Related Party Transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Related-Party Transactions

Questar Gas provided technical services to its affiliates at its cost and charged $4.5 million for the first nine months of 2016, compared to $4.8 million for the same period of 2015, and charged $1.3 million for the third quarter of 2016 compared to $1.1 million for the third quarter of 2015. The majority of these costs are allocated. The allocation methods are based on the specific nature of the charges. Management believes that the allocation methods are reasonable.

Questar Gas has reserved transportation capacity on Questar Pipeline's system for 956 Mdth per day during the heating season and 841 Mdth per day during off-peak months. Questar Gas periodically releases excess capacity and receives a credit from Questar Pipeline for the released capacity revenues and a portion of Questar Pipeline's interruptible transportation revenues. Questar Gas' payment for transportation, storage and processing services provided by Questar Pipeline were $17.3 million and $53.9 million for the three and nine months ended September 30, 2016, respectively, compared to $17.5 million and $54.3 million for the three and nine months ended September 30, 2015. The costs of these services were included in the cost of natural gas sold.

The amounts that Questar Gas paid Wexpro for the operation of cost-of-service gas properties were $236.4 million and $241.0 million for the nine months ended 2016 and 2015, respectively, and $77.7 million and $80.7 million for the three months ended September 30, 2016 and 2015, respectively. Questar Gas reports these amounts in the cost of natural gas sold.

Affiliated companies charged Questar Gas for certain administrative and communication functions amounting to $22.7 million and $41.0 million for the three and nine months ended September 30, 2016, respectively, compared to $13.8 million and $42.9 million for the same prior year periods. These costs are included in other operations and maintenance. The administrative charges are generally allocated based on each affiliated company's proportional share of revenues less product costs; property, plant and equipment; and labor costs. Management believes that the allocation method is reasonable.

The Dominion Questar Combination resulted in merger and restructuring costs of $9.7 million charged from Dominion Questar for both the three and nine months ended September 30, 2016. There were no merger and restructuring costs for the same prior year periods. These costs primarily consist of employee related costs allocated to Questar Gas and are included in other operations and maintenance.

Questar Gas participates in certain Dominion Questar benefit plans. Amounts due from Dominion Questar associated with these benefit plans were $72.6 million and $67.5 million at September 30, 2016 and December 31, 2015, respectively. These amounts are included in noncurrent receivable from affiliates and current receivable from affiliates, respectively, on Questar Gas' Condensed Balance Sheets.