Questar Company Risk Analysis

INTEROFFICE REPORT

Questar Corporation: Energy Company

October 6, 2004

Prepared for: S.E. Parks, Senior Vice President and Chief Financial Officer

Prepared by: Cathy Caton, Accountant

Three segments of Questar operations cover resources and regulated services. Follows is the risk assessment for Questar: Resources, Lack of internal control in estimating reserve(s) revenue, Financial analysis and the market, New land developments, and the Environment.

Most of the company's operations are located in the Rocky Mountain region of Wyoming, Utah, Colorado, Texas, Oklahoma, and Louisiana (5). Distribution is throughout the United States.

QUESTAR OPERATIONS

A multi-faceted holding company formed through reorganization in 1984 into an energy company to distinguish non-utility services (5). Crude resources from fossil fuels (oil, natural gas) are developed through drilling for interstate transmission, storage and distribution. The resource division involves gas, oil, natural gas for marketing, cost analysis of gas development, risk management, and distribution for the