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 - December 31, 2000
(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 juris- (Commission (I.R.S. Employer
diction of incorporation File No.) Identification No.)
or organization)
P. O. Box 45601, 180 East 100 South, Salt Lake City, Utah 84145-0601
(Address of principal executive offices)
Registrant's telephone number, including area code (801) 324-5555
Not Applicable
(Former name or former address, if changed since last report.)
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Item 5. Other Events and Regulation FD Disclosure.
On December 31, 2000, Questar TransColorado Inc. ("QTC"), which
is a wholly-owned subsidiary of Questar Pipeline Company ("Questar
Pipeline"), gave notice that it elects to exercise its contractual
right (the "Put") to sell its 50 percent interest in TransColorado
Gas Transmission Company ("TC Partnership") to KN TransColorado,
Inc. ("KNTC"), a wholly-owned subsidiary of Kinder-Morgan, Inc.
("Kinder-Morgan"). As has been disclosed in earlier reports, QTC
and KNTC, their respective parents and certain named affiliates are
involved in a complex lawsuit that is pending in a Colorado state
district court. The lawsuit, in part, involves claims and
counterclaims concerning QTC's contractual right to exercise the
Put.
QTC's notification was given pursuant to a stipulation of the
parties that essentially preserves for QTC all of its claims, rights
and entitlements. The notification does not constitute an election
of remedies by QTC, and QTC expressly reserves all of its claims
against KNTC and its named affiliates.
At year-end 1999, Questar Pipeline wrote down its investment
in the TC Partnership. Pending the outcome of the lawsuit, Questar
Pipeline expects to record operating results sustained by the TC
Partnership beginning April 1, 2001. Questar Pipeline's share of the
TC Partnership's pre-tax monthly losses were $300,000 to $1.2 million
during 2000.
QTC and KNTC have agreed to locate and hire an outside party to
operate the TransColorado pipeline during the litigation. The trial
has been scheduled to begin February 4, 2002.
Questar Pipeline and QTC deny any wrongdoing of any kind,
believe that the claims made by KNTC and Kinder-Morgan are totally
without merit, and intend to vigorously defend against such claims
while pursuing their own causes of action against KNTC, Kinder
Morgan and certain of their affiliates. Questar Pipeline and QTC also
expect to recover any losses recorded in conjunction with the TC
Partnership after March 31, 2001, if they are successful in the litigation.
Questar Pipeline Company
(Registrant)
January 12, 2001 By /s/D. N. Rose
(Date) D. N. Rose
President and Chief
Executive Officer
