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 - June 25, 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.)
[TYPE] EX-1
Item 5. Other Events.
On June 25, 1998, Questar Pipeline Company (Questar Pipeline
or the Company) announced its intention to purchase a 700-mile crude
oil pipeline owned by ARCO Pipe Line Company (ARCO Pipe Line). The
Company intends to convert the line, which runs from the Paradox Basin
in New Mexico to Long Beach, California to transport natural gas.
Questar Pipeline is purchasing the line for $40 million and will spend
approximately $40-50 million to convert the line, which will have a
daily capacity of 120-130 million cubic feet.
The Company and ARCO Pipe Line expect to close the transaction
by September 30, 1998. Questar Pipeline will file an application with
the Federal Energy Regulatory Commission to obtain the necessary
regulatory approval for the conversion.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
Exhibit No. Exhibit
99 Press release dated June 25, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Questar Pipeline Company
(Registrant)
July 1, 1998 By /s/D. N. Rose
(Date) D. N. Rose
President and Chief Executive
Officer
June 25, 1998
QUESTAR PIPELINE TO PURCHASE FOUR CORNERS PIPELINE
SALT LAKE CITY - Questar Pipeline Co., a subsidiary of Questar Corp.,
(NYSE:STR), today announced its intention to purchase ARCO Pipe Line
Company's Line 90 and associated Lines 91 and 92 for $40 million. The
pipeline runs approximately 700 miles between northwestern New
Mexico's Paradox Basin and Long Beach, Calif.
The pipeline was constructed in 1957 to transport crude oil.
Questar will seek all necessary approvals, including the Federal
Energy Regulatory Commission's (FERC), to convert the lines to
transport natural gas. Oil-to-natural gas pipeline conversions have
been successful in other parts of the country, and these lines are
readily convertible.
Reconditioning the pipeline, and adding the necessary additional
compression, are scheduled to begin as soon as possible and will
continue for 18-24 months. Upon completion, the pipeline's capacity
will be 120-130 million cubic feet per day.
"Our long-term strategy is to expand our transmission footprint,"
said Questar Pipeline President and CEO Nick Rose. "This purchase is a
positive step forward in that strategy. The pipeline's location is
strategically significant for several reasons. It complements other
projects already in progress; it provides access to significant
natural gas supplies and markets, and it gives us access to other
major interstate pipelines serving the California market. Access to
those lines allows us the flexibility of developing service in
segments depending on market development," he added.
"We were underutilizing Line 90 and associated Lines 91 and 92,"
said Larry Shakley, ARCO Pipe Line Company president, "and the
agreement with Questar will be beneficial to all concerned - ARCO,
Questar and the California natural gas consumer."
Questar Corp. is a $1.9 billion integrated energy company based
in Salt Lake City. ARCO Pipe Line Co., based in Houston, is a
wholly-owned subsidiary of Atlantic Richfield Co. (NYSE:ARC).
