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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 :
2. Gas exploration and production
3. Midstream field services
4. Energy marketing
5. Interstate gas transportation
6. 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 Services
Questar Gas Management provides midstream field
services including natural gas-gathering and processing
services for affiliates and third parties.
 Gas & Oil Marketing and Trading
Questar 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 GAS
Pinedale 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 GAS
Advantages

 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 WILDLIFE
GROUSE (top priority species)
b. Declining amount of sagebrush

c. Noise disturb breeding process

PRONGHORN ANTILOPE, MULE DEER,


etc
f. Winter range in the middle of drilling
sites
g. 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 ANALYSIS
Systematic Problems
Dilemma between ENERGY SOURCE for U.S.
consumption and revenue versus ENVIRONMENT
responsibility.

Corporate Issues
Facing environment issues especially concern
with
winter restriction, Questar have to
develop
investment for new technology and strategy
which
CONT. CASE
ANALYSIS
How 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
CONT. CASE
ANALYSIS
Concerning 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
ANALYSIS
In 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
SUSTAINABILITY OF HABITAT
LANDSCAPE WILL SUPPORT
EXISTENCE OF WILDLIFE