PO Box 512778 Los Angeies
Kassln9 Andrews & Associates Advertising 401 350 743,
360 East 4500 South Ste 6 Salt Lake City
Kiefner and Associates, Inc,System Integrity 182 153 240,
585 Scherers Court Worthington
Legislative Executive Consulting Legal 401 153,
American Towers Salt Lake City
LEI Consulting Engineers & Surveyors Inc Surveying 107 255,
3302 North Main Street Spanish Fork
Maverick Paving Construction 107 516,
PO Box 631 Ogden
Mears/CPG LLC System Integrity 182 716 063,
4500 North Mission Road Rosebush
Microsoft Corporation Information Technology 107 745,
123 Wright Brothers Drive Salt Lake City
Niels Fugal & Sons Company Construction 107 551,841,
PO Box 650 Pleasant Grove
o.MC International, L.LC,LIne Inspection 107 840,
p, 0., Box941233 Houston
One Call Locators LId,Surveying 401 193 141,
PO Box 16780 Missoula
Outsource Receivables Managemenl Collections 401 113 908,
POBox 166 Ogden
Par3 Communications Inc Collections 401 58,135,
100 South Kin9 Street Suite 100 Seattle
Paragon Partners Ltd Right of Way Consultin~107 203,358,
5762 Balsa Avenue Huntington Beach CA
Park Acres Construction Co Construction 107 653 058,
695 West Everett Salt Lake City
Psomas Ine Surveying 107 142,
2825 E, Cottonwood Parkway Salt Lake City
Quality Electrical Contractors, inc,Contracting 107 920,
O, Box 625 Kaysville
Questar Corporation Administration 401 675 570,30 .
180 East 100 South Salt Lake City
Questar Project Employee Company Temporary Services 401 160 376,24 .180 East 100 South Salt Lake City
FERC FORM NO.2 (ED. 12-87)Page 357a
Name of Respondent Date of Report
(Mo, Da, Yr)
Year of ReportThis Report Is:
(I) (XI An OriginalQUESTAR GAS COMPANY (2) 0 A Resubmission
CHARGES FOR OUTSIDE PROFESSIONAL AND OTHER CONSULTATIVE SERVICES
I, Report the information specified below for all 426.4 Expenditures for Certain Civic, Political and
charges made during the year included in any account Related Activities,
(including plant accounts) for outside consultative and (a) Name and address of person or organizationother professional services, (These services include rendering services.
rate, management, construction, engineering, research, (b) description of services received during year and
financial, valuation, legal, accounting, purchasing, project or case to which services relate
advertising, labor relations, and public relations, ren- (c) basis of charges
dered the respondent under written or oral arrangement (d) total charges for the year, detailing utility
for which aggregate payments were made during the year to department and account charged,
any corporation, partnership, organization of any kind, or 2. For any services which are of a continuing nature
individual (other than for services as an employee or for give the date and term of contract and date of Commis-
payments made for medical and related services J amounting sion authorization, if contract received CommissIOn
to more than $25 000, including payments for legislative approvaL
services except those which should be reported in Account 3. Desil!nate with an asterisk associated companies,NAME & ADDRESS SERVICE ACCOUNT AMOUNTR B M SelVices Inc Maintenance 184 133 843,
1685 West 1400 North Provo Ray Quinney & Nebeker LegalPO Box 45385 Salt Lake City Richter7 Advertising
280 South 400 West Suite 200 Salt Lake City
Rocky Mountain Inspeclion, Inc, Line Inspection200 Hillcrest Lane Rock Springs 10 Rocky Mountain Line Systems Inc ConstructionII PO Box 57 Lander 12 Rocky Mountain SelVice Bureau Inc Collections13 PO Box 459 Rock Springs 14 Salt Lake Cement Cutting Inc Contracting15 2290 South 600 West Salt Lake City 16 SecUlitas Security SelVices USA Inc Security17 File 57220 Los Angeles 18 ShawCor Pipe Protection LLC Line Inspection19 2350 N Sam Houston Pkwy E Suite 500 Houston 20 Southern Cross Corporation Leak SulVey
21 P,O, Box 2168 Norcross 22 SPL Worldgroup !nc Software Consulting23 File # 73730 San Francisco 24 Staker Paving and Construction Construction25 PO Box 27598 Salt Lake City 26 Stoel Rives LLP Lega!27 One Utah Cenler Salt Lake City 28 Structural Integrity Associates Inc, System Integrity29 3315 Almaden Expressway, Suile #24 San Jose 30 TBE Group, Inc, SulVeying31 1939 South 300 West Suile 110 Salt Lake Cily 32 TDW SelVices, Inc, Line Inspection33 PO Box 74101 Tulsa 34 Tempest Enterprises Construction35 4681 South 300 West Murray 36 The Paradigm Alliance Inc Advertising8100West53rdStreetNorth Maize 38 Weatherbank Inc Forecasting39 5 Triad Center Ste 315 Salt Lake City 40 Whitaker Construction Company Inc Construction41 PO Box 430 Brigham City 42 White Glove Building Maintenance Inc Mainlenance43 2567 Kentucky Avenue Salt Lake Cily 44 Willbros Process Engineering Desigin Inc Engineeflng45 PO Box 4346 Dept 107 Houston
Dec, 31 2006
401 956,
401 695 842,
107 255 037,
107 600 055,
401 35,143,
401 302,
401 235,393,
107 395,353,
401 108 184,
107 1,473 503,
401 30,528,
401 393 594,
182 886,
107 35,493,
182 310,905,
107 288,761,
401 133,166,
401 385.23
107 8,462,752,
184 150,217,
107 50,000,
516 057,
FERC FORM NO.2 (ED. 12-87)Page 357b Next Page is 508
Name of Respondent This Report Is:Date of Report Year of Report
OUEST AR GAS COMPANY
(1) - iKf An Original (Mo, Da, Yr)
(2) A Resubmission Dec. 31 2006
GAS ACCOUNT - NATURAL GAS
1. The purpose of this page is to account for the quan-pipeline transported or sold through its local distribution
tity of natural gas received and delivered by the respon-facilities, and which the reporting pipeline received through
dent taking into consideration differences in pressure gathering facilities, distribution facilities or interstate
bases used in measuring Mcf of natural gas received and facil ities, but not through any of the intrastate portion of
delivered,the reporting pipeline and, (3) the gathering line volumes
2, Natural gas means either natural gas unmixed or any which were not transported through any interstate portion of
mixture of natural and manufactured gas,the reporting pipeline,
3, Enter in column (c) the Mcf as reported in the sche-7, Also indicate by footnote (1) the system supply volumes
dules indicated for the items of receipts and deliveries.of gas which are stored by the reporting pipeline during the
4, In a footnote report the volumes of gas from respon-reporting year and also reported as sales, transportation
dent's own production delivered to respondent's trans-and compression volumes by the reporting pipeline during the
mission sys1em and included in natural gas sale,same reporting year, (2) the system supply volumes of gas
5, Ifthe respondent operates two or more systems which which are stored by the reporting pipeline during the report-
are not interconnected, submit separate pages for this ing year and which the reporting pipeline intends to sell or
purpose. Use copies of pages 520 and 521.transport in future reporting year, and (3) contract storage
6, Also indicate by footnote the volumes of gas not volumes,
subject to Commission regulation which did not incur 8, Also indicate the volumes of pipeline production field
FERC regulatory costs by showing (l) the local distribu-sales which are included in both the company s total sales
tion volumes delivered to the local distribution-company figure and the company s total transportation figure (lines
portion of the reporting pipeline by another jurisdic-42 and 46 of page 521),
tional pipeline; (2) the volumes which the reporting
NAME OF SYSTEM
Line Item Ref.Amount ofDth
No,Page No,
(a)(b)(c)
GAS RECEIVED
Gas Purchases (Accounts 800-805)003 039
Gas of Others Received for Gathering (Account 489.303
Gas of Others Received for Transmission (Account 489.2)313 086 085
Gas of Others Received for Distribution (Account 489.3)301
Gas of Others Received for Contract Storage (Account 489.4)307
Exchanged Gas Received from Others (Account 806)328
Gas Received as Imbalances (Account 806)328
Receipts of Respondent's Gas Transported by Others (Account 858)332 129 876 508
Other Gas Withdrawn from Storage (Explain) See Page 512 226 531
Gas Received from Shippers as Compressor Station Fuel
Gas Received from Shippers as Lost and Unaccounted for
Other Receipts (SpecifY) Company Owned Production 569 259
Total Receipts (Total of lines 3 thru 14)291 761 422
GAS DELIVERED
Gas Sales (Accounts 480-484)107 174 030
Deliveries of Gas Gathered for Others (Account 489,303
Deliveries of Transported for Others (Account 489,313 544 794
Deliveries of Gas Distributed for Others (Account 489,301
Deliveries of Contract Storage Gas (Account 489.4)307
Exchanged Gas Delivered to Others (Account 806)328
Gas Delivered as Imbalances (Account 806)328
Deliveries of Gas to Others for Transportation (Account 858)332 128 058 237
Other Gas Delivered to Storage (Explain) See Page 512 354 897
Gas Used for Compressor Station Fuel 509 248
Other Deliveries (SpecifY)
Total Deliveries (Total oflines 17 thru 27)289 154 206
GAS UNACCOUNTED FOR
Production System Losses
Gathering System Losses
TransmIssion System Losses
Distribution System Losses 607 216
Storage System Losses
Other Losses (SpecifY)
Total Unaccounted For (Total of lines 30 thru 35)607 216
Total Deliveries & Unaccounted For (Total oflines 28 thru 36)291 761 422
FERC FORM NO.2 (12-96)Page 520
BLANK PAGE
(Next page is 522)
Name of Respondent
QUESTAR GAS COMPANY
This Report Is:
(1) An Original
(2) D A ResubmisslOn
SYSTEM MAPS
Date of Report
(Mo, Da, Yr)
Year of Report
Dec31 2006
1. Furnish 5 copies of a system map (one with each
filed copy of this report) of the facilities operated by
the respondent for the production, gathering, transpor-
tation, and sale of natural gas, New maps need not
be furnished if no important change has occuITed in the
facilities operated by the respondent since the date of
the maps furnished with a previous year s annual report.
, however, maps are not furnished for this reason
reference should be made in the space below to the year
annual report with which the maps were furnished,
2. Indicate the following infol1llation on the maps:
(a) Transmission lines,
(b) Incremental facilities.
(c) Location of gathering areas.
(d) Location of sones and rate areas.
(e) Location of storage fields.
(f) Location of natural gas fields.
FERC FORM NO.2 (12-96)
(g) Location of compressor stations.
(h) Nol1llal direction of gas flow (indicated by arrows).
(I) Size of pipe,
(j) Location of products extraction plants, stabilization plants
purification plants, recycling areas, etc,
(k) Principal communities receiving service through the
respondent's pipeline.
3. In addition, show on each map: graphic scale of
the map; date of the facts the map purports
to show; a legend giving all symbols and
abbreviations used; designations offacilities leased to or from
another company, giving name of such other company.
4. Maps not larger than 24 inches squ~e are de-
sired. Ifnecessary, however, submit larger maps to
show essential infol1llation, Fold the maps to a size
not larger than this report, Bind the maps to the
report,
stem Ma Next Pa
, Page 522 (Next page is 551)
THE Q
MAP INCLUDED WITH
THIS FILIN G IS NOT
SCANNABLE SEE
ORIGINAL
Name of Respondent This Report Is:Date of Report Year Ending
An Original
(Mo, Oa, Yr)
Dee 31 2006
QUESTAR GAS COt4PAN Y
0 A Resubmlsslon
FOOTNOTE REFERENCE
Page LIne or Item Column Footnote
No.No.No.
(a\It!(d\
PAGE NOT APP~CABU
FERC FORM NO.2 (12-96)Page ' 551
Name of Respondent This Report Is:Date of Report ' Year Ending
An Original--
(Mo, Oa, Yr)
Dee 31 , 2006QUESTAR GAS COMPANY
0 A Res~bmlsslon
FOOTNOTE TEXT
Footnote Fool!1ote TextNo.(b)'(a)
PAGE NOT APPl ICABLE
FERC FORM NO.2 (12-96)Page 552
INDEX
Accrued and prepaid taxes ..............,...."
.....................................,.,..........
262-263Accumulated provision for depreciation of gasutllitypfant,................,
:...,...........,....."'.....,..................
219utility plant (summary) .............,........,...............,....,..,.,...,..,............200-201Advance to associated companies .
........"....,..,..............,......................,............
222Associated companies
advancesfrom "
....................,....
256advancesto.........................................,.."
'.........,..............,
222-223control over respondent......,... ,................. .......
....... ....,.................,.,.. ..
102corporationscontrolledbyrespondent................,......."
....,.....................
103invesbnentin...........,.......,......,...............,...........,....................222-223service contracts charges ............................,........................................357Attestation............................................................
..............................
BalanceSheet,comparative........,......................."
'.......................
110-113'Bonds ......................................................"
........................,
256-257CapitalStock ....................................,.................,..........................250-251dlscount.................................,.................................................254eXPense....................,
...............................................................
254premiums ....................................................,............................252reacquired....................,...................................,........................251subscribed......................................................
...........................
252Cashflowsstatementof ........................................................................120-121Changes-Important during the year ...............................,.........,.......,.................108CompressorStatJons ..........
"..............,.,.....,.........................................
508-509Construction
overheadprocedures.--generaldescriptio.no.f ......................................................218workinprogress-otherutiUtydeparbnents
...................,............................... 200"201Contracts. service charges .,..............................................,..........................357Controlcorporationscontrolledbyrespo.ndent.........................................,..................103over respondent ..........................................................,.................102security holders and voting powers .......................,......................"
..............
107CPA Certification. this reportfonn .......................
;................................................
CuITent and accrued
' ,
, liabilities miscellaneous ......,.......,........,..............................................268Deferred
credlts,other................,.......................,...,...,...............................269debitsmiscellaneous ..................................................
.......................
233incometaxesaccumulated................................................................234-235incometaxesaccumulated-otherproperty ........................................,.........,. 274-275incometaxesaccumulated-other ........,.............
,....................................
276-277regulatory expenses ..........................................................,.,........350-351Definitions,thisreportfonn............................................................,...............
Depletion
amortization and depreciation of gas plant ..........................................,......... 336-338and amortization of producing natural gas land and land rights, . , . . . . . . . . . , . . . . . . . . . . . . . . , . . . . . . . .. 336-338Depreciation
gas plant ................,....,...,.,......,......,...........,.........,.......,......336-338gas plarrt in service .....,...,.,..,....,.............,.....,.............,....................219DiscountonCapitaIStock.........."
.,.,................."'........,..,.,..................
254Dividendappropriations ,....."
.........,......,....,...,..,....,........,......,...".,......
118-119Earningsretained,................"
......,........,...."..........".,...".,......
118-119Exchange and imbalance transactions "
,......".......,.,.".,....."...,...,.....,.....,.........,...
328
FERC FORM NO.2 (12-96)INDEX 1
INDEX (Continued)
Expenses,gasoperatJonandmaintenance ....,.......,.................................,...,....... 320~325Extraordlnarypropertylosses ...,..............,.........,.....,..,...............,...................230
Filing Requirements, this report form
...............................................,...................
I-iiiFootnoteData..,....,.,..............,.....,.............."
.........................,........
551-552Gas account-natural .......,.......
:......................:.................................,.....
520Gas
exchanged, natural ..................,........................,..............................328,received .....................,....,....,...............,............................,.....328 storedunderground ................."
....,..,....,.,.............,.....................,.....
220usedinutilltyoperatlonscredit .."
..........,...,.................,...........,.............
331plant in service .....................,....,.....,........,......,..............,.........204-209Gathelingrevenues.......................................................,.....................302-303Generaldescriptlonofconstructlonoverheadprocedures ....,. "
" '.. "'" "" ... "'" "'" ..
218Generallnfonnation ....................................,...........................................101Income
deductions-details ................................,................................256-259 340statementof,foryear .....................,..............................................114-116Installmentsreceivedoncapitalstock......... "
" ...... ................. .................. "'" ....
252Interest
on debt to associated companies "
..........
340on long-term from Investment, advances, etc. "
'..........................
256-257InstructionsforfifingtheFERCFormNo.2 .............................................................. i-iliInvestment
in associated companies .'......-.........................,.,
............."..............
222-223other .............................,..,................................................222-223subsidiary,companies ....................................................................224-225seculitlesdisposedofduringyear...........................................................222-223temporary cash ...............,......................................
......,............
222-223Law, excerpts applicable to this report form
......................................................"....,..
List of Schedules. this repo.rt form
.........................................:...........................
Legal proceedings during year ...................,....................................................108Long-termdebt.................................................................,..,...........256-257assumedduringyear....................................,....................................255retainedduringyear .........................................................................255Managementandengineeringcontracts...........,................-....................................357Map,system ......................................................................................522Miscelfaneousgeneralexpense .......................................................................335Notes
Payable,advancesfromassociatedcompanies ......., "
'" '" "" "'" "'" '" ...
256-257to balance sheet .............,..........................................,...................122tofinancialstatement ........................................................................122to statement of Income for the year ......................................................,......122Operating
expenses-gas............................................"
.....................,...
317-325revenues-gas ..............
.,.......................................................,.
300-301Other
donationsreceivedfromstockholders....,.....,..,............"
..,....,.....,..........
253gains on resale or cancellation of reacquired capital stock ......................,.,...,.......,.......253mlscellaneouspaid-incapital..
,.................. ";....................,....
253othersuppliesexpense .,.....,',............,.....,...........,
...............................
334paid-in capital .,......,....,.,-....,...........................,..............,.............253reductioninparorstatedvalueofcapitalstock........................,..,......,..................253regulatoryassets.....,............,."
,......,........."',....,......................
232regulatoryliabiliUes ..."
....,."....."..,....................",...,....,,;........,...,....
278
FERC FORM NO.2 (12-96)INDEX 2
INDEX (Continued)
Peak deliveries, transmission system, .,...........
:................................................,...
518Peakingfacilitiesauxiliary ,.........................................,.......,.....,...,.....,........519Plant-gas
construction work in progress ....................................,.............................216held for future use .......,....,.....................,....,....,......,.........,.........,...214
leased from others ...,.,.......,.....,.......,......,.....................,..........,.............212leased to others....,.................,.......,..,....,.. "
".",...
213Plant -Utility accumulatedprovisions(summary).,....................,.....,...,.........................200-201leased to others, income from
.... ........... "" ,. "" "" "" '" "" "'" "'" ..
213Premium on capital stock ......................................................................,.....252Prepaid taxed ..........................,.........,............,...............................262-263Prepayments ........,........................,.....................,..............,..............230Professionalserviceschargesfor .....................................................................357Propertylosses,extraordinary................,................"
..........
230Reacquired
capitalstock ............................................,.............................. 250-251long-terrndebt..........................................................................256-257Receiverscertificate........................................."
;............,.........
256-257Reconciliation of reported net income. with taxable income from Federal income taxes. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . 261Regulatorycommissionexpenses......................,...........................................350-351Regulatoryet;lmmlssionexpenses-deferred............................,..........................,.....232Retained earnings
appropriated
-..........................................................................
statement-of
.........................................................,.................
unappropriated .........,................
~..........................,...................
Revenues
from storing gas of others .................................................................306-307from transportation of gas through gathering facilities... .. .... .. "
'" "" ....,..........
. .... 302-303from transportation of gas through transmission facilities. . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
304-305gas operating .......,......,..................................,............................300Salaries and wages, distribution of .,.....................,................................,........354-355Sales................,...,........................,......,........................."
........
300-301Securities
, disposedofduringyear..................................,"
'........................,.,
222-223holdersandvotingpowers.............................,.......................................107investmentinassociatedcompanles.,.......................................................222-223investmentothers.........................................,..,........................,.222-223issued or assumed during year .................................................................255refundedorretiredduringyear .................................................................255registeredonanationalexchange..................................,................250-251,256-257Stockliabilityforconversion ...........................,......,.........................,......252Storage
of natural gas, underground ......................,...,....,.............,.......,.........512-513revenues ......,.............,....,............................"" 306-~O7
118-119
118-119
118-119
Taxes
accrued and prepaid ...,..,..........,...............,.....,................,............262-263chargedduringtheyear .,......,.....,..............,....,......"
.......................
262-263on income, deferred-accumulated ........,...,......."
....."
...,.......,........ 222-223 234-235reconciliation of net income for .........,......,...,.....,...."
...,.,..........,.",."....,
261
FERC FORM NO.2 (12-96)INDEX 3
INDEX (Continued)
Transmission
and compression of gas by others .........,...............,..............."
...................
332lines..........
.................,................,....."...........,...,..........,.
514revenues ........................,....................,................................304-305systempeakdeliveries .."
........,...............................,..........,......,........
518Unamortized
debt discount and expense ....
.......................,..................,......",.......
258-259loss and gain on reacquired debt ..."
..,.............,..............,..........................
260premiumondebt.....................................,.,.."
............................
258-259Underground
storage of natural gas, expense, operating data, plant ...........................................512-Unrecovered plant and regulatory study costs ............................................................230
FERC FORM NO.2 (12-96)INDEX 4