Alliance Pipeline Inc. and Questar Overthrust Pipeline Company have entered into a Memorandum of Understanding (MOU) to develop the Rockies Alliance Pipeline (RAP), a jointly owned interstate natural gas pipeline from Wamsutter, WY to the Emerson trading hub in the Minnesota U.S./Canadian border. The proposed 42-inch pipeline will traverse approximately 800 miles northeasterly through Wyoming, Montana and North Dakota; connecting the fastest-growing natural gas producing region in North America – the Rockies – with robust natural gas markets in the U.S. Midwest and central Canada. As proposed, the RAP will interconnect with downstream pipelines (Alliance Pipeline, Northern Border, Great Lakes Transmission and TransCanada Pipeline) to provide direct access to the Chicago Hub, Michigan and Dawn storage, and upper Midwest and
Northeastern markets.

RAP provides maximum receipt flexibility to access the growing gas supplies in the Rocky Mountain Region originating in the Wamsutter hub (Questar, WIC, CIG and REX) as well as the Powder River Basin area (Dead Horse and Gillette, WY area). RAP also provides multiple delivery options and will offer zonal rates with the various interstate pipelines.

A binding open season commenced on May 1. Alliance and Questar will work with prospective shippers to determine the most efficient size, route and timing of in-service date for the RAP facilities and are flexible in the project design to meet shippers’ needs in the most effective way.

Subject to obtaining shipper commitment for this system and regulatory approvals, the pipeline is expected to be placed into service as early as third quarter 2011.