Dominion Energy Questar Pipeline, LLC...Pipeline Maintenance 21 March 1, 2019 22 March 1, 2019 2019...

Dominion Energy Questar Pipeline, LLC

2019 Customer Meeting

March 1, 2019 2

Shelley W. Kendrick Director, Marketing & Business Development

Dominion Energy Questar Pipeline

• Safety and Environmental Discussion

• Attendee Introductions

• 2018 Highlights

• Mastio Survey Results

• 2019 Goals

• Customer Meeting Agenda

Welcome to Deer Valley! Agenda

March 1, 2019 3

March 1, 2019 4

• Sustainable slopes participant • Deer Valley is one of more than 190 resorts to endorse the National Ski Area

Association's (NSAA) Sustainable Slopes Environmental Charter for ski areas.

• Forest management plan • Program to enhance tree health – reseeding trees and grass, cutting deadfall,

eliminating weeds

• Reduce • Source reduction conserves resources and reduces pollution & greenhouse

gases that contribute to climate change.

• Reuse • Reusing items decreases waste dramatically. Ultimately, fewer materials will be

manufactured, recycled or sent to landfills.

• Recycle • Recycling decreases emissions of greenhouse gases, conserves natural

resources and helps sustain the environment for future generations.

• Rethink • We have changed the way we approach operations to more positively

affect our environment.

Deer Valley’s Environmental Commitment

March 1, 2019 5

"All ski resorts, whether on public or private land, are charged with being stewards of the land. It's a responsibility that should not be taken lightly and we at Deer Valley certainly do not," says Bob Wheaton, resort president and general manager.

Attendee Introductions

March 1, 2019 6

• Rockies market experienced dramatic changes

• Westcoast outage

• Low storage levels

• Cold weather / 2018 polar vortex

• Supply availability

• DEQP (consolidated) – 12/31/18 record level contracted capacity - 5.5 MMDth/d

• DEQP and DEOP Tariffs modernized: “Sale of Firm Capacity” more market responsive –

first come, first served

• Clay Basin Delivery Project – 1.1 Bcf of firm capacity sold

• White River Hub – 15% rate reduction – 501(G) settlement

• DE Overthrust Pipeline – 25% rate reduction – Section 5 settlement

• Representatives are available on ICE Chat

2018 Highlights

March 1, 2019 7

• Thank you!

• Ranked #4 of all pipelines surveyed (#6 last year)

• Ranked #2 for regional pipelines (#4 last year)

• Received excellent customer feedback

• Final study to be presented by Mastio later in March

• Results will be reviewed and a plan to act will be developed

• Specific improvements to be identified and implemented by year end

2018/19 Mastio Survey

March 1, 2019 8

• Additional tariff improvements/modernization • WRH – Sale of Capacity to mirror DEQP and DEOP

• No Notice Transportation tariff to be updated

• Review of all tariffs for additional improvements

• Customer Service Improvements • Reduction in approval times for PAL deals

• Increased online reporting of Capacity Release reporting

• Additional training and improved electronic access

• Quorum web product rollout – later this year

• Pipeline Expansion opportunities • DEQP

• DEOP

2019 Goals

March 1, 2019 9

Meeting Agenda

March 1, 2019 10

March 1, 2019 11

Ron Jorgensen Vice President – Western Pipeline Operations


March 1, 2019 12

Safety

Ethics

Excellence

Embrace Change

One Dominion Energy

Our Values

Dominion Energy – National Footprint

13

Legend

Electric utility service territory

Gas utility service territory

Utility electric generation

Merchant electric generation

Natural gas pipeline

Atlantic Coast Pipeline

Cove Point

Market cap1 ($B)

U.S. utility customers2 (M)

¹ As of January 7, 2019 2 As of December 31, 2017: SRE adjusted for Oncor acquisition, SO adjusted for Gulf Power divestiture, and D adjusted for SCG merger

~ 7.5 million customers across 18 states

March 1, 2019 14

Dominion Energy Highlights Safety performance set new company record for 2nd straight year

In-service of Cove Point LNG export facility ($4.1 billion investment)

Successful completion of SCANA merger

Commenced construction on Atlantic Coast Pipeline

Completed buy-in of Dominion Energy Midstream Partners

Significant progress on adding new renewables, reducing carbon-intensity of electricity, and reducing methane emissions

Met our goal of reducing CO2 intensity by 50% since 2000

See: https://www.dominionenergy.com/esg

Voluntary Leak Detection and Repair Reduce emissions from tanks Pressure reduction prior to blowdown Reduce emissions from pigging Expand compressor rod-packing

replacement Install Engine Blowdown Recovery systems

where feasible Replace gas starters with air or electric

starters

Share best practices for Gas Loss reporting across gas businesses, including shared data & reporting

March 1, 2019 15

Reduction Initiatives Data Improvement Research

Commitments

Goal: 50% by 2025

Identified potential opportunities that require technological advancements, research, and/or pilot programs prior to implementing

New & existing technologies being implemented (e.g. deploying ZEVAC units across distribution, storage & transmission)

EPA Natural Gas STAR and Methane Challenge programs

ONE Future Coalition 50% reduction in methane emissions by

2030 – see 2/12/19 Dominion Energy News Release

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20

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20

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lati

ve R

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uct

ion

(B

CF)

16.3 saved by 2040

3.5 saved by 2025

Benefits to Customers

Help minimize Lost & Unaccounted (L&U) for system gas

L&U passed through to shippers via fuel trackers

Increased public confidence in benefits of natural gas as a cleaner fuel

Initiatives on Methane Reduction

Recent Accomplishments

March 1, 2019 16


Safety

• Record-setting safety year across all Dominion Energy business units

(2018 OSHA recordable rate of 0.54 for DE Gas Transmission)

• Over 1 million miles driven by DEQP without a preventable motor vehicle accident

• Completed 330 miles of ILI, 8 storage well workovers, 16” HDD in 2018

Ethics

• 2018 Environmental Excellence Award from Utah Board of Oil, Gas & Mining

• Roll-out of Enhanced Environmental EMS in Gas Infrastructure Group

• ~100% of colleagues participated in 2018 Diversity & Inclusion training

Excellence

• Strong customer service – 2019 Mastio Quality Award (Regional Pipelines)

• Completed Clay Basin Delivery Project in 2018 – 1.1 Bcf FSS

• Record levels of contracted demand for transportation & storage

We do not want Dominion Energy to be the biggest energy company, just the best.

2018 Summary Annual Report

Recent Accomplishments

March 1, 2019 17


Embrace

Change

• Received FERC approval for DEOP tariff modernization in January

• Committed to aggressive new methane reduction goals (e.g. EPA Natural Gas Star

& Methane Challenge, GIG Social Contract)

• 2 finalists for DE Chairman’s Excellence Awards - 6 DEQP entries

Teamwork One Dominion Energy

• Community-oriented: $35 M in charitable giving in 2018 (~$3 million at DE West)

and more than 125,000 volunteer hours

• New DE strategic vision focused on sustainability, customer solutions, innovation

• Successful resolution of rate proceedings (reductions) on WRH and Overthrust

We look at “sustainability” as more than environmental and social issues. A sustainable company is one that lasts and can adapt to many challenges.


We recognize the urgent need to reduce GHG emissions. And because different results require different ways of doing things, sustainability and innovation must go hand-in-hand. We are using a mix of new technologies and

existing ones to reduce methane emissions from our gas infrastructure 50 percent by 2030.

2019 Priorities

March 1, 2019 18


Safety

• Employee and contractor safety excellence - goal of zero accidents

• Robust set of pipeline and storage integrity management activities

• Mainline 68 replacement in Rifle – Phase III (2.44 miles)

Ethics • Excellent environmental stewardship and regulatory compliance

Excellence • Enhanced customer service – improvements based on feedback

• High operational reliability – no firm service interruptions

Embrace

Change

• New sustainability / methane reduction initiatives (e.g. voluntary LDAR at stations

& storage; line work blowdown avoidance, etc.)

Teamwork One Dominion Energy

• Strengthen relationship and dialogue with customers & stakeholders

• Ideas for new or enhanced services


Questions?

March 1, 2019 19

March 1, 2019 20

Lori W. Creer Director, Engineering and Gas Control


• 2019 Maintenance Schedule

• Commitment to Pipeline and Storage Integrity

• Commitment to Safety and Reliability

Pipeline Maintenance

March 1, 2019 21

March 1, 2019 22

2019 Maintenance Schedule - Possible Shipper Impact

Month Category Preliminary Dates Location Project Possible Customer Impact Duration

April Reservoir Test April 2-10 Clay Basin Annual withdrawal test

March 13, OFO letters to shippers

March 30-April 1, No Injection nominations

April 2, constant 275 MMcf/d withdraw rate

April 3, constant 325 MMcf/d withdraw rate

April 4-10, reservoir shut-in

9 days

May

Maintenance May 7 Vermillion Plant

Receipt Meter Cleaning No flow 12 hours

Maintenance May 7-10 DEOP to REX Meter Cleaning No Flow 4 days

Compliance May 7-9

Thistle

Compressor

Station

Annual maintenance and

DOT compliance No Impact Expected 3 days

July Compliance &

Maintenance July 9-11 Oak Spring

Annual maintenance and

DOT compliance

July 9-10 no shipper impact

July 11 Goshen Scheduling Point reduced

from 402 Mdth/d to 300 Mdth/d

1 day

August System Integrity August 5-9 ML 23/26/27 Inline Inspection Receipts Points east of JL 65 no flow 5 days

September System Integrity September 4-5 ML 68 Pipeline replacement No flow out of Rifle area

(Bull Mtn and Philpot Tap) 2 days

October Reservoir Test October 8-16 Clay Basin Annual injection test

Sept 23rd OFO letters to shippers

Oct 5-7, No withdrawal nominations

Oct 8, constant 210 MMcf/d injection rate

Oct 9, constant 260 MMcf/d injection rate

Oct 10-16 reservoir shut-in

9 days

DEQP and DEOP

2019 planned In Line Inspection – roughly 349 miles

Pipeline Integrity Management

March 1, 2019 23

ML48 Yellow Creek to 48/60

Junction 38.5 miles, 20”,

Caliper/MFL

ML2, 14 Cash to Little Mountain

ML2, 26.2 miles, 24” ML14, 26.2 miles, 20”

Caliper/MFL

ML104 Thistle to Elberta 37.9 miles, 24”,

Caliper/MFL

ML116 Labarge to Whitney

70 miles, 36” Caliper/MFL

ML1, 13 Nightingale to Eakin

ML1, 50.9 miles, 18x20” ML13, 50.9 miles, 18x20”

Caliper/MFL ML27

Sand Hills to N. Craig 25.1 miles, 8”

Caliper, MFL (Flare)

Note: 2018 completed In Line Inspection – 331 miles

ML23/26/27 23-65 Junction to Sand Hills

23.4 miles, 10”, Caliper, MFL

• Storage Well Workovers - Baseline Assessments • 2018 – 8 Wells

• 2019 – 10 Wells Planned

• 2023 – All Baseline Assessments Complete

(PHMSA required by 2025)

Storage Integrity Management

March 1, 2019 24

2018 Recipient Utah Board of Oil, Gas and Mining Environmental Excellence Award

2018 Main Line 3 Replacement Horizontal Directional Drill (HDD)

• HDD performed to route the pipeline line under an active landslide plane

• ~2,700 foot bore

• ~140 maximum depth

• Increases service reliability and community safety and reduces potential environmental impact

• Successful completion without any drilling fluid releases to the nearby Weber River and wetlands

Pipeline Safety and Reliability

March 1, 2019 25

• Phase I & II (2016 & 2017)

• Highest population and structural densities

Class III and High Consequence Areas (HCAs)

ML 68 Replacement Phase III

Pipeline Safety and Reliability

March 1, 2019 26

• 2019 Phase III Replacement • Completes Class III & HCA in Rifle

• Proactive multi-phase replacement - Rifle, CO

Questions?

March 1, 2019 27

28

Joseph Hulse Manager - Marketing


• Dominion Energy Quiz

• Customer Experience Improvements

• Virtual MAP’s

• Tariff Procedures

• Opportunities

Agenda

March 1, 2019 29

1. Dominion Energy GIG will reduce methane emissions by how much by 2030?

2. Dominion Energy formed a joint venture to make RNG out of what?

3. Dominion Energy is building virtual pipelines via what?

4. What day do STU amendments occur for DEQP?

5. How many firm transportation rate schedules on DEOP?

Dominion Energy Quiz

March 1, 2019 30

Customer Experience Improvements

March 1, 2019 31

DEQP is dedicated to providing the highest quality of support & service to its customers

Creativity & Innovation: • Cost Estimate Request Form

• Interruptible Discounts (DEQP, DEOP, WRH)

• More Information Online • Clay Basin Calculator (Downloadable Excel File) • Stipulation Gas Sales • Updated Unsold Maps

• Streamlined Notices (Stipulation Gas Sales, Maintenance Calendar)

• Credit Process, Maps, etc.

Virtual MAP Points

March 1, 2019 32

DEQP & DEOP

15 R&D nominations Facilitated via DEQP

contracts on DEOP & WRH

Constrained by the contracted volume on

DEQP contract

If Virtual MAP’s are being constrained, might require

two nominations

O

P

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WA

MS

UT

TE

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G

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H

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GREEN RIVER BASIN

DE

Overthrus

t Pipeline

DE

Questar

Pipeline Natural

Gas Hub Clay

Basin

Storage

408 - QPC to REX

432- Wamsutter (REC) to QPC

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7 – W

IC W

amsu

tter to

QP

C

388 – Roberson thru Kanda 424- Ruby from QPC

433 – WIC RS to QPC

445 – Wamsutter M&R from DEQP 428, 429, 430- Opal to WTNY or Eakin

390 – KRGT Painter from QPC 868 – XO 16 – NWP Delivery

425 – Ryckman Inj. Via OTPL

389 – Hams Fork from QPC

Tariff Procedures

March 1, 2019 33

DEQP & DEOP

Highlights: • All posted capacity is first-come, first-served

• Unless an auction notice is posted

• Auction Procedures Updated: • Parties can update bid until deadline • Compete round: Triggers for parties tied for the highest economic value, ½ hour for DEQP, Best bid for DEOP

• Ability to enter into prearranged deals • Short Term Amendments • Unsold Capacity Requests

• Defined date for Short Term Amendments • 4th to last business day of each month

• 90 Day Rule: Applies if contract term is less than one year in length

March 1, 2019 34

Opportunities

Transportation, Storage, Gas Sales, etc:

• LTU / Re-Contracting Capacity – DEQP & DEOP

• Clay Basin – ISS, PAL1

• Stipulation Gas Sales • Procedures posted online

• Executed NAESB

• Creative Deal Structures

S:\Engineering - QPC\SystemEngineering\Unsold_Long Term... Updated: 2/28/2019 10:45:37 AM

Dominion Energy Questar Pipeline, LLC Map of Long Term Unsold Firm Capacity April 2019

KANDA/COLEMAN SUMMARY Nitchie Gulch to WIC, CIG & DEOP West of Nightingale to WIC, CIG & DEOP East of Nightingale to WIC, CIG & DEOP

25,290 90,920

34,820

LEGEND

Volume in Dth/d (Front-haul)

Meter Station

Compressor Station

Storage Facilities S

M

C 70,960

Little Mountain

XO16 ( )

39,570 Altamont

51,140

White River Hub

M Fidlar

Oak Spring

Dragon Trail

Thistle

Blind Canyon

C

C

M M M

C

C

M

Dripping Rock

19,110

Atmos Energy

0

Myton

M M

96,300

M

M

M

S

Clay Basin

20,970

26,290 4,800

150,000

12,930

1,930 59,960

S

S

S

M

M

M

M

M

C

C C

Wamsutter

Southern Star

Hyrum Gate

Sunset Gate

Porters Lane

Goshen

Payson Gate

Nephi City

Coalville

Chalk Creek

Whitney Canyon

Opal

Roberson

Leroy

M

Bluebell

M

Volume in Dth/d (Back-haul) 00


Dominion Energy Overthrust Pipeline

00

M C

DEQP - Opportunities

S:\Engineering - QPC\SystemEngineering\Unsold_Long Term... Updated: 2/28/2019 10:45:37 AM

Dominion Energy Questar Pipeline, LLC Map of Long Term Unsold Firm Capacity April 2019

KANDA/COLEMAN SUMMARY Nitchie Gulch to WIC, CIG & DEOP West of Nightingale to WIC, CIG & DEOP East of Nightingale to WIC, CIG & DEOP

25,290 90,920

34,820

LEGEND


Meter Station

Compressor Station


M

C 70,960

Little Mountain

XO16 ( )

39,570 Altamont

51,140

White River Hub

M Fidlar

Oak Spring

Dragon Trail

Thistle

Blind Canyon

C

C

M M M

C

C

M

Dripping Rock

19,110

Atmos Energy

0

Myton

M M

96,300

M

M

M

S

Clay Basin

20,970

26,290 4,800

150,000

12,930

1,930 59,960

S

S

S

M

M

M

M

M

C

C C

Wamsutter

Southern Star

Hyrum Gate

Sunset Gate

Porters Lane

Goshen

Payson Gate

Nephi City

Coalville

Chalk Creek

Whitney Canyon

Opal

Roberson

Leroy

M

Bluebell

M




00

M C

DEQP – Re-Contracting Opportunities

8,000

3,300

11,100

Hams Fork

S:\Engineering - QPC\SystemEngineering\Unsold_Long Term..... Updated: 2/28/2019 10:47:08 AM

Dominion Energy Overthrust Pipeline, LLC Map of Long Term Unsold Firm Capacity April 2019

50,000 79,960

26,390

100,000

287,000 115,000

100,000

300,000 52,880

38,900

50,000 65,460

C

C C

C

M

M

M

M

M

M

M

LEGEND


Meter Station

Compressor Station


M

C

00




S

M

S

REX

Point of Rocks

XO-16

Clay Basin

Eakin

M M

Clear Creek S

Ryckman Creek Painter Whitney Canyon

Naughton

Roberson

Ruby

DEQP

WIC

Rock Springs

M

Clear Creek

M

Opal

M

WIC

Wamsutter

DEOP - Opportunities

Hams Fork

S:\Engineering - QPC\SystemEngineering\Unsold_Long Term..... Updated: 2/28/2019 10:47:08 AM

Dominion Energy Overthrust Pipeline, LLC Map of Long Term Unsold Firm Capacity April 2019

50,000 79,960

26,390

100,000

287,000 115,000

100,000

300,000 52,880

38,900

50,000 65,460

C

C C

C

M

M

M

M

M

M

M

LEGEND


Meter Station

Compressor Station


M

C

00




S

M

S

REX

Point of Rocks

XO-16

Clay Basin

Eakin

M M

Clear Creek S

Ryckman Creek Painter Whitney Canyon

Naughton

Roberson

Ruby

DEQP

WIC

Rock Springs

M

Clear Creek

M

Opal

M

WIC

Wamsutter

DEOP – Re-Contracting Opportunities

125,000

39

Proposed Pipeline

DE Questar Pipeline DE Overthrust Pipeline

WHITE RIVER HUB • DE Questar Pipeline • Rockies Express • Northwest • TransColorado • WIC • CIG

GOSHEN • DE Questar Pipeline • Kern River

WAMSUTTER • DE Questar Pipeline • Rockies Express

• WIC • CIG

OPAL • DE Questar Pipeline • DE Overthrust • Kern River

• Ruby • CIG • Northwest

CLAY BASIN

Cryogenic Processing

Natural Gas Market Hub Natural Gas Storage

Kern River Pipeline

DE Questar Pipeline

DE Overthrust Pipeline

Kern River Pipeline

Specifications Description

Natural Gas Storage

(BCF)

• 54 Bcf working gas • 66.21 Bcf cushion gas

Interconnect Capacity

(Dth/d)

• DE Questar Pipeline • Injection: 217,000 • Withdrawal: 700,000

• Northwest Pipeline • Injection: 250,000 • Withdrawal: 320,000

* Numbers listed are meter sizing, and actual volumes depend on pipeline conditions

Location

• Daggett County, Utah • NE corner of Utah near Wyoming &

Colorado borders • 50 miles from Rock Springs, WY

Clay Basin Storage Largest Natural Gas Storage Facility in the Rocky Mountains

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March 1, 2019 40

Clay Basin Inventory As of February 28, 2019 Working Gas Inventory is 10.36 MMDTH

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60

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

Min/Max Range 18-19

MM dths

Summary

March 1, 2019 41

• DEQP is focused on continuous

improvement to provide better customer

service and product offerings

• Customer opportunities include: – Pipeline transportation capacity

– Storage capacity

– PAL1

– Stipulation Gas Sales

Questions?

March 1, 2019 42

Joseph Hulse Manager - Marketing

Dominion Energy Questar Pipeline, LLC 801-324-5138

[email protected]

March 1, 2019 43

John Kinder Manager, Gas Business Development


• Clay Basin Delivery Project

• Firm capacity delivers value

• Overthrust Pipeline Capacity Potential

• Unlocking the Uintah

• Summary: What’s Next?

Agenda

March 1, 2019 44

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Proposed Pipeline

DE Questar Pipeline DE Overthrust Pipeline

WHITE RIVER HUB • DE Questar Pipeline • Rockies Express • Northwest • TransColorado • WIC • CIG GOSHEN

• DE Questar Pipeline

• Kern River

WAMSUTTER • Questar Pipeline • Rockies Express

• WIC • CIG

OPAL • DE Questar Pipeline • DE Overthrust • Kern River

• Ruby • CIG • Northwest

CLAY BASIN

Cryogenic Processing

Natural Gas Market Hub Natural Gas Storage

Kern River Pipeline

DE Questar Pipeline

DE Overthrust Pipeline

Kern River Pipeline

Project Overview

• Converted 1,171,500 Dth of existing interruptible

storage to Firm Storage Service with associated

MRD

• Upgraded two wells to fully functional

injection/withdrawal capability

• Installed new dehydration unit and surface facilities

• Project Completed

• Injections began in April 2018

• Workovers finished, facilities installed

• Withdrawals began in December 2018

Clay Basin Delivery Project

March 1, 2019

It’s a good time to own capacity

March 1, 2019 46

• Storage holders found extrinsic opportunities in 2018

• Transportation contracts delivered value

• Unsubscribed capacity is getting harder to find

Overthrust Pipeline West Delivery Expansions Phase 1: New Transportation from Wamsutter to Hams Fork

47

Available Path (Receipt Delivery) Capacity (Dth/d) Action Required

Late 2019 Wamsutter KRGT Hams Fork 65,460 Upgrade KRGT Hams Fork and Wamsutter meter stations

WHITNEY CANYON

WAMSUTTER

OPAL POINT OF ROCKS

ROCK SPRINGS

ROBERSON

Upgrade Measurement at Hams Fork

Upgrade Measurement at Wamsutter

PAINTER

Dominion Energy Overthrust Pipeline Dominion Energy Questar Pipeline

Compression Facility

• New transportation capacity from Wamsutter to Kern River

• Could be in service by the end of 2019

• New lower system rates

• Last option for low-cost expansion

• Let’s talk….

Overthrust Pipeline Wamsutter West Open Season?

March 1, 2019 48

Overthrust Pipeline West Delivery Expansions Phase 2: Additional Capacity Options

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Available Path (Receipt Delivery) Capacity (Dth/d) Action Required

2020 KRGT Hams Fork Wamsutter

KRGT Painter Ruby Topaz

+124,540 Various DEOP piping modifications to allow full utilization of new Wamsutter meter capacity

WHITNEY CANYON

WAMSUTTER

OPAL POINT OF ROCKS

Upgrade Measurement, Yard Modifications

ROCK SPRINGS

ROBERSON

Isolate two pipelines to operate closer to individual MAOPs

Upgrade Measurement at Hams Fork

Upgrade Measurement at Wamsutter

PAINTER

Dominion Energy Overthrust Pipeline Dominion Energy Questar Pipeline

Compression Facility

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Price

Altamont

Bluebell

Unlocking the Uintah Additional Takeaway Capacity at Myton

JL 138

Brundage

Myton


Proposed Extension of DEQP’s JL 138

Existing Cryogenic Processing Facilities

Long-Term Capacity Received at Myton

Available Project Description

24,000 dth/d Now 4-mile extension of JL 138 and yard-piping modifications to optimize wet/dry systems; also increases local availability

of dry gas +61,000 dth/d 2021-2022

ML 40

ML 104

Summary

March 1, 2019 51

This is a good time to hold firm capacity

Overthrust is your link to the west

Unlocking the Uintah potential in 2019

Questions?

March 1, 2019 52

Dominion Energy Questar Pipeline, LLC...Pipeline Maintenance 21 March 1, 2019 22 March 1, 2019 2019...

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