GAS GATHERING AGREEMENT Between MOUNTAIN FUEL SUPPLY COMPANY AND QUESTAR PIPELINE COMPANY EFFECTIVE SEPTEMBER 1, 1993 GAS GATHERING AGREEMENT Table of Contents

Contract Categories: Business Operations - Supply Agreements
EX-10.6 7 d526933dex106.htm EX-10.6 EX-10.6

Exhibit 10.6

GAS GATHERING AGREEMENT

Between

MOUNTAIN FUEL SUPPLY COMPANY

AND

QUESTAR PIPELINE COMPANY

EFFECTIVE SEPTEMBER 1, 1993


GAS GATHERING AGREEMENT

Table of Contents

 

Recitals

     1   

Article I – Dedication

     2   

Article II – Gathering Service, Receipts and Deliveries

     2   

Article III – Gathering Charges, Reimbursements and Credits

     3   

(a) Gathering Rates

     3   

(1) Through August 31, 1995

     3   

(2) September 1, 1995—August 31, 1997

     4   

(3) After August 31, 1997

     4   

(b) Independent Facilities

     5   

(c) New Well Connection Reimbursement

     5   

Article IV – Effective Date and Term

     5   

Article V – 1984 Gas Gathering Agreement

     5   

Article VI – Government Authorization

     5   

Article VII – Notices

     6   

General Terms and Conditions

     GTC-1   

1 DEFINITIONS

     GTC-1   

2 SCHEDULING OF GAS RECEIPTS AND DELIVERIES

     GTC-1   

3 WARRANTY

     GTC-2   

4 QUALITY

     GTC-2   

5 MEASUREMENT

     GTC-2   

6 FUEL GAS REIMBURSEMENT

     GTC-3   

7 BILLING AND PAYMENT

     GTC-3   

8 LIABILITY

     GTC-4   

9 FORCE MAJEURE

     GTC-4   

10 ASSIGNMENT

     GTC-5   

11 MISCELLANEOUS

     GTC-5   

Appendix A—Receipt and Delivery Points

     A-1   

Appendix B—Cost of Service and Rate Derivation

     B-1   

Appendix C—New Well Connection Reimbursement Under § III(c)

     C-1   


GAS GATHERING AGREEMENT

This Agreement is entered into on this 11th day of October 1993, between Mountain Fuel, Supply Company (Mountain Fuel), 180 East First South Street, Salt Lake City, Utah 84111, and QUESTAR PIPELINE COMPANY (QUESTAR), 79 South State Street, Salt Lake City, Utah 84111. Mountain Fuel and Questar are collectively referred to as “the Parties.”

The Parties represent that:

1. On October 14, 1982, Mountain Fuel, Wexpro Company, the Utah Division of Public Utilities, the Utah Committee of Consumer Services and the Staff of the Public Service Commission of Wyoming entered into an agreement (the Wexpro Agreement) that provides for the operation and development of certain oil-and-gas properties previously owned by Mountain Fuel and Wexpro Company.

2. Pursuant to the provisions of the Wexpro Agreement, Mountain Fuel owns or has the right to purchase certain supplies of natural gas that are produced by Wexpro Company.

3. Mountain Fuel requires that certain of this Wexpro Agreement production be gathered and transported from points at which it is made available or produced to Mountain Fuel’s retail distribution facilities.

4. Questar currently provides gas-gathering services for Mountain Fuel for certain Wexpro Agreement gas in part pursuant to a Gas Gathering Agreement, dated July 1, 1984.

5. Up through August 31, 1993, Mountain Fuel purchased gas from Questar under Questar’s FERC firm sales Rate Schedule CD-1. This service incorporated, among other things, the field gathering of certain gas supplies by Questar that were necessary to support firm sales service to Mountain Fuel. In partial support of its contractual obligation to provide CD-1 sales service, Questar has built or acquired, and maintains and operates, a gathering system that is contiguous to its interstate transmission system.

6. Pursuant to Questar’s FERC gas tariff, firm sales service was provided to Mountain Fuel under two Rate Schedule CD-1 service agreements executed by Mountain Fuel and Questar on March 1, 1991, and amended as of December 1, 1992, with a primary term that was to expire on June 30, 1999.

7. Pursuant to Federal Energy Regulatory Commission (FERC) Order No 636 and related FERC orders, Questar submitted a comprehensive restructuring of its transportation, storage and gathering operations in FERC Docket No. RS92-9. Under the restructuring, approved by the FERC in Docket No RS92-9, Questar has (a) restructured its various services, and (b) terminated its sales function by assigning to Mountain Fuel all the gas purchase agreements that supported Rate Schedule CD-1 sales service. 64 FERC ¶61,157 (Aug. 2, 1993).

8. As a result of Questar’s restructuring, described above, Mountain Fuel requires gathering services to transport gas purchased by Mountain Fuel from its purchase points to points on Questar’s transmission system.

 

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9. Pursuant to the Docket No. RS92-9 restructuring, Questar transports Mountain Fuel’s gas on its transmission system under its FERC Gas Tariff.

10. Questar and Mountain Fuel wish to enter into a new agreement, under which Questar will gather designated Wexpro Agreement gas and Mountain Fuel-purchased gas, including certain gas that formerly supported the Rate Schedule CD-1 sales service. This Agreement is intended to replace the July 1, 1984, Gas Gathering Agreement and the gathering services formerly provided under Rate Schedule CD-1.

Therefore, the Parties agree as follows:

Article I – Dedication

(a) Except as limited in §§ I(b) and I(d), the following categories of gas are dedicated under this Agreement, up to a combined maximum daily quantity (MDQ) of 322,812 Dth: (1) gas purchased by or produced for Mountain Fuel pursuant to the Wexpro Agreement, and (2) gas purchased by Mountain Fuel at the wellhead or any other point on or near Questar’s gathering system that is upstream from the interstate transmission system into which the gas will be delivered for Mountain Fuel’s account.

(b) The Parties acknowledge that Questar does not provide exclusive service to Mountain Fuel in certain fields. Excluded from dedication under this Agreement, at Mountain Fuel’s discretion, is gas from (i) wells, producing at the initial effective date [defined in § IV(a)] and gathered exclusively through facilities not owned by Questar, or (ii) wells completed in the future that would require reimbursement when evaluated under the criteria described in § III(c) of this Agreement.

(c) Subject to the physical and contractual limitations of Questar’s system, Mountain Fuel may adjust its MDQ to reflect its anticipated 12-month service requirement upon at least 180 days’ advanced written notice to Questar to be effective the next September 1. Any reduction under this provision will be effective no sooner than September 1, 1997.

(d) After August 31, 1997, gas produced for or purchased by Mountain Fuel under the Wexpro Agreement will remain subject to the terms of this Agreement In addition, any gas being purchased by Mountain Fuel from a third party and dedicated to this Agreement under §I(a)(2) on August 31, 1997, may, at Mountain Fuel’s option, continue to be dedicated under this Agreement from year to year (September 1 through August 31) until Mountain Fuel’s underlying gas-purchase agreement expires or until Mountain Fuel, on 180 days’ prior written notice, terminates dedication on the next August 31. The MDQ for use under this Agreement shall be accordingly modified to reflect the demonstrated deliverability of Wexpro Agreement gas and such third-party purchases.

Article II – Gathering Service, Receipts and Deliveries

(a) Questar shall gather up to the MDQ of 322,812 Dth/day of gas dedicated under this Agreement on a firm basis for delivery for Mountain Fuel’s account into Questar’s transmission system or the pipelines of others connected to Questar’s gathering facilities.

 

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(b) The gathering service shall include essential wellhead gas conditioning, collection and measurement through Questar’s gathering laterals, and field compression to enable delivery into connected pipelines.

(c) At the request of Mountain Fuel, Questar shall install all necessary facilities to connect any new well to Questar’s then-existing gathering system. If requested, Questar shall provide an estimate of the costs to connect any new well under this Agreement. Reimbursement of Questar’s costs, if any, shall be determined under § III(c). A “new well” is one that was not identified on Appendix A on the initial effective date. Except when prevented by a force majeure event, Questar shall connect each new well from which gas is to be gathered under this Agreement within 30 days of the later of:

(1) Authorization from Mountain Fuel to connect the well, or

(2) Receipt of all rights of way, permits and necessary authorizations.

(d) Mountain Fuel shall be permitted to change or add new receipt and delivery points, within its MDQ, upon 10 days’ advance written notification to Questar, subject to available capacity at the desired points.

(e) Questar shall receive gas from Mountain Fuel at the receipt points listed on Appendix A.

(f) So long as Mountain Fuel does not exceed the MDQ under § II(a), Mountain Fuel may use any gathering receipt or delivery point on an interruptible basis at any time.

(g) Mountain Fuel shall tender gas at pressures sufficient for delivery into Questar’s facilities against the existing pressures, but not exceeding the maximum allowable operating pressures (MAOPs) of Questar’s facilities.

(h) Questar shall deliver equivalent quantities of gas for Mountain Fuel’s account, less fuel and lost-and-unaccounted-for gas under § 6 of the General Terms and Conditions of this Agreement Delivery for Mountain Fuel’s account by Questar shall take place at the delivery points listed on Appendix A. Questar shall deliver these volumes of gas at the existing pressures, but not exceeding the MAOP in Questar’s facilities at the delivery points.

Article III – Gathering Charges, Reimbursements and Credits

(a) Gathering Rates.

(1) Through August 31, 1995. From the initial effective date of this Agreement until August 31, 1995, rates for gathering services and their derivation are set forth in Appendix B and were calculated on the basis of:

 

  (i) The annual cost of service assigned to Questar’s gathering function for calendar year 1992, as adjusted to establish rates in FERC Docket No. RS92-9, and reduced by $2.5 million, which is representative of the value of gathering service rendered by Questar to third parties.

 

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  (ii) An assignment of 60% of the resultant annual gathering cost of service to reservation charges and 40% to usage charges.

 

  (iii) Billing determinants. Reservation charges: 322,812 Dth/day, Usage charges: 30,336,677 Dth (annual).

(2) September 1, 1995—August 31, 1997. For the period from September 1, 1995, through August 31, 1997, rates will be determined by an application of the methodology shown in Appendix B and will be based on:

 

  (i) The annual cost of service attributable to Questar’s gathering function for calendar year 1994, reduced by the actual revenues received by Questar for providing gathering services to third parties during 1994, and adjusted in accordance with § 1 of Appendix B.

 

  (ii) An assignment of 60% of the resultant annual gathering cost of service to reservation charges and 40% to usage charges.

 

  (iii) Billing determinants. Reservation charge: 322,812 Dth/day, unless adjusted under § 1(c), Usage charge: the actual quantity gathered under this Agreement during calendar 1994.

(3) After August 31, 1997. From September 1, 1997, until the termination of this Agreement, rates will be redetermined each year, to be effective from September 1 through the following August 31, and will be based on:

 

  (i) An allocated portion of the annual cost of service for the prior calendar year that is attributable to Questar’s gathering function through which any gas dedicated under § 1(d) flows during that year, in accordance with the methodology shown in Appendix B. The allocation under this subparagraph shall be the ratio of the annual deliverability of the volumes dedicated and flowing under § I(d) to total deliverability of volumes flowing through the same facilities.

 

  (ii) An assignment of 60% of the resultant annual gathering cost of service to reservation charges and 40% to usage charges.

 

  (iii) Billing determinants. Reservation charge: according to the MDQ established under § 1(d). Usage charge: the actual quantity gathered under this Agreement during the prior calendar year.

 

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(b) Independent Facilities. Questar may construct new gathering facilities that will be operated independently of systems in operation on the initial effective date (i.e., facilities through which gas will flow that do not require the use of any part of Questar’s gathering system as it existed on the initial effective date). To the extent these facilities are not operated to provide service for Mountain Fuel, the costs and revenues associated with or derived from these systems shall be excluded when determining Mountain Fuel’s gathering rates under this Agreement.

(c) New Well Connection Reimbursement. For any new well to be connected to Questar’s gathering system at Mountain Fuel’s request under this Agreement that was not subject to this Agreement on the initial effective date, Mountain Fuel shall reimburse Questar according to the formula set forth in Appendix C of this Agreement.

Article IV – Effective Date and Term

(a) For all purposes in this Agreement, the “initial effective date” is September 1, 1993, the date of implementation of Questar’s restructuring in FERC Docket No. RS92-9.

(b) This Agreement will become effective on the initial effective date and will remain in full force and effect so long as Mountain Fuel is producing or purchasing gas pursuant to the Wexpro Agreement.

(c) Upon termination of this Agreement, deliveries and receipts shall continue for as long as necessary to eliminate any imbalance in quantities of gas owed by either Party to the other.

Article V – 1984 Gas Gathering Agreement

Upon implementation of the terms of this Agreement on the initial effective date, the July 1, 1984, Gas Gathering Agreement shall be terminated and superseded by this Agreement

Article VI – Government Authorization

(a) The Parties shall cooperate to obtain any necessary governmental authorization to implement this Agreement. To the extent that a governmental agency with jurisdiction over the rates, facilities or services addressed by this Agreement imposes terms or conditions on this Agreement that materially alter the rights or obligations of either party, this Agreement may be terminated or rescinded, as appropriate, by either party upon 15 days’ written notice to the other party.

(b) The Parties have entered into this Agreement with the expectation that the facilities, services and rates that are the subject of this Agreement do not come within the jurisdiction of the FERC. The Parties may, however, seek FERC approval of all or part of the Agreement to expedite its implementation. Any such action by the Parties will not be construed as a concession, acquiescence or waiver by either party of any legal position concerning the regulation of gathering facilities, service or rates.

(c) If the rates for Questar’s gathering services are deemed to be subject to regulation by an administrative agency that prescribes rates other than those specified in this Agreement for any period governed by this Agreement, the rates so specified shall be substituted for the rates

 

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provided for in Article III, Any substitution under this provision will apply only to the extent that, and for the period during which, the administrative agency lawfully exercises rate regulation over the services. Nothing in this provision will preclude either party from exercising its termination rights under § VI(a).

Article VII – Notices

All notices required in this agreement shall be in writing and shall be considered as having been given if delivered personally, by mail or facsimile transmission to either Questar or Mountain Fuel at the designated address. Normal operating instructions can be delivered by telephone or any electronic means. Notice of events of force majeure may be made by any electronic means and confirmed in writing. Monthly statements, payments, and any communications will be considered as delivered when mailed to the addresses listed below or to such other address as either Party designates in writing:

 

QUESTAR:

CONTACT ADMINISTRATOR

Gathering Division

Questar Pipeline Company

79 South State Street

Salt Lake City, Utah 84111

  

MOUNTAIN FUEL:

Vice President, Gas Supply

Mountain Fuel Supply Company

141 East First South Street

Salt Lake City, Utah 84111

THIS AGREMENT is entered into by the authorized representatives of the Parties, whose signatures appear below.

 

QUESTAR PIPELINE COMPANY:

 

/s/ J. B. Carricaburu

J. B. Carricaburu

Vice President, Gas Supply & Marketing

Signature date: October 12, 1993

  

MOUNTAIN FUEL SUPPLY COMPANY:

 

/s/ M. E. Benefield

M. E. Benefield

Vice President, Gas Supply

Signature date: October 12, 1993

 

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GENERAL TERMS AND CONDITIONS

OF

GAS GATHERING AGREEMENT

 

1 DEFINITIONS

1.1 “Firm,” as applied to service under this Agreement, refers to Questar’s contractual obligation to render the specified service unless the obligation is otherwise waived, reduced, modified or terminated by force-majeure events.

1.2 “Interruptible” means subject to reduction, suspension or termination of the receipt or delivery of gas.

1.3 “Questar’s gathering system” refers to all facilities owned or operated by Questar for the purposes of conveying natural gas on all or a portion of its movement from the production of the gas at the wellhead to the delivery of the gas into a pipeline that provides transportation of the gas in interstate commerce, as defined under § 1 of the Natural Gas Act.

1.4 Questar’s FERC Gas Tariff Vol. No.1. as amended and revised from time to time, will be used to define terms that are otherwise not defined in this Agreement.

2 SCHEDULING OF GAS RECEIPTS AND DELIVERIES

2.1 Scheduling. (All times are Mountain Standard or Daylight Time, as applicable.) If Mountain Fuel desires to have gas gathered on gas day one of each month, Mountain Fuel must notify Questar’s nomination department no later than 10:00 a.m. three working days prior to the commencement of service. For all succeeding days of the month, Mountain Fuel shall notify Questar’s nomination department no later than 10:00 a.m. each day of the quantity of natural gas it desires to have gathered from specific sources and receipt points commencing at 12:00 noon on the succeeding calendar day.

By electronic means or in writing by 12:00 noon of the nomination day, Questar shall then notify Mountain Fuel of the quantity that it can receive and deliver. Starting no later than 12:00 noon on the day following the calendar day of receipt of Mountain Fuel’s nomination, Questar shall commence to deliver an equivalent volume of natural gas. All scheduling of deliveries of gas between Mountain Fuel and Questar shall take this scheduled timing difference into account. Upon written agreement or telephone agreement (to be confirmed in writing) between Questar and Mountain Fuel, receipts and deliveries may commence earlier than provided by this schedule.

2.2 In connection with service provided to Mountain Fuel under Questar’s FERC Rate Schedule NNT (no-notice service), Mountain Fuel may modify its nominations under this § 2 at any time.

2.3 Operating Information and Estimates. Upon request of Questar, Mountain Fuel shall from time to time submit its best estimates of the daily, monthly and annual quantities of gas it expects to be gathered, together with such other operating data as Questar may require in order to schedule its operations.

2.4 Operating Requirements.

2.4.1 Mountain Fuel shall use reasonable efforts to deliver and receive gas at uniform hourly and daily rates of flow.

2.4.2 Mountain Fuel shall deliver gas to Questar at the receipt points at a pressure sufficient to allow the gas to enter Questar’s gathering system. Questar shall not be required to compress natural gas into its system. If requested by Questar, Mountain Fuel shall provide equipment acceptable to Questar at each receipt point to prevent overpressuring Questar’s system.

 

 

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2.4.3 Questar shall deliver gas at each transfer point to the receiving party at the pressure in Questar’s system after required measurement, flow control or regulation.

2.5 Limitations On Questar’s Gathering Obligations.

2.5.1 On any day, Questar shall not be obligated to deliver to Mountain Fuel a quantity of gas different from the equivalent volume received from Mountain Fuel during the same day, as adjusted under § 6 below.

2.5.2 For gathering service provided under this Agreement, Questar shall not be obligated to receive from or deliver to Mountain Fuel a quantity of gas in excess of the MDQ, unless Mountain Fuel has requested and Questar has agreed to provide overrun service.

3 WARRANTY

Mountain Fuel warranties title to and the right to deliver and use the gas shipped or committed to use under this Agreement and further warrants that the gas is free from all liens and adverse claims, including tax liens. Mountain Fuel will have the obligation to make settlements for all royalties due and payments owed to Mountain Fuel’s mineral and royalty owners. Mountain Fuel agrees to indemnify Questar and save it harmless from all suits, actions, claims, debts, accounts, damages, costs, losses, liens, license fees, and expenses which arise from Mountain Fuel’s ownership or control of the gas.

4 QUALITY

4.1 Questar may refuse to receive gas from Mountain Fuel if the gas does not meet the quality specifications of the party to whom the gas is to be delivered (including the interstate transmission facilities of Questar) for the following: hydrogen sulfide and other forms of sulfur; inert substances; liquids; dust, gums, gum-forming constituents, dirt, impurities or other solid or liquid matter that might interfere with the merchantability of the gas; oxygen; or water vapor.

4.2 The gas tendered to Questar at each receipt point shall contain a gross heating value of at least 950 Btu per cubic foot.

4.3 The gas tendered to Questar at each receipt point shall be at a temperature between 35°F. and 120°F.

4.4 If the gas tendered to Questar under this Agreement fails to meet the specifications, as described in ¶¶ 4.1, 4.2 and 4.3, Questar shall notify Mountain Fuel and may, at its option, refuse to accept further receipt of gas pending correction.

4.5 Mountain Fuel shall indemnify Questar and hold it harmless from all suits, actions, regulatory proceedings, damages, costs, losses and expenses (including reasonable attorney fees) arising out of the failure of the gas tendered by Mountain Fuel to conform to the quality specifications, including any injury or damage done to Questar’s facilities.

4.6 Acceptance of gas that does not meet quality specifications is at Questar’s option. Acceptance of the gas does not constitute any waiver of Questar’s right to refuse to accept similarly nonconforming gas.

5. MEASUREMENT

5.1 The volumes of gas delivered to Questar by Mountain Fuel shall be measured by Questar according to its current FERC tariff. The meters shall be installed and tested and any discrepancies in the volumes measured shall be resolved according to Questar’s current FERC tariff.

5.2 All claims of any party as to the quantity of gas tendered and delivered must be submitted in writing by the party within 180 days from the date of commencement of the claimed discrepancy.

5.3 Either party may, at its option and expense, install and operate check measuring equipment, provided that the equipment is installed in a way that does not interfere with the operations of the other party. However,

 

 

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measurement of gas for the purpose of this Agreement shall be measured under ¶ 15.1. Either party’s check meters will be subject at all reasonable times to inspection and examination by a representative of the other party, but the reading, calibration, adjustment, and changing of charts will be done only by the party installing the check meters.

5.4 Each party shall, upon request, furnish to the other party at the earliest possible time all charts upon which it has based any statement. Each party shall return to the other party all charts after a 30-day period. Each party shall have access to the other party’s records and books at all reasonable business hours so far as they affect measurement and settlement for the gas received or delivered.

5.5 Questar shall integrate the charts and data obtained by the metering and measurement of the gas gathered under this Agreement. Upon written request, Questar shall furnish Mountain Fuel copies of measurement charts used in compiling any monthly statements. Mountain Fuel may compute the volume of gas from Questar’s charts and data. If Mountain Fuel’s computation of the volume of gas varies from Questar’s computation by less than the greater of 2% or 50 Dth, Questar’s computation will be deemed correct. If Mountain Fuel’s computation differs from Questar’s by more than the greater of 2% or 50 Dth, then Questar shall reintegrate and redetermine the volume of gas purchased. If Questar’s second computation varies from Mountain Fuel’s computation by less than the greater of 2% or 50 Dth, Mountain Fuel’s computation will be deemed correct. However, if Questar’s second computation still varies from Mountain Fuel’s computation by more than the greater of 2% or 50 Dth, then Questar’s initial computation will be deemed correct.

6 FUEL GAS REIMBURSEMENT

6.1 Fuel Reimbursement. For all gas tendered by Mountain Fuel under this Agreement, Mountain Fuel shall reimburse Questar with gas provided in-kind for:

6.1.1 The actual fuel used to treat or condition the gas to permit compliance with any quality requirements under § 4 and compressor fuel required to effect receipt or delivery of the gas, and

6.1.2 Mountain Fuel’s proportionate share of lost-and-unaccounted-for gas on Questar’s gathering system.

6.2 Nomination Adjustment. Mountain Fuel’s total nominations into Questar’s gathering system must include the amount of gas required to reimburse Questar for fuel use and lost-and-unaccounted-for gas.

7 BILLING AND PAYMENT

7.1 Monthly Bill.

7.1.1 On the 20th day of each month, Questar shall bill Mountain Fuel any applicable reservation charges for the current month.

7.1.2 By the 25th day of each month, Questar shall bill Mountain Fuel usage charges for all volumes of gas gathered for delivery during the immediately previous month as well as any other applicable charges. If actual quantities are not reasonably available, Questar may use estimates of the quantity of gas gathered for Mountain Fuel in computing the amounts due. Any necessary adjustment shall be made in later billings for differences between the estimated and actual qualities

7.2 Access to Billing Data. Both Parties will have the right to examine at reasonable times books, records and charts of the other to the extent necessary to verify the accuracy of any statement, charge or computation made under or pursuant to any of the provisions of such statement.

7.3 Payment. Mountain Fuel shall pay Questar on or before the last day of each month or within 10 days of the date the bill is received by Mountain Fuel under this section, whichever is later.

 

 

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7.4 Late Payments.

7.4.1 Should Mountain Fuel fail to make timely payment of any part of the amount of any bill, the unpaid amount will be deemed late, and Questar shall charge interest from the date payment is due until the actual date of receipt of payment. The interest will be compounded quarterly until paid.

7.4.2 Interest will be calculated at the rate prescribed for the applicable period by 18 C.F.R. § 154.67(c).

7.4.3 Questar shall bill Mountain Fuel for any interest due in its next billing to Mountain Fuel, and Mountain Fuel shall pay the amount due according to this section. Questar may waive the interest on late payment made within Eve days of the due date. If an uncontested bill remains unpaid for 30 days or more after payment is due, Questar, in addition to any other remedy it may have, may, after giving Mountain Fuel 15 days’ written notice, suspend further receipt and delivery of gas for Mountain Fuel until full payment for all service rendered to date is made.

7.5 Contested Bills. Any billing or statement may be contested within 180 days from its receipt by Mountain Fuel. If Mountain Fuel (i) contests all or any part of a bill in good faith, (ii) pays to Questar the amounts it concedes to be correct, and (iii) within 30 days of a demand made by Questar furnishes a surety bond guaranteeing payment in the amount of the disputed portion of the bill, then Questar may not suspend further delivery of gas unless default has occurred under the conditions of the bond. No payment by Mountain Fuel of the amount of a disputed bill will prejudice its right to claim an adjustment of the disputed bill. Mountain Fuel shall pay interest of disputed portions of a bill for which it has withheld payment, and which ultimately are found due.

7.6 Billing Errors. If an error is discovered in the amount of any bill, the error shall be adjusted within 30 days of the determination that an adjustment is required, provided that the

claim for adjustment will have been made within 180 days from the date of the bill. If it is determined that Mountain Fuel has been overcharged and has paid the statement containing the overcharge, then, within 30 days after the final determination, Questar shall refund the amount overcharged with interest. If it is determined that Mountain Fuel has been undercharged, Mountain Fuel shall pay the amount undercharged with interest. The rate of any interest to be paid by either party under this provision will be governed by 18 C.F.R. § 154.67(c). In the event that any portion of a statement is in dispute, payment of the disputed portion will not be deemed a waiver of the right to contest such disputed portion in any forum having jurisdiction.

8 LIABILITY

Each party assumes full responsibility and liability arising from the operation of the facilities it owns and agrees to hold the other party harmless from any liability whatever arising from the owning party’s installation, ownership or operation of its facilities.

9 FORCE MAJEURE

9.1 Definition. The term “force majeure” as employed in this agreement will mean acts of God, strikes, lockouts or other labor or industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, tornadoes, severe weather, storms floods, washouts, arrest and restraint from rulers of people, necessity for compliance with any court order, law ordinance or regulations promulgated by a governmental authority having jurisdiction, civil disturbances, explosions, breakage or accident to machinery, instrumentation, or lines of pipe, sudden partial or sudden entire failing of wells, freezing of wells or pipelines, inability to secure right-of-way, materials, supplies or labor, including inability or failure to obtain materials and

 

 

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supplies due to governmental regulations, and causes of like or different kind, whether enumerated in this agreement or not, and not within the control of the parry claiming force majeure, and which by the exercise of due diligence such party is unable to overcome.

9.2 Notice. If either party is rendered wholly or partially unable to carry out its obligations under this Agreement due to force majeure, the party shall give written notice describing the event of force majeure as soon as is reasonably possible after the occurrence. The obligations of the Parties, other than to make payments of amounts due so far as they are affected by such force majeure, will be suspended during the continuance of the event of force majeure, but for no longer period. The affected party shall remedy the event of force majeure in a commercially reasonable manner. Nothing in this Agreement shall be construed to require either party to settle a strike or labor dispute against its better judgment.

10 ASSIGNMENT

All rights and duties under this Agreement shall inure to and be binding upon the successors and assignees of the Parties. No

conveyance or transfer of any interest of either party, except a transfer to an affiliate, will be binding upon the other party until the other party has been furnished with notice and a true copy of the conveyance or transfer. The successor or assignee agrees in writing to be bound by all the terms and conditions of the agreement and that the successor or assignee assumes all the obligations under this Agreement.

11 MISCELLANEOUS

11.1 A waiver by either party of any one or more defaults by the other party shall not operate as a waiver of any future default.

11.2 This Agreement, including any appendices and these General Terms and Conditions, contains the entire understanding of the Parties and may only be amended by an instrument in writing signed by the Parties.

11.3 In interpreting this Agreement, the recitals will be considered as part of this Agreement and not as surplusage.

11.4 This Agreement shall be construed under the laws of Utah.

 

 

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APPENDIX A

TO THE

GAS GATHERING AGREEMENT

DATED: OCTOBER 11, 1993

BETWEEN

MOUNTAIN FUEL SUPPLY COMPANY

AND

QUESTAR PIPELINE COMPANY

RECEIPT POINTS

The interconnection of Questar’s gathering facilities and the production facilities associated with the following wells:

Receipt points associated with Wexpro Agreement.

 

Well
Num
   Form
Code
   Well Name
02259    2896    N BAX UP 11-19-104 1
00734    2168    ES LAUZER A 1
00735    2896    ES LAUZER B 2
00738    3128    C R HETZLER 2
01029    2168    WE MULLEN A 2
00999    2896    SO BAXTER UNIT 15
01014    2168    SO BAXTER UNIT 2
01016    2168    SO BAXTER UNIT 6
01019    2168    WT NIGHTINGALE A 1
01018    2168    A COOPER 1
00686    1600    JACKKNIFE SPRINGS 2
00685    1600    JACKKNIFE SPRINGS 1
01837    2168    SO BAXTER UNIT 17
01036    2896    SO BAXTER UNIT 12
01033    2168    SO BAXTER UNIT 8
01026    2168    MF WHELAN 1
01025    2168    UP 21-16-104 2
01022    2168    U P 11-16-104-1
02124    2168    CLAY BASIN UNIT 62
00402    2168    CLAY BASIN UNIT 23
00401    2168    CLAY BASIN UNIT 22
00400    2168    CLAY BASIN UNIT 20
00399    2168    CLAY BASIN UNIT 19
00398    2168    CLAY BASIN UNIT 18
00397    2168    CLAY BASIN UNIT 17
00396    2168    CLAY BASIN UNIT 16
00504    0912    F WILSON B UNIT 2

 

A-1


Well
Num
   Form
Code
   Well Name
00504    0784    F WILSON B UNIT 2
00504    0784    F WILSON B UNIT 2
00500    0784    F WILSON A 18
00499    0784    E HIA F WILSON A17
00494    0912    F WILSON B 12
00494    0912    F WILSON B 12
00491    0784    F WILSON A 9
00536    0784    W W WILSON A 2
00535    0784    W W WILSON A 1
00534    0912    W W WILSON A UNIT 6
00533    0912    NEWBERGER B UNIT 5
00532    0912    W W WILSON A UNIT 4
00531    0784    W W WILSON A UNIT 3
00531    0784    W W WILSON A UNIT 3
00522    0912    F WILSON B 25
02131    0912    E HIA MW NEWBERGER 7
02059    0912    E. HIA F. WILSON 26
01404    3944    HIAWATHA DEEP 2
01403    3944    HIAWATHA DEEP 3
00549    3944    HIAWATHA DEEP 1
00547    0912    AMELIA HORROCKS 2
00544    0912    MW NEWBERGER A 6
00543    0784    MW NEWBERGER C 5
01241    0912    WM WHEELER A 3
01240    0912    WM WHEELER A 2
01240    0912    WM WHEELER A 2
01240    0784    WM WHEELER A 2
01240    0784    WM WHEELER A 2
01238    0912    W B LASHAR A 4
01238    0912    W B LASHAR A 4
01236    0784    W B LASHAR A 2
01113    1600    TRAIL UNIT 6
01111    1600    TRAIL UNIT 4
01110    1600    TRAIL UNIT 3
01109    1600    TRAIL UNIT 2
00854    1600    PIONEER UNIT 8
00854    1600    PIONEER UNIT 8
00674    2896    KINNEY UNIT 6
00669    2896    KINNEY UNIT 5
00927    0912    J C DONNELL B 12
00926    0912    J C DONNELL A 11
00925    0912    POWDER WASH GOVT 2
00924    0912    POWDER WASH GOVT 1
00923    0912    B W MUSSER B 20

 

A-2


Well
Num
   Form
Code
   Well Name
00922    0912    B W MUSSER B 19
00921    0912    B W MUSSER B 18
00920    0912    B W MUSSER B 17
00919    0912    B W MUSSER A 16
00918    0912    B W MUSSER B 15
00917    0912    B W MUSSER A 14
00916    0912    B W MUSSER B 13
00912    0912    HAL STEWART A 1
00911    0912    J C DONNELL B 10
00910    0912    J C DONNELL B 9
00910    0912    J C DONNELL B 9
00908    0784    J C DONNELL B 7
00906    0912    JC DONNELL B 5
00906    0912    JC DONNELL B 5
00904    0784J    J C DONNELL B 3
00903    0912    B W MUSSER B 11
00902    0912    B W MUSSER B 10
00901    0784    B W MUSSER A 9
00899    0784    B W MUSSER B 7
00898    0784    B W MUSSER B 6
00897    0784    B W MUSSER B 5
00896    0784    B W MUSSER A 4
00895    0912    B W MUSSER B 21
00894    0784    B W MUSSER A 2
00893    0784    B W MUSSER A 1
00892    0912    CARL ALLEN A 20
00891    0912    CARL ALLEN A 19
00889    0784    CARL ALLEN 17
00887    0784    CARL ALLEN B 15
00886    0784    CARL ALLEN A 14
00884    0784    CARL ALLEN B 12
00883    0912    CARL AI-LEN A 11
00882    0784    CARL ALLEN B 10
00879    0912    CARL ALLEN B 7
00878    0912    CARL ALLEN B 6
00876    0784    CARL ALLEN B 4
00876    0784    CARL ALLEN B 4
00875    0784    CARL ALLEN B 3
00662    0912    JACKS DRAW UNIT 8
00661    0912    JACKS DRAW UNIT 5
00659    0784    JACKS DRAW UNIT 4
00658    0912    JACKS DRAW UNIT 15
00657    0912    JACKS DRAW UNIT 13
00656    0912    JACKS DRAW UNIT 9

 

A-3


Well
Num
   Form
Code
   Well Name
00655    0912    JACKS DRAW UNIT 3
00654    0912    JACKS DRAW UNIT 2
00006    0912    ACE UNIT WELL 7
00003    0912    ACE UNIT WELL 3
00002    0912    ACE UNIT WELL 2
00001    0912    ACE UNIT WELL 1
01096    0912    NIGHTINGALE B-1
01085    1600    STATELAND 3-11-101 2
01081    1600    DONNELL GOV’T 15
01080    1600    NIGHTINGALE GOV’T 14
01079    1600    NIGHTINGALE GOV’T 12
01078    1600    DONNELL GOV’T 10
01077    0912    HETZLER GOV’T 9
01076    1600    ROBERTS GOV’T 8
01075    1600    NIGHTINGALE GOV’T 6
03360    8500    MOSU SALES GAS MM
03975    2168    LAWLER FED 2-30
04001    2168    LANSDALE FED 28-3
03829    2168    LANSDALE FED 28-2
03959    2168    LANSDALE FED 10-3
03830    2168    LANSDALE FED 4-2
01031    2168    SL 36-18-104 2
04013    2168    BRUFF UNIT 28
00954    2416    M F FEDERAL 8-1
00700    2416    LOWER HORSE DR 12-1
00699    2416    LOWER HORSE DR 11-4
00698    2416    LOWER HORSE DR 10-2
00697    2416    LOWER HORSE DR 10-1
00695    2416    LOWER HORSE DR 12-2
00694    2416    LOWER HORSE DR 11-1
02109    8500    HORSESHOE BND MS 205
02291    0784    ISLAND UNIT 30
02290    0784    ISLAND UNIT 29
02289    0784    ISLAND UNIT 32
02245    0784    ISLAND UNIT 27
02244    0784    ISLAND UNIT 26
02243    0784    ISLAND UNIT 25
02130    0784    ISLAND UNIT 24
02129    0784    ISLAND UNIT 23
02128    0784    ISLAND UNIT 22
02127    0784    ISLAND UNIT 20
02126    0784    ISLAND UNIT 19
02113    0784    ISLAND UNIT 21
02092    0784    ISLAND UNIT 17

 

A-4


Well
Num
   Form
Code
   Well Name
02091    0784    ISLAND UNIT 18
01418    0784    ISLAND UNIT 12
01417    0784    ISLAND UNIT 13
01416    0784    ISLAND UNIT 11
01415    0784    ISLAND UNIT 15
01414    0784    ISLAND UNIT 14
00681    0784    ISLAND UNIT 10
00680    0784    ISLAND UNIT 9
00677    0784    ISLAND UNIT 3
02300    5632    BUG 15 LP
02299    5632    BUG 13 LP
02149    5680    PATTERSON CNYN 3 LP
02143    5632    BUG 9 LP
02140    5680    BUG 16 LP
02140    5680    BUG 16 LP
02139    5632    BUG 14 LP
01838    5680    PATTERSON UNIT 5 WD
01687    5680    PATTERSON UNIT 3 LP
01683    5632    BUG 17 LP
01682    5632    BUG 10 LP
01681    5632    BUG 14 HP
01680    5632    BUG 4 LP
00851    5680    PATTERSON CNYN 3 HP
00842    5680    PATTERSON UNIT 1 LP
00431    5680    PATTERSON CANYON 1
03328    2416    MOUNTAIN FUEL 3-1
03327    2416    MOUNTAIN FUEL 26-2
03326    2416    MOUNTAIN FUEL 23-2
02082    2416    MIKULICH MFS 28-1
00150    2416    BIG HORSE DRAW 35-1
00120    2416    BIG HORSE DRAW 2-1
02147    2168    FOX FED 1-8 LP
02146    2168    FOX FED 1-5 LP
01069    2168    SPRHD RANCH 18 HP
01057    2168    SPRHD RANCH 6 HP
01055    2168    SPRHD RANCH lA LP
00592    2168    JUDSON FED 1-11 HP
00578    2896    SPRHD RANCH 3
00578    2896    SPRHD RANCH 3
00430    8520    CRESTON FED 22-1
00430    8520    CRESTON FED 22-1
03571    0784    CARL ALLEN 2
03048    0784    J C DONNELL B 4
02566    0784    JC DONNELL B 8

 

A-5


Well
Num
   Form
Code
   Well Name
02383    0784    ACE UNIT 5
02308    0784    P W H. STEWART 4
02308    0784    P W H. STEWART 4
02302    0784    POWDER WSH STEWART 2
02293    0784    PW CARL ALLEN 16 GVT
00939    0912    POWDER WASH 20-1
00929    0912    J C DONNELL A 1
00928    0912    J A LEE 1
01074    1600    DONNELL GOV’T 4
01073    1600    DONNELL GOV’T 3
01072    1600    DONNELL GOV’T 2
01071    1600    DONNELL GOV’T 1
02118    1600    TRAIL UNIT 12
01721    8520    KINNEY UNIT WELL 3
01479    1600    TRAIL UNIT 13
01114    1600    TRAIL UNIT 8
00668    2896    KINNEY UNIT 4
00667    2896    KINNEY UNIT 2
00665    1600    PIONEER UNIT 4
00664    1600    PIONEER UNIT 3
00663    3944    KINNEY UNIT 1
00663    3944    KINNEY UNIT 1
01259    0912    W B LASHAR A 5
01259    0912    W B LASHAR A 5
03402    0912    F WILSON 20
03402    0912    F WILSON 20
03349    0912    G KUYKENDALL #9
03348    0912    F WILSON 28 ES
02310    0912    STATE LAND 6
02309    0912    KUYKENDALL 10
02309    0912    KUYKENDALL 10
02132    0912    E HIA MW NEWBERGER 8
00543    0784    MW NEWBERGER C 5
00542    0784    MW NEWBERGER B 4
00541    0784    MW NEWBERGER A 3
00540    0912    MW NEWBERGER D 2
00540    0912    MW NEWBERGER D 2
00539    0784    MW NEWBERGER A 1
00538    0912    W W WILSON B 4
00537    0912    W W WILSON C 3
00520    0912    F WILSON B 24
00517    0784    K S WHITFORD 1
00516    0912    G KUYKENDALL A 8
00511    0912    ST LAND 37-12-100 5

 

A-6


Well
Num
   Form
Code
   Well Name
00510    0784    ST LAND 37-12-100 4
00508    0784    ST LAND 37-12-100 2
00505    0912    F WILSON A 22
00504    0912    F WILSON B UNIT 2
00488    0784    F WILSON B 6
00488    0784    F WILSON B 6
00485    0784    F WILSON B 3
00484    0784    F WILSON A 2
00483    0912    F WILSON A 1
00483    0912    F WILSON A 1
00483    0912    F WILSON A 1
02133    2168    CLAY BASIN UNIT 61
00395    2168    CLAY BASIN UNIT 15
00394    2168    CLAY BASIN UNIT 14
00393    2168    CLAY BASIN UNIT 13
00392    2168    CLAY BASIN UNIT 12
00391    2168    CLAY BASIN UNIT 9
00390    2168    CLAY BASIN UNIT 8
00389    2168    CLAY BASIN UNIT 1
00386    2168    CLAY BASIN UNIT 7
01021    2168    AJ POSTON A 3
01015    2168    SO BAXTER UNIT 3
01000    2896    SO BAXTER UNIT SR 1
01030    2168    SL 10-17-104 1
00738    3128    C R HETZLER 2
00735    2896    ES LAUZER B 2
00185    2896    BUTCHERKNIFE SPR 6
00231    2896    BUTCHERKNIFE SPR 5
00619    2896    HENRY FORK UNIT 1
00231    2896    BUTCHERKNIFE SPR 5
01410    2896    HENRY FORK UNIT 10
01871    2896    HENRY FORK UNIT 14
02121    2896    HENRY FORK UNIT 9A
00197    2168    CHAMPLIN 149 B-1
00206    2168    BRUFF UNIT 8
00205    2896    LANSDALE FED 4-1
00217    2168    BRUFF UNIT 4
00216    2168    BRUFF UNIT 6
00215    2896    LANSDALE FED 10-1
00213    2168    BRUFF UNIT 9
00212    2168    BRUFF UNIT 5
00211    2168    BRUFF UNIT A-1
00209    2168    BRUFF UNIT 3
00208    2168    BRUFF UNIT 2

 

A-7


Well
Num
   Form
Code
   Well Name
01474    2168    SHUTE CREEK 9
01287    2168    WHISKEY BUTTES 3
00752    2168    CLIFTON FEDERAL 28-1
00553    2168    HARRINGTON FED 1
00447    2168    HALEY FEDERAL 4-1
00439    2168    BRUFF FEDERAL 2-26
00429    2168    CLIFTON FEDERAL 34-1
00409    2896    PANDO FEDERAL 32-1
00408    2896    W G MCNAMARA (NCT) 1
00408    2896    W G MCNAMARA (NCT) 1
00408    2168    W G MCNAMARA (NCT) 1
00408    2168    W G MCNAMARA (NCT) 1
00373    2896    WYO ‘U’ (NCT 2) 1
00261    2168    DONLEY (NCT #1) 1
00229    2896    DONLEY (NCT #2) 1
00229    2896    DONLEY (NCT #2) 1
00453    2168    DRY PINEY UNIT 1
03991    2896    MFS FEE 10-3
03991    2896    MFS FEE 10-3
03960    2168    LANSDALE FED 10-4
03957    2168    CLIFTON FEDERAL 34-4
03941    2168    BRUFF FEDERAL 4-26
03940    2896    BRUFF FEDERAL 3-26
03940    2896    BRUFF FEDERAL 3-26
00473    2168    DRY PINEY UNIT 23
00473    2168    DRY PINEY UNIT 23
00465    2168    DRY PINEY UNIT 14
00464    2168    DRY PINEY UNIT 11
00463    2168    DRY PINEY UNIT 9
00462    2168    DRY PINEY UNIT 8
00461    2168    DRY PINEY UNIT 6
00460    2168    DRY PINEY UNIT 5
00813    3640    U P 11-19-104 3
00812    2896    U P 11-19-104 2
00810    3640    MFS CHAMPLIN 11-8
00809    3640    NORTH BAXTER 14-1
00808    2896    G W CAPPERS B 3
00807    2896    G W CAPPERS A 2
00724    2896    LEUCITE HILLS 2
00723    2896    LEUCITE HILLS 1
00817    2896    TERESA LAURUNEN 1
00817    2896    TERESA LAURUNEN 1
00817    2168    TERESA LAURUNEN 1
00817    2168    TERESA LAURUNEN 1

 

A-8


Well
Num
   Form
Code
   Well Name
00816    2896    O F FEATHERSTONE 1
00815    2896    U P 35-20-104 1
00814    2896    U P 23-20-104 1
00723    2896    LEUCITE HILLS 1
00723    2168    LEUCITE HILLS 1
00723    2168    LEUCITE HILLS 1
01466    0912    MESA UNIT 2
01465    0912    MESA UNIT 1
00474    2760    DRY PINEY UNIT 26
00473    2760    DRY PINEY UNIT 23
00473    2760    DRY PINEY UNIT 23
00459    2168    DRY PINEY UNIT 3
00458    2168    DRY PINEY UNIT 27
00457    2760    DRY PINEY UNIT 22
00457    2760    DRY PINEY UNIT 22
00457    2168    DRY PINEY UNIT 22
00457    2168    DRY PINEY UNIT 22
00456    2168    DRY PINEY UNIT 13
00455    2168    DRY PINEY UNIT 10
03932    2168    CLIFTON FEDERAL 34-3
03901    2168    HAGOOD FEDERAL 12-2
03890    2896    PANDO FEDERAL 32-2
03890    2896    PANDO FEDERAL 32-2
03889    2168    CLIFTON FEDERAL 28-2
03887    2168    BRUFF UNIT 21
03887    2168    BRUFF UNIT 21
03885    2168    BRUFF UNIT 19
03884    2168    BRUFF UNIT 18
03847    2168    HALEY FEDERAL 4-2
03833    2168    CUMMINGS FEDERAL 2-8
03828    2168    LAWLER FED 2-32
03762    2896    MFS FEE 10-2
03762    2896    MFS FEE 10-2
03725    2168    CHAMP 149 AMOCO B-2
01706    2168    CH BUTTES #1-9
00207    5848    BRUFF UNIT 1
00189    2168    BRUFF UNIT 7
02052    2896    HENRY FORK UNIT 12
01829    2896    HENRY FORK UNIT 11
00620    2896    HENRY FORK UNIT 4A
00619    2896    HENRY FORK UNIT 1

 

A-9


Non-Wexpro Agreement receipt points.

 

Well
Num
   Form
Code
   Well Name
02217    0784    CHIVINGTON 1
00949    0912    JOYCE WOLF 2
00942    0912    KLAENHAMMER 2
01471    1464    IMPERIAL FED 2-12
01471    1464    IMPERIAL FED 2-12
00944    0912    PTASYNSKI 4
01769    0912    POWDER WASH MS 44
00946    0912    KLAENHAMMER 3
01770    0912    MILLISON 1
00947    0912    PTASYNSKI 2
02187    0912    V M KLAENHAMMER 1
00931    0912    PTASYNSKI 5
01771    0912    JOYCE WOLF 1
00945    0912    PTASYNSKI 3
02125    0912    PTASYNSKI 1X
02125    0912    PTASYNSKI 1X
00948    0912    JOYCE WOLF 3
01773    8500    POWDER WASH MS 58
00943    0912    JOYCE WOLF 4
03906    8500    BIG GULCH MS 61
01799    8500    W SIDE CANAL MS 41
01214    1464    W SIDE CANAL UN 13
01214    1464    W SIDE CANAL UN 13
01214    1464    W SIDE CANAL UN 13
01716    1464    W SIDE CANAL UN 16
01716    1464    W SIDE CANAL UN 16
01716    1464    W SIDE CANAL UN 16
01717    1464    W SIDE CANAL UN 15
01717    1464    W SIDE CANAL UN 15
01717    1464    W SIDE CANAL UN 15
01216    1464    W SIDE CANAL UN 14
01216    1464    W SIDE CANAL UN 14
01717    8536    W SIDE CANAL UN 15
01717    8536    W SIDE CANAL UN 15
01717    8536    W SIDE CANAL UN 15
01214    1512    W SIDE CANAL UN 13
01214    1512    W SIDE CANAL UN 13
01214    1512    W SIDE CANAL UN 13
01716    8536    W SIDE CANAL UN 16
01716    8536    W SIDE CANAL UN 16
01716    8536    W SIDE CANAL UN 16
01216    1512    W SIDE CANAL UN 14

 

A-10


Well
Num
   Form
Code
   Well Name
01216    1512    W SIDE CANAL UN 14
03783    1464    W SIDE CANAL UN 3
01215    1512    GLADHILL DR ST 1-13
03907    2168    RUTH SWEZEY 1B
03908    2168    RUTH SWEZEY 1C
02054    1464    RUTH SWEZEY 2
01212    1512    W SIDE CANAL JONS 2
01798    1512    W SIDE CANAL MS 47-1
01801    8500    W SIDE CANAL MS 47
02258    1464    RUTH SWEZEY 2 LP
02258    1464    RUTH SWEZEY 2 LP
01213    1512    W SIDE CANAL JONS 3
01872    1512    BAGGS LND & CATTLE 1
01869    8520    DRIPPING ROCK UNIT 1
01867    8520    DRIPPING ROCK UNIT 3
03823    8520    DRIPPING ROCK 23-5
03955    8500    CELSIUS FED 4-1 TAP
03955    8500    CELSIUS FED 4-1 TAP
03897    8520    RUGER FEDERAL #24-32
00941    0912    PDR WASH GOV’T 33-7
02383    0784    ACE UNIT 5
00662    0912    JACKS DRAW UNIT 8
02314    0912    ROSS GOV’T 44-7
01710    0912    AMOCO FEDERAL 20-9
00661    0912    JACKS DRAW UNIT 5
00937    0912    MARLIN GOVERNMENT 1
00933    0912    HUBER STATE 2
00003    0912    ACE UNIT WELL 3
00930    0912    HUBER CHAPMAN ST 1
00002    0912    ACE UNIT WELL 2
00935    1464    MTN FUEL FED 1-12
00935    1464    MTN FUEL FED 1-12
00938    0912    ROSS GOV’T 43-7
00932    0912    HUBER CHAPMAN ST 2
00001    0912    ACE UNIT WELL 1
02238    8500    POWDER WASH MS 140
00527    0784    V SCHAICK C GOVT 5
00529    0784    F S DUNCAN B 2
00528    0784    F S DUNCAN B 3
01083    1600    GRYNBERG STATE LD 1
01256    0912    LION OIL GOV’T 3
01255    0912    LION OIL GOV’T 2
01254    0912    LION OIL GOV’T 1
01251    0912    HIAWATHA GOV’T B-1

 

A-11


Well
Num
   Form
Code
   Well Name
01251    0912    HIAWATHA GOV’T B-1
01242    0912    DUNCAN UNIT 1-1
01084    1600    DYER C GOV’T 1
01250    0912    A P VAN SCHAICK A 3
01250    0912    A P VAN SCHAICK A 3
03362    0912    FEDERAL 1-21
03362    0912    FEDERAL 1-21
03362    0912    FEDERAL 1-21
01246    0912    F S DUNCAN B-6
01481    0784    H W OBORNE 2
01252    0912    H W OBORNE NO 1
03905    8500    W HIAWATHA COMP #2
01251    0784    HIAWATHA GOV’T B-1
01251    0784    HIAWATHA GOV’T B-1
01247    0912    D VAN SCHAICK 1
01247    0912    D VAN SCHAICK 1
01478    1600    UNIVERSAL RES 1-3
03362    1512    FEDERAL 1-21
03362    1512    FEDERAL 1-21
03362    1512    FEDERAL 1-21
00668    2896    KINNEY UNIT 4
01111    1600    TRAIL UNIT 4
00663    2168    KINNEY UNIT 1
00663    2168    KINNEY UNIT 1
01109    1600    TRAIL UNIT 2
01114    1600    TRAIL UNIT 8
01110    1600    TRAIL UNIT 3
00667    2896    KINNEY UNIT 2
00663    3944    KINNEY UNIT 1
00663    3944    KINNEY UNIT 1
01479    1600    TRAIL UNIT 13
00664    1600    PIONEER UNIT 3
00665    1600    PIONEER UNIT 4
00854    1600    PIONEER UNIT 8
00854    1600    PIONEER UNIT 8
02118    1600    TRAIL UNIT 12
01113    1600    TRAIL UNIT 6
01223    1600    VERMILLION CR UNIT 1
00669    2896    KINNEY UNIT 5
00674    2896    KINNEY UNIT 6
00980    2168    HUGHS UNIT 1
01473    2896    SALT WELLS 11-11
00977    3128    HUSKY FEDERAL 15-10
01015    2168    SO BAXTER UNIT 3

 

A-12


Well
Num
   Form
Code
   Well Name
01018    2168    A COOPER 1
00999    2896    SO BAXTER UNIT 15
01016    2168    SO BAXTER UNIT 6
00685    1600    JACKKNIFE SPRINGS 1
01020    2168    Al POSTON A 2
01020    2168    Al POSTON A 2
02093    2168    SO BAXTER UNIT 16
02093    2168    SO BAXTER UNIT 16
01019    2168    WT NIGHTINGALE A 1
01033    2168    SO BAXTER UNIT 8
01014    2168    SO BAXTER UNIT 2
01025    2168    UP 21-16-104 2
01000    2896    SO BAXTER UNIT SR 1
01021    2168    AJ POSTON A 3
01028    2168    SO BAXTER UNIT 9
02093    2896    SO BAXTER UNIT 16
02093    2896    SO BAXTER UNIT 16
01029    2168    WE MULLEN A 2
01026    2168    MF WHELAN 1
01030    2168    SL 10-17-104 1
00686    1600    JACKKNIFE SPRINGS 2
01022    2168    U P 11-16-104-1
01837    2168    SO BAXTER UNIT 17
01475    2168    CREST FEDERAL 1-24
00988    2896    LEAR FEDERAL 1-30
00986    2168    POLUMBUS GOV’T 31-1
00990    2168    TENNECO FEDERAL 1-30
00987    2168    POLUMBUS GOV’T 19-1
00989    2168    MTN FUEL FED 1-20
00985    2168    POLUMBUS GOV’T 30-1
03372    2896    N NITCHIE GULCH 20-6
03372    2896    N NITCHIE GULCH 20-6
00758    2896    NITCHIE GULCH 2
00758    2896    NITCHIE GULCH 2
03337    2168    N NITCHIE GULCH 2-5
03380    2168    NITCHIE GULCH 20-19
00756    2168    SAND DUNES FED 1
00770    2168    WC MCBRIDE GOV’T 1-5
03594    2896    NITCHIE GULCH 22-8
03378    2896    ROGERS FED 20-12
03488    2896    NITCHIE GULCH 21-21
03488    2896    NITCHIE GULCH 21-21
00773    2168    JAMIESON A 1
00757    2896    NITCHIE GULCH 1

 

A-13


Well
Num
   Form
Code
   Well Name
00757    2896    NITCHIE GULCH 1
01730    2168    NITCHIE GULCH 12-18
03391    2896    N NITCHIE 30-6
01731    2168    NITCHIE GULCH 13-20
00762    2168    NITCHIE GULCH 6
03372    2168    N NITCHIE GULCH 20-6
03372    2168    N NITCHIE GULCH 20-6
00764    2168    NITCHIE GULCH 8
03368    2896    NITCHIE GULCH 19-7
00767    2168    ROGERS GOV’T 1-12
02045    2168    NITCHIE GULCH 14-7
00760    2896    NITCHIE GULCH 4
00760    2896    NITCHIE GULCH 4
02072    2168    FEDERAL 15-8X
00757    2168    NITCHIE GULCH 1
00757    2168    NITCHIE GULCH 1
02262    2168    NO NITCHIE GULCH 2-6
00760    2168    NITCHIE GULCH 4
00760    2168    NITCHIE GULCH 4
02288    2896    NITCHIE GULCH 3-21
00763    2168    NITCHIE GULCH 7
02294    2168    NITCHIE GULCH 17-16
02294    2168    NITCHIE GULCH 17-16
00769    2168    ANDERSON GOV’T 1
02315    2168    NITCHIE GULCH 30-31
02315    2168    NITCHIE GULCH 30-31
03488    2168    NITCHIE GULCH 21-21
03488    2168    NITCHIE GULCH 21-21
03346    2896    NITCHIE GULCH 10-32
00765    2168    NITCHIE GULCH 11
00758    2168    NITCHIE GULCH 2
00758    2168    NITCHIE GULCH 2
03645    2168    N NITCHIE 3-5 FED
03343    2168    NITCHIE GULCH 10-31
02316    2896    PINE CANYON 40-31
00846    2896    PINE CNYN LUFF 1-9
00843    2896    PINE CANYON UNIT 1
03338    8500    W PINE CANYON 10-5
03338    8500    W PINE CANYON 10-5
03377    2896    W PINE CYN 9-32
03377    2896    W PINE CYN 9-32
03347    2896    UPRR 1-33
03379    2896    UPRR #1 1-3
02313    2168    NITCHIE GULCH 18-29

 

A-14


Well
Num
   Form
Code
   Well Name
02313    2168    NITCHIE GULCH 18-29
03382    2168    W PINE CYN 10-5 X FS
02311    2896    NO. 1 UPRR 1-27
03384    2168    PINE CANYON 10-29
03384    2168    PINE CANYON 10-29
03355    2896    UPRR 2 2-33
03355    2896    UPRR 2 2-33
03384    2896    PINE CANYON 10-29
03384    2896    PINE CANYON 10-29
02239    2896    NITCHIE GULCH 16-28
02239    2896    NITCHIE GULCH 16-28
03386    2168    PINE CANYON 8-28
03386    2168    PINE CANYON 8-28
03361    2168    PINE CANYON 6-32
03361    2168    PINE CANYON 6-32
03386    2896    PINE CANYON 8-28
03386    2896    PINE CANYON 8-28
03389    2168    FEDERAL 1-28
03389    2168    FEDERAL 1-28
03387    2168    UPRR 3-33
03387    2168    UPRR 3-33
00850    2896    PINE CNYN LUFF 2-17
03387    2896    UPRR 3-33
03387    2896    UPRR 3-33
00847    2896    PINE CNYN LUFF 1-17
03389    2896    FEDERAL 1-28
03389    2896    FEDERAL 1-28
03388    2168    UPRR-TERRA 1 41 F-7
03388    2168    UPRR TERRA 1 41 F-7
03397    2168    W PINE CANYON 30-31
02312    2168    PINE CANYON 4-29
03491    2896    PINE CANYON 4-33
03491    2896    PINE CANYON 4-33
03357    2896    W PINE CANYON 30-5
03662    3144    FEDERAL 18-H
03361    2896    PINE CANYON 6-32
03361    2896    PINE CANYON 6-32
00724    2896    LEUCITE HILLS 2
00849    2896    CENEX STATE 4-16
00723    2168    LEUCITE HILLS 1
00723    2168    LEUCITE HILLS 1
02313    2896    NITCHIE GULCH 18-29
02313    2896    NITCHIE GULCH 18-29
00437    2896    LEUCITE HILLS 1-33

 

A-15


Well
Num
   Form
Code
   Well Name
02239    2168    NITCHIE GULCH 16-28
02239    2168    NITCHIE GULCH 16-28
00272    2896    LEUCITE HILLS 1-19
03338    2896    W PINE CANYON 10-5
03338    2896    W PINE CANYON 10-5
03377    2168    W PINE CYN 9-32
03377    2168    W PINE CYN 9-32
03355    2168    UPRR 2 2-33
03355    2168    UPRR 2 2-33
03735    8500    CEDAR CYN 30-16 TAP
00447    2168    HALEY FEDERAL 4-1
00189    2168    BRUFF UNIT 7
00213    2168    BRUFF UNIT 9
00752    2168    CLIFTON FEDERAL 28-1
02066    2168    OWEN FEDERAL 1-18
00199    2896    CHAMPLIN 358 G-1
01707    2168    CPC 1-5 UPRR
01707    2168    CPC 1-5 UPRR
00439    2168    BRUFF FEDERAL 2-26
00754    2168    MATHERLY FEDERAL 1-6
00429    2168    CLIFTON FEDERAL 34-1
03762    2896    MFS FEE 10-2
03762    2896    MFS FEE 10-2
00229    2896    DONLEY (NCT #2) 1
00229    2896    DONLEY (NCT #2) 1
01707    2896    CPC 1-5 UPRR
01707    2896    CPC 1-5 UPRR
00216    2168    BRUFF UNIT 6
03833    2168    CUMMINGS FEDERAL 2-8
01706    2168    CH BUTTES #1-9
02201    2168    THOMPSON FED 12-1
02201    2168    THOMPSON FED 12-1
00214    2168    BRUFF CHAMPLIN 1-27
00619    2896    HENRY FORK UNIT 1
00619    2896    HENRY FORK UNIT 1
01413    2896    MARATHON FED 1-16
02071    2896    CONOCO 20-2
02193    2896    HENRY FORK UNIT 15
02191    2896    CONOCO FEDERAL 19-3
00185    2896    BUTCHERKNIFE SPR 6
00231    2896    BUTCHERKNIFE SPR 5
00231    2896    BUTCHERKNIFE SPR 5
01442    2896    BUTCHERKNIFE SPR 8
01834    2896    BUTCHERKNIFE SPR 9

 

A-16


Well
Num
   Form
Code
   Well Name
02192    2896    TAYLOR RANCH 25-33
00971    4256    RYCKMAN CREEK 23
01402    3944    CHAMPLIN 372 D-1
01402    3944    CHAMPLIN 372 D-1
00019    3784    CHAMP 372 AMOCO B-1
00017    3944    ISLAND RANCHING B-1
01402    8500    CHAMPLIN 372 D-1
01402    8500    CHAMPLIN 372 D-1
00014    3784    ANSCHUTZ RANCH 34-1
00022    3944    CHAMP 387 AMOCO B-1
00012    3784    CHAMPLIN 372 C-1
03398    8500    DIVIDE CR CK STATION
01595    2896    SHAEFFER NO 1
02080    2416    LOWER HORSE DRAW A 5
01654    2416    LOWER HORSE DRAW E 3
03331    2896    RABBIT MOUNTAIN 6-1
01653    2416    LOWER HORSE DRAW A 7
01663    2416    LOWER HORSE DRAW A 9
01650    2416    LOWER HORSE DRAW B15
01660    2416    LOWER HORSE DRAW A14
01648    2416    LOWER HORSE DRAW A 6
01657    2416    LOWER HORSE DRAW C19
01647    2416    LOWER HORSE DRAW A 4
01666    2416    LOWER HORSE DRAW D17
01646    2416    LOWER HORSE DRAW B16
01658    2416    LOWER HORSE DRAW A12
01662    2416    LOWER HORSE DRAW B11
01656    2416    LOWER HORSE DRAW C20
00693    2416    LOWER HORSE DRAW D18
01391    0784    CHAPITA UNIT 217-23
03920    0784    CHAPITA UNIT 339-25
03937    0784    CHAPITA UNIT 324-22
03819    0784    CHAPITA UNIT 312-23
03820    0784    CHAPITA UNIT 319-14
00289    0784    CHAPITA UNIT 7
03821    0784    CHAPITA UNIT 321-26
00294    0784    CHAPITA UNIT 13
03822    0784    CHAPITA UNIT 323-22
00299    0784    CHAPITA UNIT 21
03893    0784    CHAPITA UNIT 306-27
00301    0784    CHAPITA UNIT 24
03894    0784    CHAPITA UNIT 307-28
00306    0784    CHAPITA UNIT 15
03917    0784    CHAPITA UNIT 311-26

 

A-17


Well
Num
   Form
Code
   Well Name
00308    0784    CHAPITA UNIT 17
03919    0784    CHAPITA UNIT 308-21
00310    0784    CHAPITA UNIT 31-14
03754    0784    CONOCO BLACK 6-35
00312    0784    CHAPITA UNIT 35-15
00287    0784    CHAPITA UNIT 5
00314    0784    CHAPITA UNIT 36-26
03938    0784    CHAPITA UNIT 342-22
00316    0784    CHAPITA UNIT 38-9
03962    0784    STAGECOACH UN 41-20
00319    0784    CHAPITA UNIT 44-10
03963    0784    CHAPITA UNIT 327-23
00321    0784    CHAPITA UNIT 48-19
03966    0784    CHAPITA UNIT 326-24
00324    0784    BELCO 42-13
03967    0784    CHAPITA UNIT 334-2
00332    0784    CHAPITA UNIT 43-11
03979    0784    CHAPITA UNIT 343-15
00334    0784    CHAPITA UNIT 58-19
03980    0784    CHAPITA UNIT 344-23
01385    0784    CHAPITA UNIT 234-23
03982    0784    CHAPITA UNIT 346-26
01388    0784    CHAPITA UNIT 226-3
03983    0784    CHAPITA UNIT 347-26
01390    0784    CHAPITA UNIT 219-15
03984    0784    CHAPITA UNIT 348-23
01392    0784    CHAPITA UNIT 224-10
03985    0784    CHAPITA UNIT 349-27
01394    0784    CHAPITA UNIT 52-33
03986    0784    CHAPITA UNIT 350-14
01445    0784    CHAPITA UNIT 231-15
03994    0784    CHAPITA UNIT 351-15
01561    0784    CHAPITA UNIT 228-9
00279    0784    DUNCAN FEDERAL 33-9
01723    0784    CHAPITA UNIT 236-13
00326    0784    MOUNTAIN LION 34-2
01843    0784    CHAPITA UNIT 238-16
00327    0784    FEDERAL 35-5
02076    0784    CHAPITA UNIT 239-9
00328    0784    PINNECOOSE 6-3
02078    0784    CHAPITA UNIT 240-16
00329    0784    ANKERPONT 2-6
03764    0784    CHAPITA UNIT 301-26
00745    0784    STAGECOACH UNIT 21-8

 

A-18


Well
Num
   Form
Code
   Well Name
02246    8500    MS 203 WHITE RIVER
00774    0784    CONOCO WEEKS 6-29
00296    0784    CHAPITA UNIT 16
00775    0784    PAWWINNEE 3-10
00305    0784    CHAPITA UNIT 56-29
00776    0784    CONOCO 35-19
00309    0784    CHAPITA UNIT 30-22
00777    0784    CONOCO JENKS 5-11
00313    0784    CHAPITA UNIT 32-21
00778    0784    UTE TRIBAL 35-16
00318    0784    CHAPITA UNIT 34-28
00779    0784    UTE TRIBAL 6-1
00323    0784    CHAPITA UNIT 40-27
00781    0784    ANKERPONT 31-12
00333    0784    CHAPITA UNIT 49-25
00783    0784    DM ICE FRIDAY 34-22
01386    0784    CHAPITA UNIT 225-2
00784    0784    SNOW KNIGHT 4-23
03779    0784    ANKERPONT 35-36
00785    0784    CONOCO POST 3-24
01444    0784    CHAPITA UNIT 229-12
00786    0784    CONOCO WYASKET 33-26
01562    0784    CHAPITA UNIT 231-14
00787    0784    CONOCO KURIP 1-27
02075    0784    CHAPITA UNIT 244-25A
00789    0784    CONOCO TABBEE 34-20
03763    0784    CHAPITA UNIT 304-13
00790    0784    CONOCO WISSIUP 36-15
00292    0784    CHAPITA UNIT 11
00791    0784    CONOCO WELL 36-17
00307    0784    CHAPITA UNIT 20
00792    0784    CONOCO HALL 31-18
00315    0784    CHAPITA UNIT 37-11
00793    0784    CONOCO STATE 32-21
00330    0784    CHAPITA UNIT 47-30
00955    0544    FS PRINCE 1
01389    0784    CHAPITA UNIT 227-3
01041    0784    BELCO 18-17
01446    0784    CHAPITA UNIT 233-15
01050    0784    STAGECOACH UNIT 6
02077    0784    CHAPITA UNIT 241-16
01430    0784    CONOCO STATE 31-32
00300    0784    CHAPITA UNIT 22
01778    8500    RIVER BEND MS 112

 

A-19


Well
Num
   Form
Code
   Well Name
00320    0784    CHAPITA UNIT 45-25
01779    8500    RIVER BEND MS 113
01393    0784    CHAPITA UNIT 220-10
01789    0784    STAGECOACH UN 22-17
03765    0784    CHAPITA UNIT 303-22
01823    0784    CONOCO SERAWOP 4.13
01385    0784    CHAPITA UNIT 234-23
00311    0784    CHAPITA UNIT 33-16
01724    0784    CHAPITA UNIT 237-22
02109    8500    HORSESHOE BND MS 205
02324    0784    LITTLE PAPOOSE 1-26
01761    8500    OLD SQUAW MS 79
02063    2264    MT RESOURCE 22,27 MM
02043    2264    MTN RESOURCE 18
02321    2264    GOV’T 1
01857    2264    MNT RESOURCE 20
02319    2264    CONOVER STATE 1-22
01856    2264    MNT RESOURCE 19
02317    2264    SINGLETON FEE 23-14
01855    2264    MT RESOURCE 17,12 MM
02086    2264    MTN RESOURCE 27
01819    2264    MTN RESOURCE 16
02320    2264    FERRON UNIT 12-3
01406    2264    MTN RESOURCE 2
02087    2264    MT RESOURCE 18,21 MM
02318    2264    BEHLING 41-22
02322    2264    RALPHS FEE 41-9
01740    8500    CLEAR CREEK MM
00033    2168    AMOCO CHAMPLIN 4-25
00006    0912    ACE UNIT WELL 7
00211    2168    BRUFF UNIT A-1
00212    2168    BRUFF UNIT 5
00216    2168    BRUFF UNIT 6
00217    2168    BRUFF UNIT 4
03847    2168    HALEY FEDERAL 4-2
03932    2168    CLIFTON FEDERAL 34-3
03940    2168    BRUFF FEDERAL 3-26
03940    2168    BRUFF FEDERAL 3-26
03941    2168    BRUFF FEDERAL 4-26
03957    2168    CLIFTON FEDERAL 34-4
03991    2896    MFS FEE 10-3
03991    2896    MFS FEE 10-3
00668    2896    KINNEY UNIT 4
00667    2896    KINNEY UNIT 2

 

A-20


Well
Num
   Form
Code
   Well Name
01721    8520    KINNEY UNIT WELL 3
00669    2896    KINNEY UNIT 5
00674    2896    KINNEY UNIT 6
00664    1600    PIONEER UNIT 3
00665    1600    PIONEER UNIT 4
00854    1600    PIONEER UNIT 8
00854    1600    PIONEER UNIT 8
01031    2168    SL 36-18-104 2
02316    2896    PINE CANYON 40-31
02294    2896    NITCHIE GULCH 17-16
02294    2896    NITCHIE GULCH 17-16
03830    2168    LANSDALE FED 4-2
03959    2168    LANSDALE FED 10-3
03960    2168    LANSDALE FED 10-4
03829    2168    LANSDALE FED 28-2
04001    2168    LANSDALE FED 28-3
03828    2168    LAWLER FED 2-32
01832    2168    HARDY RANCH NO. 1

DELIVERY POINTS

Delivery points associated with Wexpro Agreement.

 

ID    Well Name
35    POWDER WASH MM
38    PW L.336 DEHY MS#23
41    EAST HIAWATHA MM
42    HIAWATHA DEEP CM
44    SUGAR LOAF MM
45    JL 6 OTHER HIAWATHA
47    W. HIAWATHA COMPR #2
49    TRAIL UNIT MM
50    KINNEY CHECK METER
59    SOUTH BAXTER
60    MIDDLE BAXTER MM
63    NORTH BAXTER MM
64    LOWER NITCHIE AREA
65    CLAY BASIN FRONTIER
70    IL. 35 BYPASS
72    ET OUTLET
73    HENRY’S FORK MM

 

A-21


ID    Well Name
74    BUTCHERKNIFE #6
75    BUTCHERKNIFE #5
111    BIG HORSE DRAW MM
114    RABBIT MOUNTAIN MM
119    FIDLAR OURAY/CHAPITA
125    ISLAND 52-1
127    ISLAND 52-2
129    ISLAND 52-3
131    ISLAND 52-4
155    SPEARHEAD LAT 701
183    DOVE CREEK

Non-Wexpro Agreement Delivery Points.

 

ID    Well Name
2    BIG GULCH MM #61
9    WESTSIDE CANAL MS 41
10    GLAD HILL DRAW 1-13
11    SWEZEY MM #47 W.S.C
12    M.S. NO. 45
14    POLE GULCH MS 53
23    CELSIUS DRIP RCK TAP
26    DRIPPING ROCK #3
31    DRIPPING ROCK 23-5
32    CELSIUS FED 4-1
33    RUGER 24-32
35    POWDER WASH MM
35    POWDER WASH MM
38    PW L.336 DEHY MS#23
38    PW L.336 DEHY MS#23
41    EAST HIAWATHA MM
43    VERMILLION COMP MM
44    SUGAR LOAF MM
45    JL 6 OTHER HIAWATHA
47    W. HIAWATHA COMPR #2
49    TRAIL UNIT MM
50    KINNEY CHECK METER
53    HUGHS UNIT 1
54    SALT WELLS 11-11
55    HUSKY FEDERAL 15-10
59    SOUTH BAXTER
60    MIDDLE BAXTER MM
61    UPPER NITCHIE AREA

 

A-22


ID    Well Name
64    LOWER NITCHIE AREA
70    JL 35 BYPASS
72    ET OUTLET
73    HENRY’S FORK MM
74    BUTCHERKNIFE #6
75    BUTCHERKNIFE #5
76    BUTCHERKNIFE #8
78    BUTCHERKNIFE #9
80    LUCKEY DITCH C.M.
85    RYCKMAN CREEK MM
93    ANSCHUTZ RANCH MM
99    DIVIDE CR CK STATION
101    SHAEFFER NO 1
114    RABBIT MOUNTAIN MM
119    FIDLAR OURAY/CHAPITA
133    OLD SQUAW M&R MS 219
134    RIVER BEND MM
148    FERRON MM
151    CLEAR CREEK MM
155    SPEARHEAD LAT 701
188    CHAMPLIN 4-25

 

A-23


APPENDIX B

TO THE

GAS GATHERING AGREEMENT

DATED: OCTOBER 11, 1993

BETWEEN

MOUNTAIN FUEL SUPPLY COMPANY

AND

QUESTAR PIPELINE COMPANY

GATHERING RATE DETERMINATION

The reservation and usage rates to be charged for gathering natural gas under the terms of this Agreement shall be determined according to the following provisions and guidelines.

1. The calculation of the gathering rates under § III(a) of the Agreement shall incorporate data and accounting and other information for the most recent calendar year for which complete data are available. For the initial rates, this will be the calendar year 1992, as adjusted to reflect the elements incorporated and approved in FERC Docket No. RS92-9. For subsequent rate determinations under this Agreement, such information shall be adjusted as necessary to reflect known and measurable changes1 in Questar’s gathering operations that will be effective during the years for which rates are to be in effect. Such changes shall be consistent with the provisions of ¶¶ 2 and 3.

2. The net costs to be included in determining the gathering rates shall include: (a) operating and maintenance expenses; (b) depreciation and amortization expenses; (c) taxes other than income taxes; (d) return on rate base; (e) federal and state income taxes; and (f) other operating revenue credits.

3. For purposes of ¶ 2, the following guidelines will apply:

(a) Operation and Maintenance (O&M) Expenses. These expenses include gathering expenses recorded in FERC Account Nos. 750-754 and 756-769 and 807, including administrative and general (A&G) expenses in Account Nos. 920-932 (excluding 924.1, 928.1, 928.2 and 920.3) and 935.

(b) Depreciation and Amortization Expense. This includes gathering expenses recorded in FERC Account Nos. 403 and 404, including general and intangible amortization expense.

(c) Taxes Other Than Income Taxes. This includes gathering expenses recorded in FERC Account Nos. 408.1 and 408.9, including payroll and property tax expense associated with general plant.

 

 

1  This shall include, but not be limited to, year-end annualization of labor costs; prior-period adjustments; removal of Cost or revenue abnormalities; depreciation and costs associated with capital investments for system additions.

 

B-1


(d) Federal and State Income Taxes. Questar Pipeline’s combined federal and state income tax rate shall be applied to the equity portion of the return on rate base.

(e) Rate Base. The end-of-period rate base shall be determined from accounting data for the last month for which data are being used pursuant to ¶ 1 above (adjusted as necessary pursuant to that paragraph) and shall include that portion of the following that are directly related or allocable to the gathering services performed under this Agreement:

(i) Gas plant,

(ii) Accumulated depreciation and amortization,

(iii) Working capital,

(iv) Deferred income taxes, and

(v) Questar’s general and intangible plant

(f) Rate of Return. The rate of return on rate base shall be the pre-tax rate of return specified for or derivable from the FERC’s determination of Questar’s transmission-service rates as they are effective at the end of the period. This shall incorporate:

 

  (i) The actual, embedded costs of debt and preferred stock dividend (if any) for Questar Pipeline Company.

 

  (ii) Questar Pipeline Company’s actual, end-of-period capital structure.

(g) The costs of Questar’s gathering activities determined under this Appendix shall be reduced by other operating revenues that are directly related to those costs.

 

B-2


Mountain Fuel Gathering Rates – Effective through August 31, 1995

 
     Rate2      Quantity3     Revenue  

Reservation Charge

   $ 2.61642/Dth         322,812      $ 10,135,325   

Usage Charge

   $ 0.22273/Dth         30,336,677 4    $ 6,756,883   

Other Revenue

        $ 2,500,000   

Total Revenue

        $ 19,392,208   

 

2  Rates have been derived from the cost of service, revenues, and volumes for the 12 months ended December 1992. The total gathering cost of service includes $1,255,122 of costs refunctionalized from the production function to the gathering function consistent with internal rates established in Docket No. RS92-9 (refer to page 1 of Exhibit G, of Questar’s October 1, 1992, filing in Docket No. RS92-9).
3  Quantities are stated in “dry” decatherms.
4  The usage quantity for this rate-design period is a projection of both Mountain Fuel’s own production and its purchased gas. (Projections are for rate-design purposes only; actual commodity quantities gathered will be used for billing purposes.) The projection of Questar-gathered Mountain Fuel production was taken from the most recent IRP or IRP update on file with the Public Service Commission of Utah. The Mountain Fuel purchased gas to be gathered by Questar was a projection developed by Questar’s Accounting Department from actual 1992 data.

 

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APPENDIX C

TO THE

GAS GATHERING AGREEMENT

DATED: OCTOBER 11, 1993

BETWEEN

MOUNTAIN FUEL SUPPLY COMPANY

AND

QUESTAR PIPELINE COMPANY

NEW WELL CONNECTION

REIMBURSEMENT UNDER § III(c)

For any new well to be connected to Questar’s gathering system under this Agreement that was not subject to this Agreement on the initial effective date, Mountain Fuel shall reimburse Questar according to the following formula:

 

where

 

  Cr    =    Amount to be reimbursed by Mountain Fuel to Questar.
  C    =    Total actual cost of all new Questar gathering facilities required to connect the new well.
  t    =    Combined marginal state and federal income tax rate applicable to Questar in the year of the well connection (as a decimal fraction).
  f    =    “Deficiency factor” = Lesser of 1.0 or B ÷ 2,000,
  B    =    “Baseline flow” = (F ÷ L) x I.
  F    =    Average daily production of the well during a period of 30 consecutive days (to be designated by Mountain Fuel) during the first 12 months following connection of the well (in MMBtu/day).
  L    =    Length of new gathering lateral to be installed by Questar to connect the new well to its gathering system (in miles).
  J    =    Mountain Fuel’s working interest in the well to be connected (as a decimal fraction).

 

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