SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report - August 31, 1998
(Date of earliest event reported)
Questar Pipeline Company
(Exact name of registrant as specified in charter)
STATE OF UTAH 0-14147 87-0307414
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or File No.) Identification No.)
organization)
180 East 100 South Street, P. O. Box 45360, Salt Lake City, Utah 84145-0360
(Address of principal executive offices)
Registrant's telephone number, including area code (801) 324-2400
Not Applicable
(Former name or former address, if changed since last report.)
Item 5. Other Events.
Questar Pipeline Company (Questar Pipeline or the Company) and
some of its affiliates have been named as defendants in a lawsuit
filed by an individual who is engaged in natural gas production. The
lawsuit was filed in the United States District Court for the District
of Colorado under the federal False Claims Act. The case is one of 77
substantially similar cases filed contemporaneously by this producer
against pipelines and their respective affiliates, in which the
producer alleges mismeasurement of the heating content of natural gas
volumes and understatement of the value of gas on which royalty
payments are due the federal government. The complaint also claims
treble damages and seeks imposition of civil penalties. The producer's
complaint does not include a request for any specific monetary damages.
The cases were filed "under seal," and the Company has not yet
been formally served with the complaint. However, in connection with
the Department of Justice's current investigation of whether to
intervene and assume prosecution of the cases, it has just recently
been permitted by the federal courts to provide the named defendants
with copies of the complaints. The Department of Justice, on August
31, 1998, provided Questar Pipeline and its affiliates with a copy of
the complaint filed against them and solicited the Company to provide
written or oral responses to the allegations and claims in the
producer's complaint. The Company is currently evaluating the
allegations set forth in the complaint to provide an appropriate
response to the Department of Justice.
The allegations in the producer's complaint are similar to those
made in a federal False Claims lawsuit filed by the same producer in 1996
against 66 pipeline-company defendants, including Questar Pipeline. As in
that case, which was dismissed by the United States District Court for the
District of Columbia on procedural grounds, the Company will vigorously
defend and contest the allegations and claims, whether they are pursued by
the federal government or by the producer who filed the complaint. Although
Questar Pipeline has only had a limited time to analyze the provisions of
the complaint, it believes that the producer's allegations and claims against
the Company do not have merit.
Questar Pipeline Company
(Registrant)
September 2, 1998 By /s/D. N. Rose
(Date) D. N. Rose
President and Chief Executive
Officer
