Pricing Supplement Dated October 2, 1998
No. 003 Rule 424(b)(5)
File No. 333-61621
(To Prospectus dated September 2, 1998)
QUESTAR PIPELINE COMPANY
Medium-Term Notes, Series A, Due From Nine Months
to 30 Years from Date of Issue
Fixed Rates Principal Amounts
5.85% US$ 10,000,000
Trade Date: October 2, 1998 Original Issue Date: October 7, 1998
Interest Rate: 5.85%
Issue Price: 100% of Principal Amount Stated Maturity: October 7, 2008
Regular Record Dates: May 15 and November 15
Selling Agent's Discount Interest Payment Dates:
or Commission: $62,500 June 1 and December 1
Net Proceeds to Company: $9,937,500
Forms: The Notes are registered in Book-Entry form
Optional
Redemption:The Notes will be redeemable as a whole or in part, at the
option of the Company at any time, at a redemption price equal to
the greater of (i) 100% of the principal amount of such Notes and
(ii) the sum of the present values of the remaining scheduled
payments of principal and interest thereon discounted to the
redemption date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus
twenty (20) basis points, plus in
each case accrued interest thereon to the date of redemption.
"Treasury Rate" means, with respect to any redemption date,
the rate per annum equal to the semiannual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for
the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for
such redemption date. "Comparable Treasury Issue" means the
United States Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining
term of the Notes to be redeemed that would be utilized, at the
time of selection and in accordance with
customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity to the remaining term of
such Notes. "Independent Investment Banker" means one of
the Reference Treasury Dealers appointed by the Trustee after
consultation with the Company.
Optional
Redemption
Continued: "Comparable Treasury Price" means, with respect to any redemption
date, the average of the Reference Treasury Dealer Quotations for
such redemption date. "Reference Treasury Dealer Quotations"
means, with respect to each Reference Treasury Dealer and any
redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury
Dealer at 3:30 p.m. New York time on the
third business day preceding such redemption date.
"Reference Treasury Dealer" means each of Merrill Lynch, Pierce,
Fenner & Smith Incorporated and Salomon Smith Barney Inc. and
their respective successors; provided, however, that if any of
the foregoing or their affiliates shall cease to be a primary U.S.
Government securities dealer in The City of New York (a "Primary
Treasury Dealer"), the Company shall substitute therefor another
Primary Treasury Dealer. Notice of any redemption will be mailed
at least 30 days but not more than 60 days before the
redemption date to each holder of Notes to be redeemed.
Unless the Company defaults in payment of the redemption price,
on and after the redemption date interest will cease to accrue on
the Notes or portions thereof called for redemption.
Sinking Fund/Repayment Provision: Not applicable
Redemption Percentage: See above
Annual Redemption Percentage: See above
Redemption Commencement Date: See above
Redemption Date: See above
Redemption Price: See above
Repayments: Other than pursuant to Optional Redemption, the Notes cannot
be repaid prior to Stated Maturity.
Agent: Merrill Lynch & Co.
Other Provisions: Terms are not completed for certain items above either
because such items are not applicable or because the terms are
as specified in the Prospectus.
