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Strategic Review of Questar Southern Trails Pipeline
6 Months Ended
Jun. 30, 2013
Strategic Review of Questar Southern Trails Pipeline [Abstract]  
Strategic Review of Questar Southern Trails Pipeline
Note 12 - Strategic Review of Questar Southern Trails Pipeline

In the fourth quarter of 2012, Questar Pipeline initiated a strategic review of Questar Southern Trails Pipeline. All strategic options were analyzed, including joint ventures, asset sales or other alternatives. The western segment of Southern Trails Pipeline runs 96 miles from Whitewater to Long Beach, California. This segment has not been placed in service. The eastern segment of Southern Trails Pipeline runs 487 miles from the San Juan Basin in New Mexico to connections with other pipelines in the eastern portion of southern California.

As a result of that review, Questar Pipeline entered into an agreement with another pipeline company to evaluate and potentially convert the western portion of its Southern Trails Pipeline back to its original purpose as a crude oil transport pipeline and to develop a rail terminal to offload crude from railcars and into the pipeline for transportation to refineries in Long Beach, California. Questar Pipeline's net book value of the western segment of Southern Trails Pipeline is approximately $21 million.

Questar Pipeline is also in discussions with parties to either purchase the eastern segment of Southern Trails Pipeline or to enter into a long-term transportation contract for the full capacity of the pipeline. Questar Pipeline's net book value of the eastern segment of Southern Trails Pipeline is approximately $81 million.

Current expectations of future net cash flows from the western and eastern segments show that the carrying values are recoverable assuming the projects described above are successful. However, asset impairments may be indicated if the projects are not successful.