Questar Southern Trails Pipeline Eastern Segment Impairment (Notes)

3 Months Ended

Mar. 31, 2014

Strategic Review of Questar Southern Trails Pipeline and Impairment of Eastern Segment [Abstract]

Questar Southern Trails Pipeline Eastern Segment Impairment

Note 11 - Questar Southern Trails Pipeline Eastern Segment Impairment

During the third quarter of 2013, Questar Pipeline updated its five-year forecast for the eastern segment of Southern Trails Pipeline, which resulted in revised projections of higher operating expenses including right-of-way and pipeline safety costs. Current and projected market rates for natural gas transportation between the San Juan Basin and California markets do not cover these increasing operating expenses. Because of changes in expected cash flows in the third quarter of 2013 and the lack of progress in selling or recontracting this pipeline, Questar Pipeline recorded a noncash impairment of its entire investment in the eastern segment of Southern Trails Pipeline of $80.6 million, or $52.4 million after income taxes. Questar Pipeline used a probability-weighted discounted cash flow analysis that included significant inputs such as Questar Pipeline's cost of capital and assumptions regarding future transportation rates and operating costs.