GAS vs GROUSE

GAS OR GROUSE ?

ABOUT QUESTAR

Finding, producing and delivering

clean, abundant and affordable

American natural gas.

COMPANY PROFILE Questar Corporation is a natural gas-

focused energy company with five major lines of business, they are :

1.Gas exploration and production2.Midstream field services3.Energy marketing4.Interstate gas transportation5.Retail gas distribution Questar Corporation conducted through its

three principal subsidiaries: Questar Market Resources, Questar Pipeline and Questar Gas.

HISTORY Questar Corporation's origins date to the

1922 discovery of natural gas in southwestern Wyoming by a predecessor exploration and production company.

The company completed construction of a pipeline in 1929 to transport natural gas to Utah markets. In 1935, various holdings were consolidated under the name Mountain Fuel Supply Company, which the parent company used until reorganizing in 1984 as Questar Corporation.

Today, Questar is a natural gas-focused energy company with five principal

QUESTAR’S BUSINESSES Gas and Oil Exploration & Production

Questar Exploration & Production acquires, explores for, develops and produces natural gas, oil and natural gas liquids in the Rocky Mountains and Midcontinent.

Wexpro manages, develops and produces cost-of-service reserves for gas-utility affiliate Questar Gas.

Midstream Field ServicesQuestar Gas Management provides midstream field services including natural gas-gathering and processing services for affiliates and third parties.

Gas & Oil Marketing and TradingQuestar Energy Trading markets equity and third-party natural gas and oil, provides risk-management services, and owns and operates an underground gas-storage reservoir.

CONT. QUESTAR’S BUSINESSES Interstate Gas Transportation & Storage

Questar Pipeline transports and stores natural gas. Questar's pipelines interconnect with major pipelines in Utah, Wyoming, Colorado, New Mexico, Arizona and California. Questar Pipeline's system is strategically located to serve major gas-producing basins in Utah, Wyoming, western Colorado and New Mexico. Questar Pipeline owns and operates the Clay Basin storage facility, the largest underground-storage reservoir in the Rocky Mountain region.

Retail Gas Distribution Questar Gas provides retail natural gas-distribution service to nearly 900,000 customers in Utah, southwestern Wyoming and southeastern Idaho. Questar Gas is regulated by public service commissions in Utah and Wyoming.

PINEDALE MESA’S NATURAL GASPinedale Mesa in Southern Wyoming has rich natural gas deposits trapped in sandstone In the 1990s industry developed techniques to get at such deposits by fracturing the sandstone to free the gas Questar drilled a successful test well there in 1998 After an environmental impact statement was completed, the Bureau of Land Management (BLM) approved drilling of up to 900 wells on federal lands on Pinedale Mesa.

PINEDALE MESA’S NATURAL GASAdvantages

Natural gas is cleaner source energy than fossil fuels

Helps US to reduce dependence on foreign energy source

Develop business and offer new job opportunity as well as tax revenue

60% of the state of Wyoming benefits revenues come from royalties received from coal, gas, and oil operations

WILDLIFE IN PINEDALE MESA

DRILLING IMPACT TO WILDLIFEGROUSE (top priority species)a.Declining amount of sagebrushb.Noise disturb breeding process

PRONGHORN ANTILOPE, MULE DEER, etc

a.Winter range in the middle of drilling sites

b.The mesa is main route of their migration

MIGRATION ROUTE VS

DRILLING SITE

GROUSE GROWTH WITH DECLINE

1. 200 years ago; 2 millions across United State

2. 1970’s; 400,000 left

3. June 2004; 140,000 until 250,000

4. If not protected, will be extinct in 2050

“May 2004 the US Fish and Wildlife Service begin

process of studying whether sage grouse should

be categorized as endangered species”

SAGEBRUSH

ROLE OF BLM

a. BLM required specific range between breeding / nesting ground and drilling structures

b. BLM restrict winter drilling

c. Year 2001 – 2003 BLM allow Questar

to drill during winter with new technology

CASE ANALYSISSystematic ProblemsDilemma between ENERGY SOURCE for U.S. consumption and revenue versus ENVIRONMENT responsibility.

Corporate IssuesFacing environment issues especially concern with winter restriction, Questar have to develop investment for new technology and strategy which it will cause longer payback period.

CONT. CASE ANALYSISHow Wildlife should be valued?Maintain their natural habitat. It will

protect the exist population, prevent from extinction,

facilitate them to breed.

This value can be balanced against economic interests if Questar have high awareness for environment restriction and obey it rules.

CONT. CASE ANALYSISConcerning with environment impact,

morally Questar must obey BLM restrictions for

their drilling operations in Pinedale Mesa.

On the other hand, to fulfill energy necessity

of U.S, Questar should not cease drilling

operations.

CONT. CASE ANALYSISIn develop drilling pad, Questar should have high consideration for necessity of winter for wildlife, winter range route, and sagebrush distribution map.

For sustainability, environment groups

behaved ethically because their main purpose

is to prevent wildlife population.

SUSTAINABILITY OF HABITAT LANDSCAPE WILL SUPPORT

EXISTENCE OF WILDLIFE