Related-Party Transaction

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related-Party Transactions

Note 14 - Related-Party Transactions

Questar Gas

In 2012, 2011 and 2010 Questar Gas provided technical and communication services to affiliates. In 2010 Questar Gas also provided administrative, accounting, legal, data-processing and regulatory support to affiliates. Questar Gas provided these services at its cost and charged $13.6 million in 2012, $14.0 million in 2011 and $25.9 million in 2010. 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 916 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 paid for transportation, storage and processing services provided by Questar Pipeline and a subsidiary amounting to $73.6 million in 2012, $73.7 million in 2011 and $73.5 million in 2010, which included demand charges. The costs of these services were included in cost of natural gas sold.

Under the terms of the Wexpro Agreement, Questar Gas receives a portion of Wexpro's income from oil operations after recovery of Wexpro's operating expenses and a return on investment. This amount, which is included in revenues and reduces amounts billed to gas distribution customers, was $2.5 million in 2012, $3.3 million in 2011 and $1.1 million in 2010. The amounts that Questar Gas paid Wexpro for the operation of cost-of-service gas properties were $274.0 million in 2012, $253.4 million in 2011 and $240.0 million in 2010. Questar Gas reports these amounts in cost of natural gas sold.

Questar Gas had a lease with an affiliate for space in an office building located in Salt Lake City, Utah, which expired on April 30, 2012. Rent expense was $0.4 million in 2012, $1.1 million in 2011 and $2.5 million in 2010.

Questar charged Questar Gas for certain administrative functions amounting to $42.1 million in 2012, $46.9 million in 2011 and $13.2 million in 2010. These costs are included in operating expenses and 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.

Questar Gas borrowed cash from Questar and incurred interest expense of $0.6 million in 2012, $0.3 million in 2011 and $0.4 million in 2010.

Questar Pipeline

Questar Pipeline receives a substantial portion of its revenues from Questar Gas. Revenues received from Questar Gas were $74.0 million in 2012, $74.1 million in 2011 and $73.9 million in 2010.

In 2012, 2011 and 2010 Questar Gas provided technical and communication services to Questar Pipeline. In 2010 Questar Gas also provided administrative, accounting, legal, data-processing and regulatory support to Questar Pipeline. Questar Gas provided these services at its cost of $8.8 million in 2012, $9.6 million in 2011 and $20.2 million in 2010. The majority of these costs are allocated and included in operating expenses. The allocation methods are based on the specific nature of the charges. Management believes that the allocation methods are reasonable.

Questar charged Questar Pipeline for certain administrative functions amounting to $22.0 million in 2012, $22.2 million in 2011 and $7.0 million in 2010. These costs are included in operating expenses and are generally allocated based on each affiliate's proportional share of revenues less product costs; property, plant and equipment; and labor costs. Management believes that the allocation method is reasonable.

Questar Pipeline had a lease with an affiliate for space in an office building located in Salt Lake City, Utah, which expired on April 30, 2012. Rent expense was $0.3 million in 2012, $0.9 million in 2011 and $0.8 million in 2010.

Questar Pipeline loaned excess funds to Questar and earned interest income of $0.1 million in 2012 and 2011 and $0.3 million in 2010. Questar Pipeline borrowed cash from Questar and incurred interest expense of $0.1 million in 2011.