SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C.  20549

                              FORM 10-K
(Mark One)

   X  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED
      DECEMBER 31, 2000 OR

      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
      _____ TO _____

                     Commission File No. 0-30321

                    QUESTAR MARKET RESOURCES, INC.
        (Exact name of registrant as specified in its charter)

     State of Utah                                          87-0287750
(State or other jurisdiction of                      (I.R.S. Employer
 incorporation or organization)                    Identification No.)

180 East 100 South, P.O. Box 45601, Salt Lake City, Utah    84145-0601
(Address of principal executive offices)                    (Zip code)

Registrant's telephone number, including area code:     (801) 324-2600

     SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
                                 None
     SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
                    Common Stock, $1.00 Par Value
    SECURITIES REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933:
                        7 1/2% Notes Due 2011

     Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.  Yes X     No

     State the aggregate market value of the voting stock held by
nonaffiliates of the registrant as of March 1, 2001.  $0.

     Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of March 1, 2001.
4,309,427 shares of Common Stock, $1.00 par value.  (All shares are
owned by Questar Corporation.)

     Registrant meets the conditions set forth in General
Instruction (I)(1)(a) and (b) of Form 10-K and is therefore filing
this Form 10-K Report with the reduced disclosure format.


                          TABLE OF CONTENTS


Heading                                                           Page

                                PART I

Item 1.  BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . .   1
         General. . . . . . . . . . . . . . . . . . . . . . . . . .   1
         Oil and Gas Exploration and Production - Questar E&P,
          Celsius, and Canor . . . . . . . . . . . . . . . . . .. . . 3
         Development and Production - Wexpro Company. . . . . . . . . 3
         Gathering, Processing and Marketing - Questar Gas Management
          and Questar Energy Trading. .. . . . . . . . . . . . . .. . 4
         Regulation . . . . . . . . . . . . . . . . . . . . . . . . . 6
         Competition and Customers. . . . . . . . . . . . . . . . . . 7
         Relationships with Affiliates. . . . . . . . . . . . . . . . 7
         Employees. . . . . . . . . . . . . . . . . . . . . . . . . . 7


Item 2.  PROPERTIES . . . . . . . . . . . . . . . . . . . . . . . .   7

Item 3.  LEGAL PROCEEDINGS. . . . . . . . . . . . . . . . . . . . .  14

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF
         SECURITY HOLDERS.. . . . . . . . . . . . . . . . . . . . .  15

                               PART II

Item 5.  MARKET FOR REGISTRANT'S COMMON EQUITY
         AND RELATED STOCKHOLDER MATTERS .. . . . . . . . . . . . .  15

Item 6.  (Omitted). . . . . . . . . . . . . . . . . . . . . . . . .  15

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATION. . . .  . . .  16

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
         MARKET RISK. . . . . . . . . . . . . . . . . . . . . . . .  20

Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY
         DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Item 9. CHANGES IN AND DISAGREEMENTS WITH
        ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE. . . . . . . . . . . . . . . . . . . .  22


                               PART III

Items
10-13.  (Omitted). . . . . . . . . . . . . . . . . . . . . . . . .   22

                               PART IV

Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES,
         AND REPORTS ON FORM 8-K . . . . . . . . . . . . . . . . .  22

GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52

                              FORM 10-K
                         ANNUAL REPORT, 2000


                                PART I

ITEM 1.  BUSINESS.

General

      Questar Market Resources, Inc. (the "Company or QMR;" this
reference shall include the Company's wholly-owned subsidiaries) is
a wholly-owned subsidiary of Questar Corporation ("Questar"), which
is a publicly traded and diversified energy services company.
Questar has two principal business units--Regulated Services and
Market Resources.  QMR and its subsidiaries comprise  the Market
Resources unit of Questar and engage in oil and gas exploration,
development and production; gas gathering and processing; wholesale
gas, electricity and hydrocarbon liquids trading.  In conjunction
with its production activities, QMR also acquires producing oil and
gas properties.

      As noted in the following chart, QMR itself is a subholding
company that conducts its activities through Questar Exploration and
Production Company ("Questar E&P") and its Canadian subsidiaries,
Celsius Energy Resources, Ltd. ("Celsius") and Canor Energy Ltd.
("Canor"); Wexpro Company ("Wexpro"); Questar Gas Management Company
("Questar Gas Management") and Questar Energy Trading Company
("Questar Energy Trading").


      Questar Corporation

      Questar InfoComm , Inc. (Information Services)

      QUESTAR MARKET RESOURCES, INC. (Subholding Company)
       Wexpro Company (Manages and Develops Cost-of-Service
          Properties for Questar Gas)
            Questar Exploration and Production Company (Exploration
            and     Production)
       Celsius Energy Resources Ltd. and Canor Energy Ltd.
          (Exploration & Production  - Canada)
       Questar Energy Trading Company (Wholesale Energy Marketing
           and Storage)
       Questar Gas Management Company (Gathering and Processing)

      Questar Regulated Services Company (Subholding Company)
       Questar Gas Company (Retail Distribution)
       Questar Pipeline Company (Transportation and Storage)


      QMR is the primary growth area within Questar's business
strategy.  Questar expects to spend 60-70 percent of its capital
budget funds over the next five years on non-regulated activities,
primarily within QMR, to expand reserves through drilling and
acquisitions and to enlarge its infrastructure of gathering systems,
processing plants, header facilities, and non-regulated storage
facilities.  Management of QMR believes that the diversity of the
activities pursued by QMR enhances its basic strategy to pursue
complementary growth.  As the exploration and production companies
find or acquire new reserves, Questar Gas Management should have
more opportunities to expand gathering and processing activities,
and Questar Energy Trading should have more physical production to
support its marketing programs.

      Business Strategy. QMR has the following strategies in its
business:

       -  achieve a prudent, disciplined program to grow reserves;
       -  provide stakeholder value performance in both the short
          and long term;

       -  employ hedging and other risk management tools to manage
          cyclicality;
       -  maintain a strong balance sheet that permits prudent
          growth opportunities;
       -  maintain a portfolio of quality drilling prospects;
       -  identify and divest non-core and marginal assets and
          activities;
       -  proactively avoid litigation risks; and
       -  employ technology and proven innovations to reduce costs.

QMR's activities are described below:

Oil and Gas Exploration and Production - Questar E&P, Celsius, and
Canor:

      Questar's E&P group consists of Questar E&P and its Canadian
subsidiaries Celsius and Canor.  These entities form a unique E&P
group that conducts a blended program of low-cost development
drilling, low-risk reserve acquisition, and high-quality
exploration.

      The E&P group also maintains a geographical balance and
diversity, while concentrating its activities in core areas where it
has accumulated geological knowledge and has significant expertise.
Core areas of activity include the Rocky Mountain region of Wyoming
and Colorado; the Midcontinent region of Oklahoma, the Texas
Panhandle, East Texas, and the Upper Gulf Coast; the Southwest
region of northwestern New Mexico and southwestern Colorado; and the
Western Canadian Sedimentary Basin located primarily in Alberta,
Canada.

      Natural gas remains the primary focus of the Company's E&P
operations.  As of year-end 2000, the Company had proved reserves
(excluding cost-of-service reserves belonging to its affiliate
Questar Gas Company ("Questar Gas")) of 639.9 billion cubic feet
("Bcf") of gas and 15.0 million barrels ("MMBbls") of oil and
natural gas liquids, compared to 514.5 Bcf of gas and 13.9 MMBbls of
oil as of the same date in 1999.  (Any references to oil in this
Report include natural gas liquids.)  On an energy-equivalent basis
ratio of six thousand cubic feet ("Mcf") of natural gas to one
barrel ("Bbl") of crude oil, natural gas comprised approximately
87.6 percent of total regulated proved reserves.  Proved developed
reserves constituted 77.6 percent of the total non-regulated proved
reserves reported.  Approximately 9.4 percent of the group's natural
gas proved reserves and 24.7 percent of its oil proved  reserves are
located in Canada.  See Note 10 of the Notes to Consolidated
Financial Statements under Item 14 of this Report for additional
information concerning QMR's reserves.  See "Glossary of Commonly
Used Oil and Gas Terms" on page __ of this Report.

Development and Production - Wexpro Company

      QMR conducts development drilling and provides production
services to Questar Gas through Wexpro.  Wexpro was incorporated in
1976 as a subsidiary of Questar Gas.  Questar Gas's efforts to
transfer producing properties and leasehold acreage to Wexpro
resulted in protracted regulatory proceedings and legal
adjudications that ended with a court-approved settlement agreement
that was effective August 1, 1981.  A summary of the Wexpro
settlement agreement is contained in Note 8 of the Notes to
Consolidated Financial Statements under Item No. 14 of this Report.
Ownership of Wexpro was moved from Questar Gas to QMR in 1982.

      Wexpro, unlike  members of the E&P group, does not conduct
exploratory operations and does not acquire leasehold acreage for
exploration activities.  It conducts oil and gas development and


production activities on certain producing properties located in the
Rocky Mountain region under the terms of the settlement agreement.
Wexpro produces gas from specified properties for Questar Gas and is
reimbursed for its costs plus a return on its investment.  In
connection with its operations, Wexpro charges Questar Gas for its
costs plus a specified rate of return, which averaged 19.5 percent
on an after-tax basis in 2000 and is adjusted annually based on a
specified formula, on its net investment in such properties adjusted
for working capital and deferred taxes.  At year-end 2000, Wexpro's
investment (net of deferred income taxes) in cost-of-service
operations was $124.8  million compared to $108.9 million at
year-end 1999.  Under the terms of the settlement agreement, Wexpro
bears all dry hole costs.  The settlement agreement is monitored by
the Utah Division of Public Utilities, the staff of the Public
Service Commission of Wyoming and experts retained by these agencies.

      The gas volumes produced by Wexpro for Questar Gas are
reflected in the latter's rates at cost-of-service prices.
Cost-of-service gas (defined to include the gas attributable to
royalty interest owners) produced by Wexpro satisfied 48 percent of
Questar Gas's system requirements during 2000.  Questar Gas relies
upon Wexpro's drilling program to develop the properties from which
the cost-of-service gas is produced.  During 2000, the average
wellhead cost of Questar Gas's cost-of-service gas was $1.78 per
decatherm ("Dth"), which is lower than Questar Gas's average price
for field-purchased gas.

      Wexpro participates in drilling activities in response to the
demands of other working interest owners, to protect its rights, and
to meet the needs of Questar Gas.  Wexpro, in 2000, produced 45.0
billion cubic feet equivalent ("Bcfe") of natural gas and
hydrocarbon liquids from Questar Gas's cost-of-service properties
and added reserves of 71.3 Bcfe through drilling activities and
reserve estimate revisions.  (These numbers do not include the
related royalty gas.)

      Wexpro, under the terms of the Wexpro agreement, owns
oil-producing properties.  The revenues from the sale of crude oil
produced from such properties are used to recover operating expenses
and provide Wexpro with a return on its investment.  In addition,
Wexpro receives 46 percent of any residual income.  (The remaining
income is received by Questar Gas and is used to reduce natural gas
costs reflected in customer rates.)

      Wexpro has an ownership interest in the wells and facilities
related to its oil properties and in the wells and facilities that
have been installed to develop and produce gas properties described
above since August 1, 1981 (a date specified by the settlement
agreement referred to above).  Wexpro maintains an office in Rock
Springs, Wyoming, in addition to its principal office in Salt Lake
City, Utah.

Gathering, Processing and Marketing - Questar Gas Management and
Questar Energy Trading:

      Questar Gas Management conducts gathering and processing
activities in the Rocky Mountain and Midcontinent areas.  Its
activities are not subject to regulation by the Federal Energy
Regulatory Commission (the "FERC") because the Natural Gas Act of
1938 specifically provides that the FERC's jurisdiction does not
extend to facilities involved in the production or gathering of
natural gas.  Questar Gas Management's core system and activities,
however, reflect its historical connection to Questar Pipeline's
regulated activities.


      Questar Gas Management was formed in 1993 as a wholly-owned
subsidiary of Questar Pipeline to construct and operate the Blacks
Fork processing plant in southwestern Wyoming.  It expanded in 1996
as a result of receiving Questar Pipeline's gathering assets and
activities.  In mid -1996, Questar Gas Management was moved from
Regulated Services to QMR shortly after the transfer of gathering
assets and acquired the processing plants that formerly belonged to
Questar E&P.

      Questar Gas Management's gathering system was originally built
as part of a regulated enterprise.  It consists of 1,284 miles of
gathering lines, compressor stations, field dehydration plants and
measuring stations and was largely built to gather production from
Questar Gas's cost-of-service properties.  Under a contract that was
assigned when the gathering assets were transferred from Questar
Pipeline, Questar Gas Management is obligated to gather the
cost-of-service production for the life of the properties.  During
2000, Questar Gas Management gathered 36.8 million decatherms
("MMDth") of natural gas for Questar Gas, compared to 32.1 million
in 1999, for which it received $8.5 million, including $4.5 million
in demand charges.

      Questar Gas Management continues to expand the volumes of gas
gathered for affiliates within QMR and for nonaffiliated customers.
During 2000, Questar Gas Management gathered 25.0 MMDth for QMR
affiliates, compared to 19.6 MMDth in 1999, and gathered 93.0 MMDth
for nonaffiliated customers, compared to 85.0 MMDth in 1999.
Questar Gas Management is interested in acquiring the existing
gathering system for the Pinedale wells and constructing additional
facilities in the area.

      In addition to gathering activities, Questar Gas management is
involved in processing activities.  It continues to own a 50 percent
interest in the Blacks Fork processing plant, which has a daily
capacity of 84 MMcf and could be expanded.  A processing plant
strips liquids such as butane and ethane from natural gas volumes to
enable the producers to meet pipeline specifications for their gas
volumes and to take advantage of historical price advantages for
natural gas liquids when compared to natural gas volumes.  Questar
Gas Management and Wexpro jointly own a processing facility located
in the Canyon Creek area of southwestern Wyoming that has an
operating capacity of 43 MMcf per day.  It owns interests in other
processing plants in the Rocky Mountain and Midcontinent areas.

      Questar Gas Management's 2000 increase in gathering activities
reflects the increased value of natural gas volumes.  It also
processed more natural gas liquids during 2000 in response to their
increased value, but plant volumes slowed significantly in the last
months of 2000 as natural gas  became disproportionately valuable
when compared to natural gas liquids.

      Questar Energy Trading conducts energy marketing activities.
It combines gas volumes purchased from third parties and equity
production (production that is produced by affiliates) to build a
flexible and reliable portfolio.  Questar Energy Trading aggregates
supplies of natural gas for delivery to large customers, including
industrial users, municipalities, and other marketing entities.
During 2000, the Company marketed a total of 100.6 MMDth of natural
gas and .8 MMBbls of liquids and earned a margin of $.095 per
equivalent Dth.  (The volumes and margins exclude affiliated
production.)

      Questar Energy Trading uses derivatives as a risk management
tool to provide price protection for physical transactions involving
equity production (equity production is a term that refers to
production owned by QMR subsidiaries) and marketing transactions.
It executed hedges for equity production on behalf of Questar E&P
with a variety of contracts for different periods of time.  Questar
Energy Trading does not engage in speculative hedging transactions.

      As a wholesale marketing entity, Questar Energy Trading
concentrates on markets in the Pacific Northwest, Rocky Mountains,
Midwest, and western Canada that are close to reserves owned by
affiliates or accessible by major pipelines.

      Questar Energy Trading is expanding its capabilities in order
to sustain its activities in an increasingly competitive environment
in which parties are becoming more sophisticated.  During 2000, it,
through a limited liability company, commenced operating a private
storage facility the Clear Creek project in southwestern Wyoming
adjacent to several interstate pipelines.  The storage reservoir has
a working gas capacity of 4 Bcf.

Regulation

      The Company's operations are subject to various levels of
government controls and regulation in the United States and Canada
at the federal, state/provincial, and local levels.  Such regulation
includes requiring permits for the drilling of wells; maintaining
bonding requirements in order to drill or operate wells; submitting
and implementing spill prevention plans; submitting notices relating
to the presence, use and release of specified contaminants
incidental to oil and gas regulations; and regulating the location
of wells, the method of drilling and casing wells, surface usage and
restoration of properties upon which wells have been drilled, the
plugging and abandoning of wells and the transportation of
production.  QMR's operations are also subject to various
conservation matters, including the regulation of the size of
drilling and spacing units or proration unites, the number of wells
that may be drilled in a unit, and the unitization or pooling of oil
and gas properties. State conservation laws establish the maximum
rates of production from oil and gas wells, generally prohibit the
venting or flaring of gas, the impose certain requirements for the
ratable purchase of production.

      Some of QMR's leases, including many of its leases in the
Rocky Mountain area, are granted by the federal government and
administered by federal agencies.  These leases require compliance
with detailed financial regulations on such things as drilling and
operations on the leases and the calculation and payment of royalties.

      Various federal, state and local environmental laws and
regulations affect the Company's operations and costs.  These laws
and regulations concern the generation, storage, transportation,
disposal or discharge of contaminants into the environment and the
general protection of public health, natural resources, wildlife,
and the environment.  They also impose substantial liabilities for
any failure on the part of the Company to comply with them.

      Each province in Canada and the federal government of Canada
also have laws and regulations governing land tenure, royalties,
production rates and taxes, and environmental protection.


Competition and Customers

      QMR faces competition in all aspects of its business including
the acquisition of reserves and leases; obtaining goods, services,
and labor; and marketing its production.  The Company's competitors
include multinational energy companies and other independent
producers, many of which have greater financial resources than QMR has.

      The Company's business activities can be subject to seasonal
variations.  Historically, the demand for natural gas decreases
during the summer months and increases during the winter months.
The increasing demand for natural gas to generate electricity may
cause increased demand during the hottest months of the summer.
Weather (both in terms of temperatures and moisture) can have
dramatic impacts on natural gas prices and the Company's operations.

      The Company sells its natural gas production to a variety of
customers including pipelines, gas marketing firms, industrial
users, and local distribution companies.  QMR's crude volumes are
sold to refiners, remarketers and other companies, some of which
have pipeline facilities near the producing properties.  In the
event pipeline facilities are not available, crude oil is trucked to
storage, refining, or pipeline facilities.

      Questar E&P maintains regional offices in Denver, Colorado and
Tulsa and Oklahoma City in Oklahoma.  Canadian operations are
managed through an office in Calgary, Alberta.

Relationships with Affiliates

       The subsidiaries of QMR have important relationships with
their affiliates as described above.  Questar provides certain
administrative services, e.g., public and government relations,
financial and audit, to QMR and other members of the consolidated
group. Questar also sponsors the qualified and welfare plans in
which QMR's employees participate.  Each of the Company's
subsidiaries is responsible for a proportionate share of the costs
associated with these services and benefit plans.

Employees

       As of December 31, 2000, QMR had 412 employees in the United
States and 13 leased employees in Canada. None of these employees is
represented under collective bargaining agreements.  Employee
relations are generally deemed to be satisfactory.  QMR also
periodically engages independent consulting petroleum engineers,
environmental professionals, geologists, geophysicists, landmen and
attorneys on a fee basis.

ITEM 2.  PROPERTIES.

      Reserves.  The following table sets forth the Company's
estimated proved reserves, the 10 percent present value of the
estimated future net revenues from the reserves and the standardized
measure of discounted net cash flows as of December 31, 2000.  QMR's
reserves were estimated by Ryder Scott Company; H. J. Gruy and
Associates, Inc.; Netherland, Sewell & Associates, Inc.; Malkewicz
Hueni Associates, Inc.; Gilbert Laustsen Jung Associates Ltd.; and


Sproule Associates, Ltd.,  independent petroleum engineers.  The
Company does not have any long-term supply contracts with foreign
governments, or reserves of equity investees or of subsidiaries with
a significant minority interest.  These proved reserve volumes do
not include cost-of-service reserves managed and developed by Wexpro
for Questar Gas.

                                                December 31, 2000
                                          United States      Canada    Total

Estimated proved reserves
   Natural gas (Bcf)                           579.8         60.1      639.9
   Oil and NGL (MMBbls)                         11.3          3.7       15.0
Proved developed reserves (Bcfe)               492.3         74.1      566.4

Present value of estimated future net
   revenues before future income taxes
   discounted at 10% (in thousands) (1)      $2,348,638   $275,436  $2,624,074

Standardized measure of discounted net cash
   flows (in thousands) (2)                  $1,542,204   $149,417  $1,691,621

__________
(1)   Estimated future net revenue represents
      estimated future gross revenue to be generated
      from the production of proved reserves, net of
      estimated production and development costs
      (but excluding the effects of general and
      administrative expenses; debt service;
      depreciation, depletion and amortization; and
      income tax expense).

(2)   The standardized measure of discounted net cash
      flows prepared by the Company represent the present
      value of estimated future net revenues after income
      taxes, discounted at 10 percent.

      Estimates of the Company's proved reserves and future net
revenues are made using sales prices estimated to be in effect as
of the date of such reserve estimates and are held constant
throughout the life of the properties (except to the extent a
contract specifically provides for escalation).  Estimated
quantities of proved reserves and future net revenues are
affected by natural gas and oil prices, which have fluctuated
widely in recent years.  There are numerous uncertainties
inherent in estimating natural gas and oil reserves and their
estimated values, including many factors beyond the control of
the producer.  The reserve data set forth in this document
represent estimates.

        Reference should be made to Note 10 of the Notes to
Consolidated Financial Statements included in Item 14 of this
Report for additional information pertaining to the Company's
proved natural gas and oil reserves as of the end of each of the
last three years.

        During 2000, the Company filed estimated reserves as of
year-end of Form EIA-23 with the  Energy Information
Administration in the Department of Energy and will submit a
comparable report for 2000.  Although QMR uses the same technical
and economic assumption when it prepares the EIA-23, it is
obligated to report reserves for wells it operates, not for all
wells in which it has an interest, and to include the reserves
attributable to other owners in such wells.


      The following charts illustrate QMR's reserve statistics
for the years ended December 31, 1996 through 2000:

                     Oil and Gas Reserves (Bcfe)*
Year        Year-End Reserves Annual Production      Reserve Life (Years)

1996              493.6                   51.5                9.6
1997              469.3                   61.7                7.6
1998              574.1                   65.3                8.8
1999              597.6                   76.6                7.8
2000              730.1                   82.3                8.9

*Does not include cost of service reserves managed and developed
 by Wexpro for Questar Gas.

             Proportion of Proved Developed to Proved Reserves
                  and Proportion of Gas Reserves (Bcfe)*

Year    Total Proved    Proved Developed      Developed        Natural Gas
        Reserves             Reserves      Percent of Total    Percentage of
                                                              Proved Reserves
1996       493.6              410.1              83%                78%
1997       469.3              392.9              84%                81%
1998       574.1              506.0              88%                85%
1999       597.6              503.9              84%                86%
2000       730.1              566.4              78%                88%

*Does not include cost of service reserves managed and developed
 by Wexpro for Questar Gas.

Geographic Diversity of Producing Properties:

     The following table summarizes proved reserves by the Company's
major operating areas at December 31, 2000:

                                           Proved Reserves*    % of Total
                                                (Bcfe)

Mid-Continent                                    325.6            45%
Rocky Mountain Region (exclusive
    of Pinedale)                                 175.9            24%
Pinedale Anticline                               146.2            20%
Western Canada                                    82.4            11%

*Does not include cost of service reserves managed and developed
 by Wexpro for Questar Gas.

     Production.   The following table sets forth the Company's
net production volumes, the average sales prices per Mcf of gas,
Bbl of oil and Bbl of natural gas liquids produced, and the
production cost per Mcfe for the years ended December 31, 2000,
1999, and 1998, respectively:


                                                   Year Ended December 31,
                                                   2000     1999     1998

United States (excluding cost of
  service activities)
     Volumes produced and sold
        Gas (Bcf)                                   61.7     59.8     48.6
        Oil and NGL (MMBbls)                         1.5      1.9      1.9

     Sales Prices:
        Gas (per Mcf)                             $ 2.80   $ 2.02   $ 1.95
        Oil and NGL (per Bbl)                     $19.61   $13.31   $12.41
     Production costs per Mcfe                    $  .69   $  .59   $  .64

Canada
     Volumes produced and sold
         Gas (Bcf)                                   7.3      2.9      2.7
         Oil and NGL  (MMBbls)                        .7      0.4      0.4
     Sales Prices:
         Gas (per Mcf)                            $ 2.83   $ 1.61   $ 1.40
         Oil and NGL (per Bbl)                    $22.29   $16.56   $14.09
     Production costs per Mcfe                    $  .73   $  .67   $  .58

       Productive Wells.  The following table summarizes the
Company's productive wells as of December 31, 2000:

         Productive Wells (1) (2)

                       Gas Wells       Oil Wells       Total Wells
                    Gross      Net    Gross    Net    Gross     Net

United States       3,702    1,554    1,046    401    4,748   1,955
Canada                542      187      202     67      744     254

  Total:            4,244    1,741    1,248    468    5,492   2,209

        (1)  Although many of the Company's wells produce
             both oil and gas, a well is categorized as
             either an oil well or a gas well based upon the
             ratio of oil to gas production.

        (2)  Each well completed to more than one producing zone is
             counted as a single well.  There were 140 gross wells
             with multiple completions.

        The Company also held numerous overriding royalty interests
in gas and oil wells, a portion of which are convertible to
working interests after recovery of certain costs by third
parties.  After converting to working interests, these overriding
royalty interests will be included in the Company's gross and net
well count.

      Leasehold Acreage.  The following table summarizes
developed and undeveloped leasehold acreage in which the Company
owns a working interest as of December 31, 2000.  "Undeveloped
Acreage" includes (i) leasehold interests that already may have
been classified as containing proved undeveloped reserves; and
(ii) unleased mineral interest acreage owned by the Company.
Excluded from the table is acreage in which the Company's
interest is limited to royalty, overriding royalty, and other
similar interests.
                      Leasehold Acreage - December 31, 2000
                   Developed (1)           Undeveloped (2)            Total
                 Gross       Net         Gross        Net       Gross      Net
United States
 Arizona            -           -          480        450        480       450
 Arkansas      37,729      16,569        1,230        373     38,959    16,942
 California       760         265       23,102      9,043     23,862     9,308
 Colorado     176,651     125,297      207,581    104,852    384,232   230,149
 Idaho              -           -       44,175     10,643     44,175    10,643
 Illinois         172          39       14,307      3,997     14,479     4,036
 Indiana            -           -        1,621        467      1,621       467
 Kansas           134         134       44,330     16,430     44,464    16,564
 Kentucky           -           -       14,461      5,468     14,461     5,468
 Louisiana     15,246       9,992          404        397     15,650    10,389
 Michigan           -           -        6,200      1,266      6,200     1,266
 Minnesota          -           -          313        104        313       104
 Mississippi   25,706      21,408          859        273     26,565    21,681
 Montana       25,285      10,187      319,745     58,594    345,030    68,781
 Nevada           320         280          680        543      1,000       823
 New Mexico    90,297      66,349       32,006      9,553    122,303    75,902
 North Dakota   1,333         375      145,841     21,580    147,174    21,955
 Ohio              -            -          202         43        202        43
 Oklahoma   1,538,294     290,246       52,736     33,296  1,591,030   323,542
 Oregon             -           -       43,869      7,671     43,869     7,671
 South Dakota       -           -      204,558    107,988    204,558   107,988
 Texas        168,336      61,000       51,881     40,725    220,217   101,725
 Utah          45,712       35,001    109,180     43,280   154,892      78,281
 Washington         -           -       26,631     10,149     26,631    10,149
 West Virginia    969         115            -          -        969       115
 Wyoming      221,718     142,625      447,233    268,848    668,951   411,473

 Total
   U.S.     2,348,662     779,882    1,793,625    756,033  4,142,287 1,535,915

Canada
 Alberta      222,938      82,919      324,636    135,474    547,574   218,393
 British
   Columbia    33,069       8,485       42,108     21,719     75,177    30,204
 Saskatchewan   2,277       1,061        4,625      4,462      6,902     5,523

 Total
   Canada     258,284      92,465      371,369    161,655    629,653   254,120

 Total
   Acreage  2,606,946     872,347    2,164,994    917,688  4,771,940 1,790,035
  ________

      (1)  Developed acres are acres spaced or assignable to
           productive wells.

      (2)  Undeveloped acreage is leased acreage on which wells
           have not been drilled or completed to a point that would
           permit the production of commercial quantities of
           natural gas and oil regardless of whether such acreage
           contains proved reserves.  Of the aggregate 2,164,994
           gross and 917,688 net undeveloped acres, 114,827 gross
           and 30,747 net acres are held by production from other
           leasehold acreage.

      Substantially all the leases summarized in the preceding
table will expire at the end of their respective primary terms
unless the existing leases are renewed or production has been
obtained from the acreage subject to the lease prior to that
date, in which event the lease will remain in effect until the
cessation of production.  The following table sets forth the
gross and net acres subject to leases summarized in the preceding
table that will expire during the periods indicated:

                                                Acres Expiring
                                         Gross                  Net
Twelve Months Ending
   December 31, 2001                   154,070               58,641
   December 31, 2002                    88,980               44,787
   December 31, 2003                   141,354               62,639
   December 31, 2004                    74,890               49,327
   December 31, 2005 and later       1,705,700              702,294

    Drilling Activity.  The following table summarizes the number
of development and exploratory wells drilled by the Company,
including the cost-of-service wells drilled by Wexpro, during the
years indicated.

                                          Year Ended December 31,
                                   2000             1999            1998
                              Gross     Net     Gross     Net    Gross    Net
Development Wells
 United States
   Completed as natural
     gas wells                211     79.8      159     78.4     105     54.6
   Completed as oil wells       9      1.4        5      2.4      29      1.0
   Dry holes                   12      5.0       15      6.1      12      3.7
   Waiting on completion       36        -       29        -      13        -
   Drilling                    14        -        6        -       9        -

 Canada
   Competed as natural
     gas wells                 11      1.1        7      1.2       4      0.9
   Completed as oil wells       8      2.3        5      1.9      12      4.0
   Dry holes                    2      1.1        2      1.3       4      1.2
   Waiting on completion        2        -        2        -       2        -
   Drilling                     1        -        -        -       1        -

Total Development Wells       306     90.7      230     91.3     191    65.4


Exploratory Wells
 United States
   Completed as natural
     gas wells                  -        -        1      0.2       5      1.6
   Completed as oil wells       -        -        -        -       1        6
   Dry holes                    5      2.0        2      1.1       4      1.4
   Waiting on completion        -        -        1        -       -        -
   Drilling                     1        -        1        -       -        -

 Canada
   Competed as natural
     gas wells                  1       .2        -        -       -        -
   Completed as oil wells       1       .2        -        -       1       .3
   Dry holes                    2       .9        -        -       3      1.4
   Waiting on completion        -        -        -        -       -        -

Total Exploratory Wells        10      3.3        5      1.3      14      5.3

Total Wells                   316     94.0      235     92.6     205     70.7

      Operation of Properties.  The day-to-day operations of oil
and gas properties are the responsibility of an operator
designated under pooling or operating agreements.  The operator
supervises production, maintains production records, employs
field personnel and performs other functions.  The charges under
operating agreements customarily vary with the depth and location
of the well being operated.

      QMR is the operator of approximately 50 percent of its
wells.  As operator, QMR receives reimbursement for direct
expenses incurred in the performance of its duties as well as
monthly per-well producing and drilling overhead reimbursement at
rates customarily charged in the area to or by unaffiliated third
parties.  In presenting its financial data, QMR records the
monthly overhead reimbursement as a reduction of general and
administrative expense, which is a common industry practice.

      Title to Properties.  Title to properties is subject to
royalty, overriding royalty, carried, net profits, working and
other similar interests and contractual arrangements customary in
the oil and gas industry, liens for current taxes not yet due
and, in some instances, to other encumbrances.  The Company
believes that such burdens do not materially detract from the
value of such properties or from the respective interests therein
or materially interfere with their use in the operation of the
business.

      As is customary in the industry in the case of undeveloped
properties, little investigation of record title is made at the
time of acquisition (other than a preliminary review of local
records).  Investigations, generally including a title opinion of
outside counsel, are made prior to the consummation of an
acquisition of producing properties and before commencement of
drilling operations on undeveloped properties.

      Pinedale.  Both Questar E&P and Wexpro are involved in
Pinedale drilling.  During 2000, Questar E&P and Wexpro drilled
nine wells and completed six of them  in the Pinedale Anticline
area of Sublette County, Wyoming.  (Three of the wells will not
be completed until June of 2001 when winter drilling restrictions
are lifted.)  Drilling results and initial production tests


confirmed reserve expectations of 5-6 Bcf per well.  As of
December 31, 2000, gross daily production from 14 Company-owned
wells was estimated at 26 MMcf and 45 Bbl of oil.

      Questar E&P and Wexpro expect to continue drilling
activities in Pinedale when government restrictions permit.  On a
combined basis, they have an approximate 60 percent average
working interest in 14,800 acres in the Mesa Area of the Pinedale
Anticline and expect to drill between 135-150 wells based on
80-acre spacing.

      QMR's activities in Pinedale illustrate its long-term
approach.  Wexpro held the leasehold acreage by production as a
result of three wells drilled in the area during the mid-1970's.
Since the gas  reserves are contained in tight sands with a low
porosity, Questar E&P and Wexpro did not drill additional wells
in the Pinedale area until other companies developed new
stimulation techniques that fractured sandstone formations at
multiple intervals and successfully used such techniques to drill
wells in neighboring fields.  The Pinedale wells cost an average
of $2.2 million to drill and complete; this cost reflects the
completion depth of the wells (12,848 to 13,300 feet), the need
for special handling and multiple stimulations, and government
regulations that impose pad limitations and restrict drilling.
Current production profiles suggest that the average well may
produce on  a long-term basis after stabilizing between 2 and 4
MMcf per day within the first year or two after completion.
Questar E&P and Wexpro expect to continue drilling in the
Pinedale area during the next several years.

ITEM 3.  LEGAL PROCEEDINGS.

      There are various legal proceedings pending against QMR.
Significant cases are discussed below.

      BRIDENSTINE.  On January 4, 2001, a district court judge in
Oklahoma approved the settlement agreement in Bridenstine v.
Kaiser-Francis Oil Company, a class action lawsuit that was
originally filed against Questar E&P, other named affiliates
including Questar and QMR, and unrelated defendants in 1995.
Pursuant to the terms of the settlement, Questar E&P and Union
Pacific Resources Company (predecessor in interest to Questar
E&P) paid $22.5 million, with Questar E&P's portion being $16.5
million.  Although the Questar defendants disputed claims that
centered on allegations of an excessive and improper
transportation charged against royalty payments, they settled the
lawsuit to avoid continued legal costs and the uncertainty of a
jury verdict.

      GRYNBERG. Questar affiliates, including Questar E&P are
named defendants in a lawsuit filed by an independent producer
(Grynberg) under the Federal False Claims Act.  This case and the
75 substantially similar cases filed by Grynberg against
pipelines and their affiliates have been consolidated for
discovery and pre-trial motions in Wyoming's federal district
court.  The cases involve allegations of industry-wide
mismeasurement and undervaluation of gas volumes on which royalty
payments are due the federal government.  The complaint seeks
treble damages and imposition of civil penalties.  The federal
district judge has not ruled on the defendants' motion to dismiss.

      On March 8, 2001, the trial court judge granted a motion to
dismiss the lawsuit filed by Grynberg against several Questar
defendants including Questar Gas Management, Questar Energy
Trading and Questar Pipeline.  This case, which was filed in a
Utah state district court, claims that the Questar defendants
mismeasured gas volumes attributable to Mr. Grynberg's working


interest in a specified property in southwestern Wyoming.  The
plaintiff's allegations included breach of contract, negligent
misrepresentation, fraud, breach of fiduciary duty, etc. The
judge dismissed the lawsuit based on defendants' arguments that
the applicable statute of limitation had expired and there was no
basis to support fraudulent concealment claims, or independent
tort claims.

      QUINQUE.  Questar E&P, Questar Gas Management, Wexpro and
other Questar affiliates are among the 220 named defendants in
Quinque Operating Company v. Gas Pipelines, which was recently
transferred from the Wyoming federal district court where it had
been consolidated with the Grynberg cases to the Kansas state
court where it had been originally filed.  This case is very
similar to the cases filed by Mr. Grynberg against the pipeline
industry, but the allegations of systematic mismeasurement of
natural gas volumes and resulting underpayment of royalties are
made on behalf of private and state lessors, rather than on
behalf of the federal government.

      Royalty class actions are being asserted in numerous
states, including Wyoming, against other companies in the oil and
gas production and marketing businesses in which QMR's
subsidiaries participate.  Similar actions could be filed against
the Company.

      There are various other legal proceedings against
subsidiaries of QMR.  While it is not currently possible to
predict or determine the outcome of these proceedings, it is the
opinion of management that the outcome will not have a materially
adverse effect on the Company's results of operations, financial
position or liquidity.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     The Company did not submit any matters to a vote of its
stockholder during the last quarter of 2000.

                                 PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.

      All of the Company's outstanding shares of common stock,
$1.00 par value, are owned by Questar.  Information concerning
the dividends paid on such stock and the ability to pay dividends
is reported in the Statements of Common Shareholder's Equity and
the Notes to Financial Statements included in Item 14 of this
Report.

ITEM 6.  SELECTED FINANCIAL DATA.

      The Company, as the wholly-owned subsidiary of a reporting
company under the Securities and Exchange Act of 1934 (the
"Act"), is entitled to omit the information requested in this Item.


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION

RESULTS OF OPERATIONS

QUESTAR MARKET RESOURCES ("QMR" or "Market Resources" or the
"Company") conducts exploration and production, gas development,
gathering, processing and marketing activities. Following is a
summary of financial results and operating information.

                                                Year Ended December 31,
                                               2000        1999        1998
                                                       (In Thousands)
OPERATING INCOME
Revenues
  Natural gas sales                        $  193,359  $  125,245  $   98,767
  Oil and natural gas liquids sales            59,901      41,521      36,722
  Cost-of-service gas operations               74,492      61,705      61,448
  Energy marketing                            379,760     243,296     234,565
  Gas gathering and processing                 29,278      22,341      21,954
  Other                                         5,263       4,203       4,816
        Total revenues                        742,053     498,311     458,272

Operating expenses
  Energy purchases                            369,752     239,201     230,462
  Operating and maintenance                   106,703      79,916      73,763
  Depreciation and amortization                84,475      78,608      71,377
  Write-down of full cost oil
    and gas properties                                                 31,000
  Other taxes                                  36,262      21,516      24,988
  Wexpro settlement agreement -
    oil income sharing                          4,758       2,292       1,053
        Total operating expenses              601,950     421,533     432,643
          Operating income                 $  140,103  $   76,778  $   25,629

OPERATING STATISTICS
Production volumes
    Natural gas (in MMcf)                      68,963      62,712      51,309
    Oil and natural gas liquids (in Mbbl)
Questar Exploration & Production                2,225       2,311       2,340
Wexpro                                            521         555         554
Production revenue
     Natural gas (per Mcf)                 $     2.80  $     2.00  $     1.92
     Oil and natural gas liquids (per bbl)
 Questar Exploration & Production          $    20.50  $    13.92  $    12.70
 Wexpro                                    $    27.43  $    16.84  $    12.64
Wexpro investment base, net
     of deferred income taxes
     (in millions)                         $    124.8  $    108.9  $     97.6
Energy-marketing volumes
    (in thousands of equivalent dth)          105,632     112,982     113,513

Natural gas-gathering volumes (in Mdth)
    For unaffiliated customers                 92,969      84,961      72,908
    For Questar Gas                            36,791      32,050      29,893
    For other affiliated customers             25,068      19,659      17,720
        Total gathering                       154,828     136,670     120,521

    Gathering revenue (per dth)              $   0.13    $   0.15    $   0.16

Revenues

Revenues were 49% higher in 2000 when compared with 1999 because
of higher prices for natural gas, oil and NGL and increased
natural gas production.  Natural gas production rose 10% to 69
Bcf and the average selling price increased 40%.  U. S. gas
production increased 3% to 61.7 Bcf, while Canadian production
rose 152% to 7.3 Bcf.  Questar acquired Canadian reserves and
producing properties in January 2000.  Approximately 53% of gas
production in 2000 was hedged at an average price of $2.16 per
Mcf, net to the well.  Hedging activities reduced revenues from
gas sales by $33.7 million in 2000, but had an insignificant
impact in 1999 and 1998.

Selling prices of oil and NGL for nonregulated operations
increased 47% to a combined average of $20.50 per barrel and more
than offset a 4% decrease in production volumes. Approximately
73% of the nonregulated oil production was hedged at an average
price of $17.36 per barrel. Hedging activities reduced revenues
from oil sales by $15.5 million in 2000, but had an insignificant
impact in 1999 and 1998. Production declined in 2000 as a result
of selling nonstrategic properties in the fourth quarter of 1999.

For 2001, Questar has used swaps, costless collars and fixed
price contracts to hedge approximately 55% of estimated gas
production based on December 2000 reserves.  The average hedged
price is $2.90 per Mcf (net to the well) assuming floor prices on
collars.  The average hedged price increases to $3.15 per Mcf
(net to the well) if collar ceiling prices are assumed.
Approximately 62% of 2001 estimated oil production, based on
December 2000 reserves, is hedged at an average price of $17.20
per barrel, net to the well.  Quantities of hedged production in
any given month range between 49% and 66% for gas and 56% and 70%
for oil.

Revenues from cost-of-service operations were 21% higher in 2000
compared with 1999. Wexpro manages and develops oil and natural
gas properties on behalf of Questar Gas and receives a return on
its investment in successful wells. The natural gas production is
delivered to Questar Gas at cost of service. Oil is sold at
market prices.  Any net income from oil sales remaining after
recovery of expenses and Wexpro's return on investment is divided
between Wexpro and Questar Gas. Questar Gas's portion is reported
as oil-income sharing.  Wexpro's investment base, net of deferred
income taxes, grew 15% in 2000 when compared with 1999.  The
average return on investment was 19.5% in 2000 and 20% in 1999.

Higher energy prices were responsible for substantial increases
in revenues for energy marketing and improved plant-processing
margins.  Increased gas demand led to higher volumes of gas
gathering.

Revenues in 1999 improved 9% compared with 1998 as a result of
increased prices for gas, oil and NGL and a 22% rise in gas
production. Natural gas selling prices averaged 4% higher in
1999.


Operating Expenses

Operating and maintenance expenses were 34% higher in 2000
primarily due to an increase in the number of gas and oil
properties and increased legal costs in the settlement of a major
case. Depreciation and amortization expense increased 7% in 2000
due largely to a 10% improvement in natural gas production. The
combined U.S. and Canadian full-cost amortization rate was $.79
per thousand cubic feet equivalent (Mcfe) for 2000, down from
$.80 per Mcfe in 1999.  Other taxes, primarily production
related, rose 69% in 2000 driven by higher revenues and prices.

Interest and other income

Interest and other income was higher in 2000 due to a $3.9
million pre-tax gain from selling securities available for sale,
recording capitalized financing costs associated with an
underground storage project of $1.9 million and $1.4 million of
interest earned on qualifying hedging collateral.  Sales of
securities available for sale generated a $.4 million pre-tax
gain in 1999.

Debt expense

Interest expense increased due to higher short- and long-term
borrowing and to higher interest rates in 2000.

Income taxes

The effective combined federal, state and foreign income tax rate
was 34.9% in 2000 and 28.8% in 1999. Income tax rates were below
the combined statutory rate of about 40% primarily due to
nonconventional fuel credits, which amounted to $4.7 million in
2000,  $5.3 million in 1999 and $5.7 million in 1998.

Nonregulated Gas and Oil Reserves

Market Resources achieved a 261% reserve replacement ratio in
2000 compared with 131% in 1999. Reserve additions, revisions and
purchases, net of sales in place, amounted to 214.8 Bcfe in 2000,
more than double the 100.1 Bcfe added in 1999.  Gains in reserves
occurred through drilling results in the Pinedale Anticline and
the acquisition of 61.1 Bcfe of proved reserves in Canada. In
January 2001, Market Resources closed on the sale of 290
producing properties and a gas gathering system in the
Mid-continent for $27 million with an effective sale date of
November 2000.  The properties produced approximately 4.3 MMcf of
gas and 180 barrels of oil per day, but were not compatible with
the long-term strategic plans of the Company.  In the fourth
quarter of 1999, Market Resources sold producing properties,
mostly in the Permian Basin and Kansas, with combined daily
production of 4.3 MMcf of gas and 1,100 barrels of oil.

Market Resources achieved a five-year average finding cost of
$.86 per Mcfe, excluding cost-of-service operations, in 2000
compared with $.90 per Mcfe in 1999.

LIQUIDITY AND CAPITAL RESOURCES
Operating Activities
                                                  Year Ended December 31,
                                                2000        1999        1998
                                                          (In Thousands)
Net income                                    $85,042     $45,866     $16,162
Adjustments to net income                     108,758      90,077      99,543
Changes in operating assets
   and liabilities                            (54,680)      4,914      11,808

Net cash provided from
   operating activities                      $139,120    $140,857    $127,513


Net cash provided from operating activities decreased 1% in 2000
when compared with 1999 due to timing differences in accounts
receivable more than offsetting an 85% increase in net income.
The balances in accounts receivable and qualifying hedging
accounts increased as a result of higher energy prices. This was
partially offset by increases in accounts payable caused by
higher energy prices. The asset write-down in 1998 and the effect
on deferred income taxes were noncash transactions.

Investing Activities

Capital expenditures in 2000 primarily reflected exploration for
and development of gas and oil reserves and a purchase of a
Canadian company with 61.1 Bcfe of proved reserves.  Market
Resources participated in drilling 316 wells (94 net wells) in
2000 that resulted in 223 gas wells, 18 oil wells, 21 dry holes
and 54 wells in progress at year end. The success rate was 92%.
The details of capital expenditures for 2000, 1999 and a forecast
of 2001 were as follows:
                                  Year Ended December 31,
                               2001
                            Forecast       2000         1999
                                     (In Thousands)

Exploratory drilling          $8,700        $752      $1,538
Development drilling          76,000      97,361      64,642
Other exploration             10,700       8,647      19,464
Reserve acquisitions          32,000      65,130       3,704
Production                     5,100       8,382       8,746
Gathering and processing      28,000       3,330      12,705
Electric generation           25,000
Storage                        7,100      11,513       4,108
General                        1,500         855      19,362
                            $194,100    $195,970    $134,269

Financing Activities

Approximately 80% of the net cash used in investing activities
was supplied by net cash flow provided from operating activities.
Proceeds from short-term borrowing and cash released from an
escrow account provide the remaining sources of funding in 2000.
Proceeds from a 1999 sale of nonstrategic gas and oil properties
were placed in an escrow account pending a possible reinvestment
in other producing properties.  When this did not occur, the
funds were released from escrow.  A sale with similar conditions
and amounting to $27 million was finalized in January 2001.

In the third quarter of 2000, Market Resources initiated an
unrated commercial-paper program with a $100 million capacity.
Commercial-paper borrowings are limited to and supported by
available capacity on Market Resources' existing revolving credit
facility.  Market Resources had a commercial-paper balance of
$12.5 million at December 31, 2000.

On March 6, 2001, Market Resources issued in a public offering
$150 million of 7.5% notes due 2011. Market Resources applied the
proceeds of the debt offering to repay a portion of its
outstanding floating-rate debt.  In 1999, Market Resources
entered into a long-term revolving-credit facility with a
syndication of banks and a $300 million capacity.  Market
Resources had borrowed $244.4 million as of December 31, 2000
under this arrangement.


QMR's consolidated capital structure consisted of 35% long-term
debt and 65% common shareholder's equity at December 31, 2000.
The Company's long-term debt has been rated BBB+ by Standard and
Poor's and Baa2 by Moody's.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK.

QMR's primary market-risk exposures arise from commodity-price
changes for natural gas, oil and other hydrocarbons and changes
in long-term interest rates.  The Company has an investment in a
foreign operation that may subject it to exchange-rate risk.  QMR
also has reserved pipeline capacity for which it is obligated to
pay $3 million annually for the next six years, regardless of
whether it is able to market the capacity to others.

Hedging Policy

The Company has established policies and procedures for managing
market risks through the use of commodity-based derivative
arrangements.  A primary objective of these hedging transactions
is to protect the Company's commodity sales from adverse changes
in energy prices. The volume of production hedged and the mix of
derivative instruments employed are regularly evaluated and
adjusted by management in response to changing market conditions
and reviewed periodically by the Board of Directors.
Additionally, under the terms of the Market Resources' revolving
credit facility, not more than 75% of  Market Resources'
production quantities can be committed to hedging arrangements.
The Company does not enter into derivative arrangements for
speculative purposes.

Energy-Price Risk Management

Energy-price risk is a function of changes in commodity prices as
supply and demand fluctuate. Market Resources bears a majority of
the risk associated with changes in commodity prices.  The
Company uses hedge arrangements in the normal course of business
to limit the risk of adverse price movements; however, these same
arrangements usually limit future gains from favorable price
movements.

Market Resources held hedge contracts covering the price exposure
for about 50.5 million dth of gas and 1 million barrels of oil at
December 31, 2000.  A year earlier the contracts covered 72.1
million dth of natural gas and 2.4 million barrels of oil.  The
hedging contracts exist for a significant share of Questar-owned
gas and oil production and for a portion of gas-marketing
transactions.  The contracts at December 31, 2000, had terms
extending through December 2003, with about 91% of those
contracts expiring by the end of 2001.

The financial mark-to-market adjustment of gas and oil price-hedging
contracts at December 31, 2000 was a negative $98 million and
represented a liability owed to counterparties if terminated.  A
10% decline in gas and oil prices would decrease the
mark-to-market adjustment by $18.1 million; while a 10% increase
in prices would increase the mark-to-market adjustment by $18.1
million.  The mark-to-market adjustment of gas and oil
price-hedging contracts at December 31, 1999 was a negative $6.2
million. A 10% decline in gas and oil prices at that time would
have caused a positive mark-to-market adjustment of $16.7
million. Conversely, a 10% increase in prices would have resulted
in a $16.3 million negative mark-to-market adjustment.  The
calculations used energy prices posted on the NYMEX, various
"into the pipe" postings and fixed prices for the indicated
measurement dates.  These sensitivity calculations do not
consider changes in the fair value of the corresponding scheduled
physical transactions (i.e., the correlation between the index
price and the price to be realized for the physical delivery of
gas or oil production), which should largely offset the change in
value of the hedge contracts.


Interest-Rate Risk Management

The Company held floating-rate long-term debt at December 31,
2000 and 1999 of $244.4 million and $264.9 million, respectively.
The book value of variable-rate debt approximates fair value.  If
interest rates declined by 10%, interest costs paid on
variable-rate long-term debt would decrease about $1.7 million in
2000 and 1999.

Securities Available for Sale

Securities available for sale represent equity instruments traded
on national exchanges.  The value of these investments is subject
to day to day market volatility.

Foreign Currency Risk Management

The Company does not hedge the foreign currency exposure of its
foreign operation's net assets and long-term debt.  Long-term
debt held by the foreign operation amounting to $54.4 million
(U.S.) is expected to be repaid from future operations of the
foreign company.

Forward-Looking Statements

This report includes "forward-looking statements" within the
meaning of Section 27(a) of the Securities Act of 1933, as
amended, and Section 21(e) of the Securities Exchange Act of
1934, as amended.  All statements other than statements of
historical facts included or incorporated by reference in this
report, including, without limitation, statements regarding the
Company's future financial position, business strategy, budgets,
projected costs and plans and objectives of management for future
operations, are forward-looking statements.  In addition,
forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "will", "could",
"expect", "intend", "project", "estimate", "anticipate",
"believe", "forecast", or "continue" or the negative thereof or
variations thereon or similar terminology.  Although these
statements are made in good faith and are reasonable
representations of the Company's expected performance at the
time, actual results may vary from management's stated
expectations and projections due to a variety of factors.

Important assumptions and other significant factors that could
cause actual results to differ materially from those expressed or
implied  in forward-looking statements include changes in general
economic conditions, gas and oil prices and supplies,
competition, rate-regulatory issues, regulation of the Wexpro
settlement agreement, availability of gas and oil properties for
sale or for exploration and other factors beyond the control of
the Company.  These other factors include the rate of inflation,
quoted prices of securities available for sale, the weather and
other natural phenomena, the effect of accounting policies issued
periodically by accounting standard-setting bodies, and adverse
changes in the business or financial condition of the Company.


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

      The Company's financial statements are included in Part IV,
Item 14, herein.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE.

      QMR has not changed its independent auditors or had any
disagreements with them concerning accounting matters and financial
statement disclosures within the last 24 months.


                               PART III

      The Company, as the wholly-owned subsidiary of a reporting
company under the Act, is entitled to omit all information requested
in PART III (Items 10-13).


                               PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K.

      (a)(1)(2)  Financial Statements and Financial Statement
Schedules.  The financial statements identified in the List of
Financial Statements are filed as part of this Report.

      (3)  Exhibits.  The following is a list of exhibits required
to be filed as a part of this Report in Item 14(c).

Exhibit No.   Description

 3.1.*        Articles of Incorporation dated April 27, 1988
              for Utah Entrada Industries, Inc.  (Exhibit
              No. 3.1. to the Company's Form 10 dated April
              12, 2000.)

 3.2.*        Articles of Merger, dated May 20, 1988, of
              Entrada Industries, Inc., a Delaware
              corporation and Utah Entrada Industries, Inc,
              a Utah corporation.  (Exhibit No. 3.2. to the
              Company's Form 10 dated April 12, 2000.)

 3.3.*        Articles of Amendment dated August 31, 1998,
              changing the name of Entrada Industries, Inc.
              to Questar Market Resources, Inc.  (Exhibit
              No. 3.3. to the Company's Form 10 dated April
              12, 2000.)

 3.4.*        Bylaws (as amended effective February 8,
              2000.)  (Exhibit No. 3.4. to the Company's
              Form 10 dated April 12, 2000.)


 4.1.*        Indenture dated as of March 1, 2001, between the Questar
              Market Resources, Inc. and Bank One, NA, as Trustee for
              the Company's 71/2% Notes due 2011.  (Exhibit No. 4.01.
              to the Company's Current Report on Form 8-K dated March
              6, 2001.)

 4.2.*        Form of 71/2% Notes due 2011.  (Exhibit No. 4.02. to the
              Company's Current Report on Form 8-K dated March 6, 2001.)

 4.3.         U.S. Credit Agreement, dated April 19, 1999,
              by and among Questar Market Resources, Inc.,
              as U.S. borrower, NationsBank, N.A., as U.S.
              agent, and certain financial institutions, as
              lenders, with the First Amendment dated May
              17, 1999,  the Second Amendment dated July 30,
              1999, the Third Amendment dated November 30,
              1999, the Fourth Amendment dated April 17,
              2000, the Fifth Amendment dated October 6,
              2000, and the Sixth Amendment dated February
              9, 2001.  (Exhibit No. 4.1. to the Company's
              Form 10 dated April 12, 2000, for the U. S.
              Credit Agreement, and the First, Second and
              Third Amendments; Exhibit No. 4.1. to the
              Company's Form 10/A dated November 9, 2000,
              for the Fourth and Fifth Amendments.)  The
              Sixth Amendment is filed with this Report.1

 4.4.         Long-term debt instruments with principal amounts not
              exceeding 10 percent of QMR's total consolidated assets
              are not filed as exhibits.  The Company will furnish a
              copy of these agreements to the Commission upon request.

 10.1.*       Stipulation and Agreement, dated October 14, 1981,
              executed by Mountain Fuel Supply Company [Questar Gas
              Company]; Wexpro Company; the Utah Department of
              Business Regulations, Division of Public Utilities; the
              Utah Committee of Consumer Services; and the staff of
              the Public Service Commission of Wyoming.  (Exhibit No.
              10(a) to Questar Gas Company's Form 10-K Annual Report
              for 1981.)

 21.          Subsidiary Information.

 24.          Power of Attorney

      *Exhibits so marked have been filed with the Securities and
Exchange Commission as part of the referenced filing and are
incorporated herein by reference.

      (b)   The Company filed two Current Reports on Form 8-K during
the last quarter of 2000.  The first report was dated November 21,
2000, and disclosed the settlement agreement in Bridenstine v.
Kaiser-Francis Oil Company.  The second report was dated December 7,
2000, and contained a press release on the results of drilling at
the Pinedale Anticline area.  Neither report included any financial
statements.





                      ANNUAL REPORT ON FORM 10-K

               ITEM 8, ITEM 14(a) (1) and (2), and (d)

                     LIST OF FINANCIAL STATEMENTS

             FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                     YEAR ENDED DECEMBER 31, 2000

                    QUESTAR MARKET RESOURCES, INC.

                         SALT LAKE CITY, UTAH


FORM 10-K -- ITEM 14 (a) (1) AND (2)

QUESTAR MARKET RESOURCES, INC.

LIST OF FINANCIAL STATEMENTS AND
FINANCIAL STATEMENT SCHEDULES


The following financial statements of Questar Market Resources Inc.
are included in Item 8:

      Statements of income, Years ended December 31, 2000, 1999 and
      1998

      Balance sheets, December 31, 2000 and 1999

      Statements of common shareholder's equity, Years ended
      December 31, 2000, 1999 and 1998

      Statements of cash flows, Years ended December 31, 2000, 1999
      and 1998

      Notes to financial statements

Financial statement schedules, for which provision is made in the
applicable accounting regulations of the Securities and Exchange
Commission, are not required under the related instructions or are
inapplicable, and therefore have been omitted.


                    Report of Independent Auditors


Board of Directors
Questar Market Resources, Inc.

We have audited the accompanying balance sheets of Questar Market
Resources, Inc. as of December 31, 2000 and 1999, and the related
statements of income and common shareholder's equity and cash flows
for each of the three years in the period ended December 31, 2000.
These financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with auditing standards
generally accepted in the United States.  Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Questar
Market Resources, Inc. at December 31, 2000 and 1999, and the
results of its operations and its cash flows for each of the three
years in the period ended December 31, 2000, in conformity with
accounting principles generally accepted in the United States.


                                          /s/ Ernst & Young

                                              Ernst & Young

Salt Lake City, Utah
March 6, 2001


QUESTAR MARKET RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
                                                Year Ended December 31,
                                             2000         1999        1998
                                                     (In Thousands)
REVENUES
From unaffiliated customers                $649,200    $418,603    $382,791
From affiliates                              92,853      79,708      75,481
TOTAL REVENUES                              742,053     498,311     458,272

OPERATING EXPENSES
Cost of natural gas and other
  products sold                             369,752     239,201     230,462
Operating and maintenance                   106,703      79,916      73,763
Depreciation and amortization                84,475      78,608      71,377
Write-down of full cost oil
  and gas properties                                                 31,000
Other taxes                                  36,262      21,516      24,988
Wexpro settlement agreement -
  oil income sharing                          4,758       2,292       1,053

TOTAL OPERATING EXPENSES                    601,950     421,533     432,643

OPERATING INCOME                            140,103      76,778      25,629

INTEREST AND OTHER  INCOME                   10,631       4,272       3,638

INCOME (LOSS) FROM UNCONSOLIDATED
    AFFILIATES                                2,776         763        (930)

DEBT EXPENSE                                (22,922)    (17,363)    (12,631)

INCOME FROM CONTINUING
  OPERATIONS BEFORE INCOME TAXES            130,588      64,450      15,706

INCOME TAX EXPENSE (CREDIT)                  45,546      18,584      (1,019)

INCOME FROM CONTINUING OPERATIONS            85,042      45,866      16,725

DISCONTINUED OPERATIONS, net of income
   taxes of $347                                                       (563)

NET INCOME                                   $85,042     $45,866     $16,162
See notes to financial statements.


QUESTAR MARKET RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
                                                         December 31,
                                                      2000        1999
                                                       (In Thousands)
CURRENT ASSETS
Cash and cash equivalents                          $    3,980
Notes receivable from Questar Corporation                      $    4,000
Accounts receivable, net of allowance of
  $1,775 in 2000 and $1,350 in 1999                   126,030      64,364
Accounts receivable from affiliates                    17,427      11,459
Qualifying hedging collateral                          48,377
Federal income taxes recoverable                        4,976
Inventories, at lower of average cost or market
Gas and oil storage                                     7,618       8,863
Material and supplies                                   2,298       2,390
Prepaid expenses and other                              4,828       4,452
TOTAL CURRENT ASSETS                                  215,534      95,528

PROPERTY, PLANT AND EQUIPMENT
Oil and gas properties - full cost accounting
Proved properties                                   1,082,009     943,349
Unproved properties, not being amortized               76,216      69,777
Support equipment and facilities                       13,179      13,408
Cost-of-service oil and gas operations -
  successful efforts accounting                       348,403     318,451
Gathering, processing and marketing                   137,484     124,691
                                                    1,657,291   1,469,676

Less allowances for depreciation and amortization
Oil and gas properties - full cost accounting         601,620     544,491
Cost-of-service oil and gas operations -
  successful efforts accounting                       193,029     180,867
Gathering, processing and marketing                    58,388      53,337
                                                      853,037     778,695

NET PROPERTY, PLANT AND EQUIPMENT                     804,254     690,981

INVESTMENT IN UNCONSOLIDATED
    AFFILIATES                                         15,417      13,301

OTHER ASSETS
Cash held in escrow account                             5,387      36,727
Securities available for sale                                      10,402
Other                                                   4,344         952
                                                        9,731      48,081

                                                   $1,044,936  $  847,891


LIABILITIES AND SHAREHOLDER'S EQUITY
                                                      2000        1999
                                                       (In Thousands)
CURRENT LIABILITIES
Checks outstanding in excess
  of cash balances                                             $    1,246
Short-term loans                                   $   12,500
Notes payable to Questar                               51,000      24,500
Accounts payable and accrued expenses
Accounts and other payables                           140,254      67,385
Accounts payable to affiliates                          3,761       2,952
Federal income taxes                                                6,232
Other taxes                                            19,359      14,266
Interest                                                  951       1,443

Total accounts payable and accrued
  expenses                                            164,325      92,278

TOTAL CURRENT LIABILITIES                             227,825     118,024

LONG-TERM DEBT                                        244,377     264,894

DEFERRED INCOME TAXES                                  96,459      59,936

OTHER LIABILITIES                                      13,847      14,674

MINORITY INTEREST                                       5,483       2,529

COMMITMENTS AND CONTINGENCIES

SHAREHOLDER'S EQUITY
Common stock - par value $1 per share;
  authorized, 25,000,000 shares; issued
  and outstanding, 4,309,427 shares                     4,309       4,309
Additional paid-in capital                            116,027     116,027
Retained earnings                                     338,130     270,388
Cumulative other comprehensive loss                    (1,521)     (2,890)

                                                    $1,044,936   $847,891
See notes to consolidated financial statements.


QUESTAR MARKET RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
                               Additional                Other        Compre-
                       Common    Paid-in     Retained  Comprehensive  hensive
                       Stock     Capital     Earnings  Income (loss)  Income
                                                 (In Thousands)

Balance at
 January 1, 1998        $4,309   $116,027    $238,955     $  (8)
1998 net income                                16,162                 $16,162
Cash dividends                                (15,900)
Foreign currency
 translation
 adjustment, net
 of income taxes
 of $53                                                       93           93

Balance at
 December 31, 1998      4,309    116,027     239,217          85      $16,255
1999 net income                               45,866                   45,866
Cash dividends                               (16,600)
Dividend of shares
 of Questar Energy
 Services                                      1,905
Unrealized loss on
securities available for
 sale, net of income
 taxes of $1,557                                           (2,515)     (2,515)
Foreign currency
 translation adjustment,
 net of income taxes
 of $284                                                     (460)       (460)

Balance at
 December 31, 1999      4,309    116,027     270,388       (2,890)    $42,891
2000 net income                               85,042                   85,042
Cash dividends                              (17,300)
Unrealized gain on
 securities available
 for sale, net of
 income taxes
 of $1,557                                                  2,515       2,515
Foreign currency
 translation
 adjustment, net
 of income taxes
 of $1,018                                                 (1,146)     (1,146)

Balance at
 December 31, 2000     $4,309   $116,027    $338,130      $(1,521)    $86,411

See notes to financial statements.


QUESTAR MARKET RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                              2000        1999        1998
                                                      (In Thousands)
OPERATING ACTIVITIES
Net income                                  $ 85,042    $ 45,866    $ 16,162
Adjustments to reconcile net
 income to net cash provided
 from operating activities
Depreciation and amortization                 85,085      81,150      71,951
Deferred income taxes                         29,740       9,381      (4,619)
Write-down of oil and gas properties                                  31,000
(Income) loss from unconsolidated
 affiliates,net of cash distributions         (2,117)        (66)      1,211
Gain from sale of securities                  (3,950)       (388)
Changes in operating assets
  and liabilities
Accounts receivable and qualifying
 hedging collateral                         (112,757)     (2,631)     20,572
Inventories                                    1,337        (468)     (4,996)
Prepaid expenses and other                      (423)        (83)        555
Accounts payable and accrued expenses          74,226      5,655      (7,002)
Federal income taxes                          (11,207)       127       2,399
Other assets                                   (3,125)      (783)       (628)
Other liabilities                              (2,731)     3,097         908
NET CASH PROVIDED FROM
 OPERATING ACTIVITIES                         139,120    140,857     127,513

INVESTING ACTIVITIES
Capital expenditures
Purchase of property, plant
  and equipment                              (195,970)  (109,405)   (252,671)
Other investments                                        (24,864)     (1,875)
                                             (195,970)  (134,269)   (254,546)
Proceeds from disposition of
 property, plant and equipment                  3,014     38,629       7,857
Proceeds from sale of securities               18,424      1,214
NET CASH USED IN INVESTING ACTIVITIES        (174,532)   (94,426)   (246,689)

FINANCING ACTIVITIES
Decrease in notes receivable
  from Questar                                  4,000     21,100       8,400
Change in notes payable to Questar             26,500    (97,300)     77,500
Increase in short-term debt                    12,500
Change in cash in escrow                       31,340    (36,727)
Checks written in excess of
 cash balances                                 (1,246)     1,246
Issuance of long-term debt                     61,725    275,000      64,343
Payment of long-term debt                     (80,087)  (195,000)    (14,283)
Other financing                                 2,955
Payment of dividends                          (17,300)   (16,600)    (15,900)
NET CASH PROVIDED FROM (USED IN)
 FINANCING ACTIVITIES                          40,387    (48,281)    120,060
Foreign currency translation
 adjustments                                     (995)       (44)         (4)
Change in cash and cash equivalents             3,980     (1,894)        880
Beginning cash and cash equivalents                        1,894       1,014
ENDING CASH AND CASH EQUIVALENTS            $  3,980     $     -    $  1,894

See notes to consolidated financial statements.


QUESTAR MARKET RESOURCES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Summary of Accounting Policies

Principles of Consolidation:  The consolidated financial
statements contain the accounts of Questar Market Resources,
Inc. and subsidiaries (the "Company" or "QMR" or "Market
Resources"). The Company is a wholly-owned subsidiary of
Questar Corporation ("Questar").  QMR, through its
subsidiaries, conducts gas and oil exploration, development and
production, gas gathering and processing, and wholesale energy
marketing.  Questar Exploration and Production ("Questar E &
P"), conducts exploration, development and production
activities.   Wexpro Company  ("Wexpro") operates and develops
producing properties on behalf of Questar Gas.  Questar Gas
Management conducts gas gathering and plant processing
activities.  Questar Energy Trading performs wholesale energy
marketing activities and through a 75% interest in Clear Creek
Storage Company, LLC, operates a gas-storage field.  All
significant intercompany balances and transactions have been
eliminated in consolidation.

Investments in Unconsolidated Affiliates:  QMR uses the equity
method to account for investment in affiliates in which it does
not have control.  The Company owns a 15% interest in Canyon
Creek Compression Co., a 50% interest in Blacks Fork Gas
Processing Co. and a 15% interest in Roden Participants, Ltd.
Generally, its investment in these affiliates equals the
underlying equity in net assets.

Use of Estimates:  The preparation of financial statements in
conformity with accounting principles generally accepted in the
United States requires management to make estimates and
assumptions that affect the amounts of assets and liabilities
and disclosure of contingent liabilities reported in the
financial statements and accompanying notes.  Actual results
could differ from those estimates.

Revenue Recognition:   Revenues are recognized in the period
that services are provided or products are delivered. The
Company uses the sales method of accounting for gas revenues,
whereby revenue is recognized on all gas sold to purchasers.  A
liability is recorded to the extent that the Company has an
imbalance in excess of its share of remaining reserves in an
underlying property. The Company's net gas imbalances at
December 31, 2000, 1999 and 1998 were not significant.

Wexpro Settlement Agreement - Oil Income Sharing: Wexpro
settlement agreement-oil income sharing represents payments
made to Questar Gas for its share of the income from oil and
NGL products associated with cost of service oil properties
pursuant to the terms of the Wexpro settlement agreement (Note 8).

Regulation of Underground Storage: Clear Creek Storage Company,
LLC operates an underground gas storage facility that is
regulated by the Federal Energy Regulatory Commission (FERC).
The FERC establishes rates for the storage of natural gas, and
regulates the extension and enlargement or abandonment of
jurisdictional natural gas facilities.  Regulation is intended
to permit the recovery, through rates, of the cost of service,
including a return on investment.

Cash and Cash Equivalents:  Cash equivalents consist
principally of repurchase agreements with maturities of three
months or less.  In almost all cases, the repurchase agreements
are highly liquid investments in overnight securities made
through our commercial bank accounts that result in available
funds the next business day.

Notes Receivable from Questar:  Notes receivable from Questar
represent interest bearing demand notes for cash loaned to
Questar until needed in the Company's operations.  The funds
are centrally managed by Questar and earn an interest rate that
is identical to the interest rate paid by the Company for
borrowings from Questar.

Property, Plant and Equipment:  Property, plant and equipment
is stated at cost.  The Company uses the full-cost accounting
method for a majority of its gas and oil exploration and
development activities.  However, as ordered by the PSCU, the
successful efforts method of accounting is utilized with
respect to costs associated with certain "cost of service" oil


and gas properties managed and developed by Wexpro and
regulated for ratemaking purposes.  Cost of service oil and gas
properties are those properties for which the operations and
return on investment are regulated by the Wexpro settlement
agreement (see Note 8).  In accordance with the settlement
agreement, production from the gas properties operated by
Wexpro is delivered to Questar Gas at Wexpro's cost of
providing this service.  That cost includes a return on
Wexpro's investment.  Oil produced from the cost of service
properties is sold at market prices. Proceeds are credited,
pursuant to the terms of the settlement agreement, allowing
Questar Gas to share in the proceeds for the purpose of
reducing natural gas rates.

Full cost accounting

Under the full cost method, all costs associated with the
acquisition, exploration and development of oil and gas
reserves, including certain directly related internal employee
costs, are capitalized.  Such amounts include the cost of
drilling and equipping productive wells, dry hole costs, lease
acquisition costs, delay rentals, and costs related to such
activities.  The internal costs capitalized are directly
attributable to acquisition, exploration, and development
activities and do not include costs related to production,
general corporate overhead or similar activities.  Exclusive of
field-level costs, the Company capitalized $3.6 million, $3.0
million and $2.6 million of internal costs in 2000, 1999 and
1998, respectively.  Costs associated with production and
general corporate activities are expensed in the period
incurred.  Sales of oil and gas properties, whether or not
being amortized currently, are accounted for as adjustments of
capitalized costs, with no gain or loss recognized, unless such
adjustments would significantly alter the relationship between
capitalized costs and proved reserves.

The Company limits, on a country-by-country cost-center basis,
the capitalized costs of oil and gas properties, net of
accumulated amortization and related deferred taxes, to the
full-cost ceiling.  The full-cost ceiling comprises the present
value of estimated future net revenues from proved oil and gas
reserves plus the cost of unproved properties not being
amortized, all adjusted for the effect of related income taxes.
The present value calculation is based upon current economic
and operating conditions and estimated future development
expenditures, discounted at 10%. If capitalized costs exceed
the full-cost ceiling, the excess is expensed.  In 1998, the
Company recorded a $31 million write-down of oil and gas
properties pursuant to the ceiling limitation required by the
full-cost accounting method.

Capitalized costs are amortized, on a country-by-country
cost-center basis, by an energy equivalent unit-of-production
method based upon production and estimates of proved gas and
oil reserves.  The Company presently has two cost centers: the
United States and Canada.  Amortizable costs include
developmental drilling in progress as well as estimates of
future development costs of proved reserves, but exclude the
costs of certain unproved gas and oil properties until the
properties are evaluated.  The estimated costs of future site
restoration, dismantlement, and abandonment of producing
properties are expected to be offset by the estimated salvage
value of the lease and well equipment.

The aggregate costs of unproved properties not being amortized
are assessed at least annually for possible impairments or
reduction in value.  Significant properties are assessed
individually.  If a reduction in value has occurred, costs
being amortized are increased. Of the $76.2 million of net
unproved property costs at December 31, 2000, excluded from the
amortizable base, $22.9 million, $10.4 million, and $20.5
million were incurred in 2000, 1999 and 1998, respectively.
Based on anticipated future exploration and development
activities, the Company expects the majority of the costs of
unproved properties currently excluded to be evaluated and
included in the amortization calculation within the next five
years.

Successful efforts accounting

The Company uses the successful efforts method of accounting
for costs associated with the development of cost-of-service
oil and gas properties.  The cost to drill and equip
development wells, successful or unsuccessful, and construct
related facilities are capitalized.  Geological and geophysical
costs are expensed as incurred.

Capitalized costs are amortized on an individual field basis
using the unit-of-production method based upon proved developed
oil and gas reserves attributable to the field.  Costs of
future site restoration, dismantlement, and abandonment for


producing properties are accrued as part of depreciation and
amortization expense for tangible equipment by assuming no
salvage value in the calculation of the unit of production
rate.

Gathering, processing and marketing

The investments in gathering facilities, processing plants and
other general support property, plant and equipment are
generally depreciated using the straight-line method based upon
estimated useful lives ranging from 3 to 20 years.

SFAS 121

The Company follows the provisions of Statement of Financial
Accounting Standards (SFAS) 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of" in evaluating impairment of the Company's cost of service
oil and gas properties (accounted for under the successful
efforts method) and its gathering, processing and other
property, plant and equipment.

Depreciation and amortization

                                            2000        1999        1998
                                                  (In Thousands)
Depreciation and amortization expense
 Full-cost oil and
   gas properties                          $64,619     $61,057     $55,015
 Cost-of-service oil
   and gas properties                       13,922      12,665      11,379
 Gathering, processing
   and marketing                             5,934       4,886       4,983
                                           $84,475     $78,608     $71,377

Average depreciation and amortization rates per Mcf equivalent
for the 12 months ended December 31, were as follows:

Full-cost amortization rate
U.S.                                        $ 0.78      $ 0.81      $ 0.83
Canada (in U.S. dollars)                      0.85        0.65        1.04
Combined U.S. and Canada                      0.79        0.80        0.85
Cost-of-service oil and gas
  properties                                $ 0.44      $ 0.42      $ 0.39

Capitalized Interest and Allowance for Funds Used During
Construction:  The Company capitalizes interest costs, when
applicable, related to gathering, processing, and marketing
activities during the construction period of plant and
equipment.  Interest costs related to full cost oil and gas
activities are expensed in the period incurred.  Gross debt
expense aggregated $22,922,000, $17,363,000, and $13,249,000,
in 2000, 1999 and 1998, respectively.  Debt expense was reduced
by $618,000 of capitalized interest in 1998. Under provisions
of the Wexpro settlement agreement, the Company capitalizes an
allowance for funds used during construction (AFUDC) on
cost-of-service construction projects.  The FERC requires the
capitalization of AFUDC during the construction period of plant
and equipment. AFUDC amounted to $2,163,000, $357,000, and
$745,000, in 2000, 1999, and 1998, respectively, and is
included in Interest and Other Income in the Consolidated
Statements of Income.

Foreign Currency Translation:  The Company conducts gas and oil
exploration and production in western Canada.  The local
currency is the functional currency of the Company's foreign
operations. Translation from the functional currency to U. S.
dollars is performed for balance sheet accounts using the
exchange rate in effect at the balance-sheet date.  Revenue and
expense accounts are translated using an average exchange rate
for the period. Adjustments resulting from such translations
are reported as a separate component of other comprehensive
income in shareholder's equity.  Deferred income taxes have
been provided on translation adjustments because the earnings
are not considered to be permanently invested.

Market Risks: The Company's primary market-risk exposures arise
from commodity price changes for natural gas and oil, changes
in long-term interest rates, and foreign currency exchange
rates.


Hedging  Policy:  The Company has established policies and
procedures for managing market risks through the use of
commodity-based derivative arrangements.  A primary objective
of these hedging transactions is to protect the Company's
commodity sales from adverse changes in energy prices. The
volume of production hedged and the mix of derivative
instruments employed are regularly evaluated and adjusted by
management in response to changing market conditions and
reviewed periodically by the Board of Directors.  Additionally,
under the terms of the Company's revolving credit facility, not
more than 75% of Market Resources' production quantities can be
committed to hedging arrangements. The Company does not enter
into derivative arrangements for speculative purposes.

Energy Price Risk Management:  Market Resources enters into
swaps, futures contracts or options agreements to hedge
exposure to price fluctuations in connection with marketing of
the Company's natural gas and oil production, and to secure a
known margin for the purchase and resale of gas, oil and
electricity in marketing activities. It is expected that there
is a high degree of correlation between the changes in market
value of such contracts and the market price ultimately
received on the hedged physical transactions. The timing of
production and of the hedge contracts is closely matched. Hedge
prices are established in the areas of Market Resources'
production operations. The Company settles most contracts in
cash and recognizes the gains and losses on hedge transactions
during the same time period as the related physical
transactions. Cash flows from the hedge contracts are reported
in the same category as cash flows from the hedged assets.
Contracts which do not have high correlation with the related
physical transactions are marked-to-market and recognized in
the current period income.

Interest Rate Risk Management:  The Company borrows funds under
variable interest rate arrangements. Variable-rate agreements
expose the Company to market risk related to changes in
interest rates.

Credit Risk:  The Company's primary market areas are the Rocky
Mountain regions of the United States and Canada and the
Mid-continent region of the United States.  Exposure to credit
risk may be impacted by the concentration of customers in these
regions due to changes in economic or other conditions.
Customers include numerous industries that may be affected
differently by changing conditions.  Management believes that
its credit-review procedures, loss reserves, customer deposits
and collection procedures have adequately provided for usual
and customary credit-related losses.  Commodity-based hedging
arrangements also expose the Company to credit risk.  The
Company monitors the creditworthiness of its counterparties,
which generally are major financial institutions, and believes
that losses from non-performance are unlikely to occur.

Income Taxes: The Company accounts for income tax expense on a
separate return basis.  Pursuant to the Internal Revenue Code
and associated regulations, the Company's operations are
consolidated with those of Questar and its subsidiaries for
income tax reporting purposes.  The Company records tax
benefits as they are generated.  The Company receives payments
from Questar for such tax benefits as they are utilized on the
consolidated return.

Comprehensive Income: Comprehensive income is the sum of net
income as reported in the Consolidated Statement of Income and
other comprehensive income transactions reported in the
Consolidated Statement of Statements of Shareholder's Equity.
Other comprehensive income transactions that currently apply to
QMR result from changes in market value of securities available
for sale and changes in holding value resulting from foreign
currency translation adjustments. These transactions are not
the culmination of the earnings process, but result from
periodically adjusting historical balances to market value.
Income or loss is realized when the securities available for
sale are sold.  The balance in accumulated foreign currency
translation adjustments amounted to a negative $1,521,000 and a
negative $375,000, at December 31, 2000 and 1999, respectively.
The balance of an unrealized loss on securities available for
sale was $2,515,000 at December 31, 1999.  Income is realized
when the securities available for sale are sold.  Proceeds from
sales of available for sale securities were $18.4 million and
$1.2 million for the year ended December 31, 2000 and 1999,
respectively.  Income tax expenses associated with realized
gains from selling securities available for sale were $1.5
million in 2000 and $.1 million in 1999. Beginning in 2001,
other comprehensive income will include mark-to-market
adjustments of the Company's qualified energy derivatives.


The balances of cumulative other comprehensive losses for the
12 months ended December 31, were as follows:

                                            2000         1999
                                             (In Thousands)

Unrealized loss on securities                          ($2,515)
Foreign currency translation
  adjustment                               ($1,521)       (375)
Cumulative other comprehensive
  income                                   ($1,521)    ($2,890)

New Accounting Standard:  The Company is required to adopt the
accounting provisions of SFAS 133, as amended, "Accounting for
Derivative Instruments and Hedging Activities" beginning in
January 2001.  SFAS 133 addresses the accounting for derivative
instruments, including certain derivative instruments embedded
in other contracts.  Under the standard, entities are required
to carry all derivative instruments in the balance sheet at
fair value.  The accounting for changes in fair value, which
result in gains or losses, of a derivative instrument depends
on whether such instrument has been designated and qualifies as
part of a hedging relationship and, if so, depends on the
reason for holding it.  If certain conditions are met, entities
may elect to designate a derivative instrument as a hedge of
exposure to changes in fair value, cash flows or foreign
currencies. If the hedged exposure is a fair-value exposure,
the gain or loss on the derivative instrument is recognized in
earnings in the period of the change together with the
offsetting loss or gain on the hedged item attributable to the
risk being hedged.  If the hedged exposure is a cash-flow
exposure, the effective portion of the gain or loss on the
derivative instrument is reported initially as a component of
other comprehensive income in the shareholders' equity section
of the balance sheet and subsequently reclassified into
earnings when the forecasted transaction affects earnings. Any
amounts excluded from the assessment of hedge effectiveness, as
well as the ineffective portion of the gain or loss, is
reported in earnings immediately.

As of January 1, 2001, the Company structured a majority of its
energy derivative instruments as cash flow hedges. As a result
of adopting SFAS 133 in January 2001, the Company expects to
record a liability for derivative instruments of approximately
$121 million. The offset to this amount, net of income taxes,
will be recorded as a loss in other comprehensive income in the
shareholders' equity section of the balance sheet.  The
fair-value calculation does not consider changes in fair value
of the corresponding scheduled equity physical transactions.

Acquisitions:  On January 26, 2000, a subsidiary of QMR
acquired 100% of the outstanding shares of Canor Energy Ltd
from NI Canada ULC, a subsidiary of Northwest Natural Gas Co.
for cash of $61 million (US) plus the assumption of $5.4
million of short-term debt.   The transaction was accounted for
as a purchase.  Canor owns an interest in more than 800 wells
located in Alberta, British Columbia and Saskatchewan provinces
of Canada. Canor's proven gas and oil reserves at the time of
purchase were estimated at 61.1 billion cubic feet equivalent.

Reclassifications:  Certain reclassifications were made to the
1999 and 1998 financial statements to conform with the 2000
presentation.

Note 2 - Debt

QMR has a $300 million revolving credit facility agented by
Bank of America.  Borrowing under this agreement amounted to
$244.4 million and $264.9 million at December 31, 2000 and
1999, respectively.   The average interest rate as of December
31, was 7.01% in 2000 and 6.54% in 1999.  The loan is segmented
into United States and Canadian portions.  The United States
portion of the loan is a 5-year facility with $230 million
available. The Canadian portion amounts to $70 million and is a
6-year facility.  The interest rate is generally equal to LIBOR
plus a premium.  QMR's revolving credit facility contains
covenants specifying a minimum amount of net equity and a
maximum ratio of debt to equity. Under the most restrictive
terms of the revolving credit facility, Market Resources could
pay a dividend of $84.2 million.


Maturities of long-term debt for the five years following
December 31, 2000, in thousands of dollars were as follows:

                    2001     $        -
                    2002          2,719
                    2003         12,719
                    2004        182,719
                    2005          2,719

Questar makes loans to QMR under a short-term borrowing
arrangement.  Short-term notes payable to Questar outstanding
as of December 31, 2000 amounted to $51 million with an
interest rate of 6.91% and $24.5 million as of December 31,
1999 with an interest rate of 6.61%.

On March 6, 2001, Market Resources issued in a public offering
$150 million of 7.5% notes due 2011.  Market Resources applied
the proceeds of the debt offering to repay a portion of its
outstanding floating-rate debt.

Cash paid for interest was $23,414,000 in 2000, $16,964,000 in
1999 and $13,229,000 in 1998.

Note 3 - Financial Instruments and Risk Management

The carrying amounts and estimated fair values of the Company's
financial instruments were as follows:

                                  December 31, 2000       December 31, 1999
                                Carrying   Estimated    Carrying   Estimated
                                Value     Fair Value    Value     Fair Value
                                                (In Thousands)
Financial assets
  Cash and cash equivalents      $3,980      $3,980
  Notes receivable from
    Questar                                              $4,000      $4,000
Financial liabilities
    Short-term loans             63,500      63,500      25,746      25,746
    Long-term debt              244,377     244,377     264,894     264,894
Gas and oil price hedging
  contracts                        -        (98,000)       -         (6,200)

The Company used the following methods and assumptions in
estimating fair values:  (1) Cash and cash equivalents, notes
receivable and short-term loans - the carrying amount
approximates fair value;  (2) Long-term debt - the carrying
amount of variable-rate debt approximates fair value;  (3) Gas
and oil price hedging contracts - the fair value of contracts
is based on market prices as posted on the NYMEX from the last
trading day of the year.

The average price of the oil contracts at December 31, 2000,
was $18.30 per barrel and was based on the average of fixed
amounts in contracts which settle against the NYMEX.  All oil
contracts relate to Company-owned production where basis
adjustments would result in a net to the well price of  $17.20
per barrel.  The average price of the gas contracts at December
31, 2000 was $3.87 per MMBtu representing the average of
contracts with different terms including fixed, various "into
the pipe" postings and NYMEX references.  Gas-hedging contracts
were in place for Market Resources-owned production and
gas-marketing transactions. Transportation and
heat-value adjustments on the hedges of Company-owned gas as of
December 31, 2000, would result in a price between $2.90 and
$3.15 per Mcf, net back to the well.

Fair value is calculated at a point in time and does not
represent the amount the Company would pay to retire the debt
securities.  In the case of gas and oil price-hedging
activities, the fair value calculation does not consider the
the fair value of the corresponding scheduled physical
transactions (i.e., the correlation between the index price and
the price to be realized for the physical delivery of gas or
oil production).


Energy-Price Risk Management

Market Resources held hedge contracts covering the price
exposure for about 50.5 million dth of gas and 1 million
barrels of oil at December 31, 2000.  A year earlier the
contracts covered 72.1 million dth of natural gas and 2.4
million barrels of oil.  The hedging contracts exist for a
significant share of Questar-owned gas and oil production and
for a portion of gas-marketing transactions.  The contracts at
December 31, 2000, had terms extending through December 2003,
with about 91% of those contracts expiring by the end of 2001.
A primary objective of energy-price hedging is to protect
product sales from adverse changes in energy prices. The
Company does not enter into hedging contracts for speculative
purposes.

Credit Risk.

The Company's primary market areas are the Rocky Mountain
regions of the United States and Canada and the Mid-continent
region of the United States.  Exposure to credit risk may be
impacted by the concentration of customers in these regions due
to changes in economic or other conditions.  Customers include
individuals and numerous industries that may be affected
differently by changing conditions.  Management believes that
its credit-review procedures, loss reserves, customer deposits
and collection procedures have adequately provided for usual
and customary credit-related losses.  Commodity-based hedging
arrangements also expose the Company to credit risk.  The
Company monitors the creditworthiness of its counterparties,
which generally are major financial institutions, and believes
that losses from non-performance are unlikely to occur.

Interest-Rate Risk Management

The Company held floating-rate long-term debt at December 31,
2000 and 1999. The book value of variable-rate debt
approximates fair value.

Foreign Currency Risk Management

The Company does not hedge the foreign currency exposure of its
foreign operation's net assets and long-term debt. Long-term
debt held by the foreign operation amounting to $54.4 million
(U.S.) is expected to be repaid from future operations of the
foreign company.

Note 4 - Income Taxes

The components of income taxes for years ended December 31 were
as follows:
                                  2000         1999         1998
                                         (In Thousands)
Federal
    Current                      $13,678     $11,411      $4,263
    Deferred                      22,330       4,826         (86)
State
    Current                        1,129       1,568         228
    Deferred                       2,015         620       1,007
Foreign                            6,394         159      (6,431)
                                 $45,546     $18,584     ($1,019)

The difference between income tax expense and the tax computed
by applying the statutory federal income tax rate of 35% to
income from continuing operations before income taxes is
explained as follows:
                                             2000         1999        1998
                                                    (In Thousands)
Income from continuing operations
    before income taxes                    $130,588     $64,450     $15,706

Federal income taxes at
  statutory rate                            $45,706     $22,558      $5,497
State income taxes, net of federal
    income tax benefit                        2,043       1,422         803

Nonconventional fuel credits                 (4,655)     (5,282)     (5,736)
Foreign income taxes                          2,474          48      (1,771)
Other                                           (22)       (162)        188
    Income taxes                            $45,546     $18,584     ($1,019)

Effective income tax rate                      34.9%       28.8%        -

Significant components of the Company's deferred income taxes
at December 31 were as follows:

                                               2000         1999
                                                 (In Thousands)
Deferred tax liabilities
  Property, plant and equipment              $106,472     $74,333
  Other                                           624         509
    Total deferred tax liabilities            107,096      74,842

Deferred tax assets
   Alternative minimum tax and
       nonconventional fuel credit
       carryforwards                                        2,468
   Reserves, compensation plans
        and other                              10,637      12,438
                                               10,637      14,906
    Net deferred income taxes                 $96,459     $59,936

The Company paid $25,586,000 in 2000 and $7,183,000 in 1999 for
income taxes.  In 1998, Market Resources received $1,856,000 in
settlement of income taxes.

Note 5 - Litigation and Commitments

On January 4, 2001, a district court judge in Texas County,
Oklahoma, approved the settlement agreement reached by the
Questar defendants and Union Pacific Resources Company,
predecessor in interest to Questar Exploration & Production
(QE&P), as defendants in the case of Bridenstine v.
Kaiser-Francis Oil Company.  Under the terms of the settlement,
the Company and Union Pacific Resources paid a total of $22.5
million ($16.5 million by the Company) to resolve all of the
issues in the litigation. The Questar defendants disputed
plaintiffs' claims, but settled the lawsuit to avoid the
uncertainty of a jury verdict. Payment of the settlement funds
did not have a material adverse effect on the Company's results
of operations, financial position, or liquidity.


There are various other legal proceedings against Market
Resources.  While it is not currently possible to predict or
determine the outcomes of these proceedings, it is the opinion
of management that the outcomes will not have a materially
adverse effect on the Company's results of operations,
financial position or liquidity.

Questar Energy Trading has contracted for firm-transportation
services with various pipelines to transport 76.2 Mdth per day
of gas. The contracts extends for six years and have an annual
cost of approximately $3 million. Due to market conditions and
competition, it is possible that Questar Energy Trading may be
unable to sell enough gas to fully utilize the contracted
capacity.  Questar Energy Trading has reserved firm-storage
capacity of 1,065 Mdth per day with Questar Pipeline through
2008 with an annual cost of  $627,000.

The minimum future payments under the terms of long-term
operating leases for the Company's primary office locations for
the four years following December 31, 2000, are as follows:

                            (In Thousands)

               2001             $1,885
               2002              1,445
               2003                522
               2004                 44

Total minimum future rental payments have not been reduced for
sublease rental receipts of  $187,000, and $24,000, which are
expected to be received in the years ended December 31, 2001,
and 2002, respectively. Total rental expense amounted to
$2,087,000 in 2000, $1,804,000 in 1999 and $1,397,000 in 1998.
Sublease rental receipts were $118,000 in 2000 and $94,000 in
1999.

Note 6 - Employment Benefits

Pension Plan: Substantially all of QMR's employees are covered
by Questar's defined benefit pension plan, although some
employees have elected other benefits in place of a pension
benefit. Benefits are generally based on age at retirement,
years of service and highest earnings in a consecutive 72-pay
period interval during the ten years preceding retirement.  The
Company's policy is to make contributions to the plan at least
sufficient to meet the minimum funding requirements of
applicable laws and regulations. Plan assets consist
principally of equity securities and corporate and U.S.
government debt obligations. Pension cost was $385,000 in 2000,
$887,000 in 1999 and $761,000 in 1998.

Market Resources' portion of plan assets and benefit
obligations is not determinable because the plan assets are not
segregated or restricted to meet the Company's pension
obligations.  If the Company were to withdraw from the pension
plan, the pension obligation for the Company's employees would
be retained by the pension plan.  At December 31, 2000,
Questar's accumulated benefit obligation exceeded the fair
value of plan assets.

Postretirement Benefits Other Than Pensions:  Market Resources
pays a portion of health-care costs and life insurance costs
for employees.  The Company linked the health-care benefits to
years of service and limited the Company's monthly health care
contribution per individual to 170% of the 1992 contribution.
Employees hired after December 31, 1996, do not qualify for
postretirement medical benefits under this plan.  The Company's
policy is to fund amounts allowable for tax deduction under the
Internal Revenue Code.  Plan assets consist of equity
securities, and corporate and U.S. government debt obligations.
The Company is amortizing a transition obligation over a
20-year period beginning in 1992.  Costs of postretirement
benefits other than pensions were $1,654,000 in 2000,
$1,158,000 in 1999 and $1,018,000 in 1998.

Market Resources' portion of plan assets and benefit
obligations related to postretirement medical and life
insurance benefits is not determinable because the plan assets
are not segregated or restricted to meet the Company's
obligations.


Postemployment Benefits:  Market Resources recognizes the net
present value of the liability for postemployment benefits,
such as long-term disability benefits and health-care and
life-insurance costs, when employees become eligible for such
benefits.  Postemployment benefits are paid to former employees
after employment has been terminated but before retirement
benefits are paid. The Company accrues the present value both
of current and future costs.  The Company's postemployment
benefit liability at December 31, 2000 and 1999 was $555,000
and $381,000, respectively based on a discount rate of 7.75%.

Employee Investment Plan:  The Company participates in
Questar's Employee Investment Plan (EIP), which allows eligible
employees to purchase Questar common stock or other investments
through payroll deduction of pretax earnings.  The Company pays
for contributions of Questar common stock to the EIP of
approximately 80% of the employees' purchases of the maximum of
6% of eligible earnings and contributes an additional $200 of
common stock in the name of each eligible employee. The
Company's expense and contribution to the plan was $1,125,000
in 2000, $895,000 in 1999 and $811,000 in 1998.

Note 7 - Related Party Transactions

QMR receives a significant portion of its revenues from
services provided to Questar Gas Company.  The Company received
$92,455,000 in 2000, $79,324,000 in 1999 and $75,171,000 in
1998 for operating cost-of-service gas properties, gathering
gas and supplying a portion of gas for resale, among other
services provided to Questar Gas.  Operation of cost-of-service
gas properties is described in Wexpro Settlement Agreement
(Note 8).  The Company also received revenues from other
affiliated companies totaling $397,000 in 2000, $384,000 in
1999 and $310,000 in 1998.

Questar performs certain administrative functions for QMR.  The
Company was charged for its allocated portion of these services
which totaled $6,626,000 in 2000, $4,469,000 in 1999 and
$3,970,000 in 1998. These costs are included in operating and
maintenance expenses and are allocated based on each
affiliate's proportional share of revenues, net of gas costs;
property, plant and equipment; and payroll.  Management
believes that the allocation method is reasonable.

QMR's subsidiaries contracted for transportation and storage
services with Questar Pipeline and paid $2,146,000 in 2000,
$3,378,000 in 1999 and $3,968,000 in 1998 for those services.

Questar InfoComm Inc is an affiliated company that provides
some data processing and communication services to Market
Resources.  The Company paid Questar InfoComm $1,904,000 in
2000, $2,276,000 in 1999 and $2,273,000 in 1998.

QMR has a 5-year lease with Questar for space in an office
building located in Salt Lake City, Utah and owned by a third
party.  The third party has a lease arrangement with Questar
Corp, which in turn sublets office space to affiliated
companies. The annual lease payment, which began October of
1997, is $863,000.

The Company received interest income from affiliated companies
of $355,000 in 2000, $681,000 in 1999 and $1,908,000 in 1998.
Market Resources incurred debt expense to affiliated companies
of $2,520,000 in 2000, $3,350,000 in 1999 and $3,331,000 in
1998.

Note 8 - Wexpro Settlement Agreement

Wexpro's operations are subject to the terms of the Wexpro
settlement agreement.  The agreement was effective August 1,
1981, and sets forth the rights of Questar Gas's utility
operations to share in the results of Wexpro's operations.  The
agreement was approved by the PSCU and PSCW in 1981 and
affirmed by the Supreme Court of Utah in 1983.  Major
provisions of the settlement agreement are as follows:

a.  Wexpro continues to hold and operate all oil-producing
properties previously transferred from Questar Gas's nonutility
accounts. The oil production from these properties is sold at
market prices, with the revenues used to recover operating


expenses and to give Wexpro a return on its investment.  The
after-tax rate of return is adjusted annually and is
approximately 13.64%.  Any net income remaining after recovery
of expenses and Wexpro's return on investment is divided
between Wexpro and Questar Gas, with Wexpro retaining 46%.

b.  Wexpro conducts developmental oil drilling on productive
oil properties and bears any costs of dry holes.  Oil
discovered from these properties is sold at market prices, with
the revenues used to recover operating expenses and to give
Wexpro a return on its investment in successful wells.  The
after-tax rate of return is adjusted annually and is
approximately 18.64%.  Any net income remaining after recovery
of expenses and Wexpro's return on investment is divided
between Wexpro and Questar Gas, with Wexpro retaining 46%.

c.  Amounts received by Questar Gas from the sharing of
Wexpro's oil income are used to reduce natural-gas costs to
utility customers.

d.  Wexpro conducts developmental gas drilling on productive
gas properties and bears any costs of dry holes. Natural gas
produced from successful drilling is owned by Questar Gas.
Wexpro is reimbursed for the costs of producing the gas plus a
return on its investment in successful wells.  The after-tax
return allowed Wexpro is approximately 21.64%.

e.  Wexpro operates natural-gas properties owned by Questar
Gas. Wexpro is reimbursed for its costs of operating these
properties, including a rate of return on any investment it
makes.  This after-tax rate of return is approximately 13.64%.

Note 9 - Business Segment Information

QMR is a sub-holding company that has three primary business
segments: exploration and production, the management and
development of cost of service properties, and gathering,
processing and marketing. QMR's reportable segments are
strategic business units with similar operations and management
objectives.  The reportable segments are managed separately
because each segment requires different  operational assets,
technology and management strategies.
                                                 Year Ended December 31,
                                             2000         1999        1998
                                                     (In Thousands)
Revenues from Unaffiliated Customers
  Exploration and production               $245,728    $162,475    $135,509
  Cost of service                            15,179       8,844      10,025
  Gathering, processing and marketing       388,293     247,284     237,257
                                           $649,200    $418,603    $382,791

Revenues from Affiliated Companies
  Exploration and production               $     18    $      -    $      -
  Cost of service                            73,721      62,335      58,581
  Gathering, processing and marketing        19,114      17,373      16,900
                                           $ 92,853    $ 79,708    $ 75,481

Depreciation and Amortization Expense
  Exploration and production               $ 64,619    $ 61,057    $ 55,015
  Cost of service                            13,922      12,665      11,379
  Gathering, processing and marketing         5,934       4,886       4,983
                                           $ 84,475    $ 78,608    $ 71,377

Operating Income (Loss)
  Exploration and production               $ 89,862    $ 37,406    $ (6,063)
  Cost of service                            38,502      32,948      28,218
  Gathering, processing and marketing        11,739       6,424       3,474
                                           $140,103    $ 76,778    $ 25,629

Interest and Other Income
  Exploration and production               $  2,606    $  2,209    $  2,256
  Cost of service                               472         534         971
  Gathering, processing and marketing         7,553       1,529         411
                                           $ 10,631    $  4,272    $  3,638

Debt Expense
  Exploration and production               $ 17,976    $ 14,770    $ 11,552
  Cost of service                               721         582         149
  Gathering, processing and marketing         4,225       2,011         930
                                           $ 22,922    $ 17,363    $ 12,631

Income Taxes
  Exploration and production              $  25,411    $  4,037    $(12,102)
  Cost of service                            13,873      12,020      10,387
  Gathering, processing and marketing         6,262       2,527         696
                                          $  45,546    $ 18,584    $ (1,019)

Income (Loss) From Continuing Operations
  Exploration and production              $  49,371    $ 20,808    $ (3,257)
  Cost of service                            24,380      20,880      18,653
  Gathering, processing and marketing        11,291       4,178       1,329
                                          $  85,042    $ 45,866    $ 16,725

Fixed Assets - Net
  Exploration and production              $ 569,784    $482,043    $496,884
  Cost of service                           155,374     137,584     129,573
  Gathering, processing and marketing        79,096      71,354      69,055
                                          $ 804,254    $690,981    $695,512

Capital Expenditures
  Exploration and production              $ 149,098    $ 81,863    $219,608
  Cost of service                            32,048      21,076      26,653
  Gathering, processing and marketing        14,824      31,330       8,285
                                          $ 195,970    $134,269    $254,546

GEOGRAPHIC INFORMATION
 Revenues
  United States                           $ 703,981    $485,995    $447,798
  Canada                                     38,072      12,316      10,474
                                          $ 742,053    $498,311    $458,272


 Fixed Assets - Net
  United States                           $ 698,959    $ 654,961   $662,260
  Canada                                    105,295       36,020     33,252
                                          $ 804,254    $ 690,981   $695,512

Note 10 - Supplemental Oil and Gas Information (Unaudited)

The Company uses the full-cost accounting method for the
majority of its oil and gas exploration and development
activities.  However, as ordered by the Public Service
Commission of Utah, the successful efforts method of accounting
is utilized with respect to costs associated with certain
cost-of-service oil and gas properties managed and developed by
Wexpro and regulated for ratemaking purposes.  Cost-of-service
oil and gas properties are those properties for which the
operations and return on investment are regulated by the Wexpro
settlement agreement (See Note 8).

Oil and Gas Exploration and Development Activities:  The
following information is provided with respect to Questar's oil
and gas exploration and development activities, located in the
United States and Canada.

Capitalized Costs

The aggregate amounts of costs capitalized for oil and gas
exploration and development activities and the related amounts
of accumulated depreciation and amortization follow:

As of December 31,                      United      Canada      Total
                                        States
                                                (In Thousands)
2000
  Proved properties                    $962,942    $119,067  $1,082,009
  Unproved properties                    48,429      27,787      76,216
  Support equipment and
    facilities                           12,002       1,177      13,179
                                      1,023,373     148,031   1,171,404
  Accumulated depreciation
    and amortization                    558,884      42,736     601,620
                                       $464,489    $105,295    $569,784

1999
  Proved properties                    $885,333     $58,016    $943,349
  Unproved properties                    58,248      11,529      69,777
  Support equipment and
    facilities                           12,418         990      13,408
                                        955,999      70,535   1,026,534
  Accumulated depreciation
    and amortization                    509,976      34,515     544,491
                                       $446,023     $36,020    $482,043

1998
  Proved properties                    $869,514     $48,723    $918,237
  Unproved properties                    49,724      12,763      62,487
  Support equipment and
    facilities                           13,949         929      14,878
                                        933,187      62,415     995,602
  Accumulated depreciation
    and amortization                    469,555      29,163     498,718
                                       $463,632     $33,252    $496,884


Unproved Properties Excluded from Full-Cost Amortization

Unproved properties are excluded from full-cost amortization
until evaluated.  A summary of costs excluded from amortization
at December 31, 2000, and the period in which these costs were
incurred are listed below by cost center:
                                       Year Costs Incurred
                                                                     1997 and
                      Total        2000        1999        1998        Prior
                                         (In Thousands)

United States
  Acquisition       $35,387      $2,932      $7,266     $17,689       $7,500
  Exploration        13,042       2,340       2,967       1,868        5,867
                     48,429       5,272      10,233      19,557       13,367

Canada
  Acquisition        23,786      14,903          71         534        8,278
  Exploration         4,002       2,703         125         382          792
                     27,788      17,606         196         916        9,070
Total U. S.
    and Canada      $76,217     $22,878     $10,429     $20,473      $22,437

Costs Incurred

The following costs were incurred in oil and gas exploration
and development activities:

Year Ended December 31,                  United      Canada      Total
                                         States
                                                 (In Thousands)

2000
Property acquisition
Unproved                                 $3,082     $14,885     $17,967
Proved                                    1,202      31,900      33,102
Exploration                               5,412       3,078       8,490
Development                              65,709      30,470      96,179
                                        $75,405     $80,333    $155,738

1999
Property acquisition
Unproved                                $12,547        $351     $12,898
Proved                                    3,746          18       3,764
Exploration                               7,467         501       7,968
Development                              53,488       3,745      57,233
                                        $77,248      $4,615     $81,863

1998
Property acquisition
Unproved                                $29,367        $145     $29,512
Proved                                  126,723       3,144     129,867
Exploration                              10,055       1,222      11,277
Development                              43,090       5,363      48,453
                                       $209,235      $9,874    $219,109

Results of Operations

Following are the results of operations of Market Resources'
oil and gas exploration and development activities, before
corporate overhead and interest expenses.  The Company recorded
write-downs of its full-cost oil and gas properties in
accordance with the limitation of its full-cost ceiling in
1998.

                                            United
                                            States      Canada      Total
Year Ended December 31, 2000                       (In Thousands)
Revenues
   From unaffiliated customers             $207,656     $38,072    $245,728
   From affiliates                               18                      18
      Total revenues                        207,674      38,072     245,746

Production expenses                          49,116       9,370      58,486
Depreciation and amortization                54,942       9,677      64,619
Total expenses                              104,058      19,047     123,105

Revenues less expenses                      103,616      19,025     122,641
Income taxes - Note A                        33,890      10,939      44,829
Results of operations before
  corporate overhead and interest
  expenses                                  $69,726      $8,086     $77,812

Year Ended December 31, 1999
Revenues                                   $150,159     $12,316    $162,475

Production expenses                          41,948       3,681      45,629
Depreciation and amortization                57,545       3,512      61,057
Total expenses                               99,493       7,193     106,686

Revenues less expenses                       50,666       5,123      55,789
Income taxes - Note A                        13,616       2,567      16,183
Results of operations before
  corporate overhead and interest
  expenses                                  $37,050      $2,556     $39,606

Year Ended December 31, 1998
Revenues                                   $125,035     $10,474    $135,509

Production expenses                          38,788       3,004      41,792
Depreciation and amortization                49,740       5,275      55,015
Write-down of oil and gas properties         19,000      12,000      31,000
Total expenses                              107,528      20,279     127,807

Revenues less expense                        17,507      (9,805)      7,702
Income taxes - Note A                         1,191      (4,030)     (2,839)
Results of operations before
  corporate overhead and interest
  expenses                                  $16,316     ($5,775)    $10,541


Note A - Income tax expenses has been reduced by
nonconventional fuel tax credits of $4,655,000 in 2000,
$5,282,000 in 1999 and $5,736,000 in 1998.


Estimated Quantities of Proved Oil and Gas Reserves

Estimates of the reserves located in the United States were
made by Ryder Scott Company, H. J. Gruy and Associates, Inc.,
Netherland, Sewell & Associates, and Malkewicz Hueni
Associates, Inc., independent reservoir engineers.  Estimated
Canadian reserves were prepared by Gilbert Laustsen Jung
Associates Ltd. and Sproule Associates Ltd.   Reserve estimates
are based on a complex and highly interpretive process that is
subject to continuous revision as additional production and
development-drilling information becomes available.  The
quantities reported below are based on existing economic and
operating conditions at December 31.  All oil and gas reserves
reported were located in the United States and Canada.  The
Company does not have any long-term supply contracts with
foreign governments or reserves of equity investees.



                       United   Nat. Gas           United    Oil
                       States    Canada    Total   States   Canada    Total
                                (MMcf)                      (MBbl)
Proved Reserves
Balance at January
   1, 1998            357,529    21,134   378,663   12,664   2,435    15,099
Revisions of
   estimates              378    (3,568)   (3,190)  (3,165)    238    (2,927)
Extensions and
  discoveries          28,598     1,984    30,582      442     261       703
Purchase of reserves
  in place            129,207     5,110   134,317    3,720      71     3,791
Sale of reserves
  in place               (440)               (440)     (76)              (76)
Production            (48,584)   (2,725)  (51,309)  (1,936)   (404)   (2,340)

Balance at December
  31, 1998            466,688    21,935   488,623   11,649   2,601    14,250
Revisions of
  estimates             4,155      (106)    4,049    4,031     372     4,403
Extensions and
  discoveries          77,737     1,720    79,457      794     257     1,051
Purchase of reserves
  in place             17,020              17,020      130               130
Sale of reserves
  in place            (11,984)            (11,984)  (3,665)           (3,665)
Production            (59,839)   (2,873)  (62,712)  (1,876)   (435)   (2,311)

Balance at December
  31, 1999            493,777    20,676   514,453   11,063   2,795    13,858
Revisions of
  estimates            25,662    (7,890)   17,772      221     (64)      157
Extensions and
  discoveries         123,155     2,511   125,666    1,532     208     1,740
Purchase of reserves
  in place                846    52,000    52,846        1   1,520     1,521
Sale of reserves
  in place             (1,885)             (1,885      (17)              (17)
Production            (61,722)   (7,241   (68,963)  (1,484)   (741)   (2,225)

Balance at December
  31, 2000            579,833    60,056   639,889    11,316  3,718    15,034


Proved-Developed Reserves

Balance at January
   1, 1998            300,550    16,670   317,220    10,769  1,851   12,620
Balance at December
   31, 1998           411,826    17,835   429,661    10,443  2,281   12,724
Balance at December
   31, 1999           412,008    17,076   429,084     9,897  2,565   12,462
Balance at December
   31, 2000           434,122    55,623   489,745     9,696  3,077   12,773

Standardized Measure of Future Net Cash Flows Relating to Proved Reserves

Future net cash flows were calculated at December 31 using
year-end prices and known contract-price changes.  The year-end
prices do not include any impact of hedging activities.
Year-end production costs, development costs and appropriate
statutory income tax rates, with consideration of future tax
rates already legislated, were used to compute the future net
cash flows.  All cash flows were discounted at 10% to reflect
the time value of cash flows, without regard to the risk of
specific properties.


The assumptions used to derive the standardized measure of
future net cash flows are those required by accounting
standards and do not necessarily reflect the Company's
expectations.  The usefulness of the standardized measure of
future net cash flows is impaired because of the reliance on
reserve estimates and production schedules that are inherently
imprecise.

Year Ended December 31,                   United
                                          States     Canada      Total
                                                 (In Thousands)
2000
Future cash inflows                    $5,412,945   $568,771    $5,981,716
Future production costs                  (955,827)   (73,583)   (1,029,410)
Future development costs                 (107,355)    (2,900)     (110,255)
Future income tax expenses             (1,493,301)  (225,234)   (1,718,535)
  Future net cash flows                 2,856,462    267,054     3,123,516

10% annual discount to reflect
  timing of net cash flows             (1,314,258)  (117,637)   (1,431,895)
Standardized measure of discounted
  future net cash flows                $1,542,204   $149,417    $1,691,621

1999
Future cash inflows                    $1,332,761   $108,990    $1,441,751
Future production costs                  (398,591)   (28,280)     (426,871)
Future development costs                  (61,034)    (3,146)      (64,180)
Future income tax expenses               (183,767)   (11,656)     (195,423)
  Future net cash flows                   689,369     65,908       755,277
10% annual discount to reflect
  timing of net cash flows               (283,055)   (23,193)     (306,248)
Standardized measure of discounted
  future net cash flows                  $406,314    $42,715      $449,029

1998
Future cash inflows                      $982,404    $66,885    $1,049,289
Future production costs                  (320,355)   (22,088)     (342,443)
Future development costs                  (45,138)      (696)      (45,834)
Future income tax expenses                (74,738)                 (74,738)
  Future net cash flows                   542,173     44,101       586,274
10% annual discount to reflect
  timing of net cash flows               (216,907)   (14,809)     (231,716)
Standardized measure of discounted
  future net cash flows                  $325,26     $29,292      $354,558


The principal sources of change in the standardized measure of
discounted future net cash flows were:

                                               Year Ended December 31,
                                            2000        1999        1998
                                                   (In Thousands)

Beginning balance                        $449,029    $354,558    $301,162
    Sales of oil and gas
     produced, net of production
     costs                               (187,260)   (116,846)    (93,717)
    Net changes in prices and
      production costs                  1,636,707     170,012     (53,626)
    Extensions and discoveries,
      less related costs                  492,398      79,511      24,120
    Revisions of quantity estimates        70,155      28,665     (14,399)
    Purchase of reserves in place          33,102       3,764     129,867
    Sale of reserves in place              (1,867)    (33,043)       (540)
    Accretion of discount                  44,903      35,456      30,116
    Net change in income taxes           (804,799)    (66,293)     11,550
    Change in production rate             (50,077)     (8,859)      6,728
    Other                                   9,330       2,104      13,297
    Net change                          1,242,592      94,471      53,396
Ending balance                         $1,691,621    $449,029    $354,558

Cost-of-Service Activities

The following information is provided with respect to
cost-of-service oil and gas properties managed and developed by
Wexpro and regulated by the Wexpro settlement agreement.
Information on the standardized measure of future net cash
flows has not been included for cost-of-service activities
because the operations of and return on investment for such
properties are regulated by the Wexpro settlement agreement.

Capitalized Costs

Capitalized costs for cost-of-service oil and gas properties
net of the related accumulated depreciation and amortization
were as follows:
                                                 December 31,
                                         2000        1999        1998
                                                (In Thousands)

Proved properties                     $348,403    $318,451    $297,809
Accumulated depreciation
  and amortization                     193,029     180,867     168,236
                                      $155,374    $137,584    $129,573

Costs Incurred

Costs incurred by Wexpro for cost-of-service oil and gas
producing activities were $32,066,000 in 2000, $21,273,000 in
1999 and $26,956,000 in 1998.


Results of Operations

Following are the results of operations of the Company's
cost-of-service gas and oil development activities before
corporate overhead and interest expenses.

                                            Year Ended December 31,
                                        2000        1999        1998
                                               (In Thousands)
Revenues
From unaffiliated companies           $15,179      $8,844     $10,025
From affiliates - Note A               73,721      62,335      58,581
    Total revenues                     88,900      71,179      68,606

Production expenses                    27,861      18,548      22,439
Depreciation and amortization          13,922      12,665      11,379
    Total expenses                     41,783      31,213      33,818

Revenues less expenses                 47,117      39,966      34,788
Income taxes                           16,923      14,602      12,441
    Results of operations
    before corporate overhead
    and interest expenses             $30,194     $25,364     $22,347

Note A - Represents revenues received from Questar Gas pursuant
to Wexpro Settlement Agreement.

Estimated Quantities of Proved Oil and Gas Reserves

The following estimates were made by the Company's reservoir
engineers.  No estimates are available for cost-of-service
proved-undeveloped reserves that may exist.
                                            Natural Gas     Oil
                                              (MMcf)      (MBbl)
Proved Developed Reserves
Balance at January 1, 1998                   337,179       3,049
  Revisions of estimates                      15,017         (46)
  Extensions and discoveries                  25,077         333
  Production                                 (37,138)       (613)
Balance at December 31, 1999                 340,135       2,723
  Revisions of estimates                       5,699         976
  Extensions and discoveries                  46,739         213
  Production                                 (38,890)       (623)
Balance at December 31, 1999                 353,683       3,289
  Revisions of estimates                      16,523         504
  Extensions and discoveries                  50,351         234
  Production                                 (41,546)       (579)
Balance at December 31, 2000                 379,011       3,448


             GLOSSARY OF COMMONLY USED OIL AND GAS TERMS

"Bbl" means barrel.  One barrel is the equivalent of 42 standard
U.S. gallons.

"Bcf" means billion cubic feet, a common unit of measurement of
natural gas.

"Bcfe" means billion cubic feet of natural gas equivalents.  Oil
volumes are converted to natural gas equivalents using the ratio of
one barrel of crude oil to six thousand cubic feet of natural gas.

"Btu" means British thermal unit, measured as the amount of energy
required to raise the temperature of one pound of water one degree
Fahrenheit.

"Completion" means the completion of the processes necessary before
production of oil or natural gas occurs (e.g., perforating the
casing; installing permanent equipment in the well; or in the case
of a dry hole, the reporting of abandonment to the appropriate agency.

"Development well" means a well drilled into a known producing
formation in a previously discovered field.

"Dry hole" means a well found to be incapable of producing
hydrocarbons in sufficient quantities such that proceeds from the
sale of such production exceed production expenses and taxes.

"Dth" means decatherms or ten therms.  One decatherm equals one
million Btu.

"Exploratory well" means a well drilled into a previously untested
geologic structure to determine the presence of oil or gas.

"Gross" natural gas and oil wells or "gross" acres equals the number
of wells or acres in which we have an interest.

"MBbls" means thousand barrels.

"Mcf" means thousand cubic feet.

"Mcfe" means thousand cubic feet of natural gas equivalents.

"MDths" means thousand decatherms.

"MMBbls" means million barrels.

"MMBtu" means million British thermal units.

"MMcf" means million cubic feet.

"MMDth" means million decatherms.



"Net" gas and oil wells or "net" acres are determined by multiplying
gross wells or acres by our working interest in those wells or acres.

"NGL" means natural gas liquids.

"Proved reserves" means those quantities of natural gas and crude
oil, condensate, and natural gas liquids on a net revenue interest
basis, which geological and engineering data demonstrate with
reasonable certainty to be recoverable under existing economic and
operating conditions.  "Proved developed reserves" include proved
developed producing reserves and proved developed behind-pipe
reserves.  "Proved developed producing reserves" include only those
reserves expected to be recovered from existing completion intervals
in existing wells.  "Proved undeveloped reserves" include those
reserves expected to be recovered from new wells on proved undrilled
acreage or from existing wells where a relatively major expenditure
is required for recompletion.

"Reservoir" means a porous and permeable underground formation
containing a natural accumulation of producible natural gas and/or
oil that is confined by impermeable rock or water barriers and is
separate from other reservoirs.

"Working interest" means an interest that gives the owner the right
to drill, produce, and conduct operating activities on a property
and receive a share of any production.


                              SIGNATURES


     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized, on the 29th day of March, 2001.

                QUESTAR MARKET RESOURCES, INC.
                   (Registrant)


                By  /s/ G. L. Nordloh
                        G. L. Nordloh
                        President & Chief Executive Officer


     Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the date
indicated.


 /s/ G. L. Nordloh            President & Chief Executive Officer;
G. L. Nordloh                 Director (Principal Executive Officer)


 /s/ S. E. Parks              Vice President, Treasurer and Chief
S. E. Parks                   Financial Officer (Principal
                              Financial Officer)


 /s/B. Kurtis Watts           Manager, Accounting
B. Kurtis Watts               (Principal Accounting Officer)

*R. D. Cash                   Chairman of the Board; Director
*Teresa Beck                  Director
*Patrick J. Early             Director
*William N. Jones             Director
*G. L. Nordloh                Director
*Keith O. Rattie              Director



March 29, 2001                *By  /s/ G. L. Nordloh
    Date                               G. L. Nordloh, Attorney in Fact


                            EXHIBIT INDEX

Exhibit
Number   Description

 3.1.*   Articles of Incorporation dated April 27, 1988 for Utah
         Entrada Industries, Inc.  (Exhibit No. 3.1. to the
         Company's Form 10 dated April 12, 2000.)

 3.2.*   Articles of Merger, dated May 20, 1988, of
         Entrada Industries, Inc., a Delaware
         corporation and Utah Entrada Industries, Inc,
         a Utah corporation.  (Exhibit No. 3.2. to the
         Company's Form 10 dated April 12, 2000.)

 3.3.*   Articles of Amendment dated August 31, 1998,
         changing the name of Entrada Industries, Inc.
         to Questar Market Resources, Inc.  (Exhibit
         No. 3.3. to the Company's Form 10 dated April
         12, 2000.)

 3.4.*   Bylaws (as amended effective February 8,
         2000.)  (Exhibit No. 3.4. to the Company's
         Form 10 dated April 12, 2000.)

 4.1.*   Indenture dated as of March 1, 2001, between the Questar
         Market Resources, Inc. and Bank One, NA, as Trustee for
         the Company's 71/2% Notes due 2011.  (Exhibit No. 4.01. to
         the Company's Current Report on Form 8-K dated March 6,
         2001.)

 4.2.*   Form of 71/2% Notes due 2011.  (Exhibit No. 4.02. to the
         Company's Current Report on Form 8-K dated March 6, 2001.)

 4.3.    U.S. Credit Agreement, dated April 19, 1999,
         by and among Questar Market Resources, Inc.,
         as U.S. borrower, NationsBank, N.A., as U.S.
         agent, and certain financial institutions, as
         lenders, with the First Amendment dated May
         17, 1999,  the Second Amendment dated July 30,
         1999, the Third Amendment dated November 30,
         1999, the Fourth Amendment dated April 17,
         2000, the Fifth Amendment dated October 6,
         2000, and the Sixth Amendment dated February
         9, 2001.  (Exhibit No. 4.1. to the Company's
         Form 10 dated April 12, 2000, for the U. S.
         Credit Agreement, and the First, Second and
         Third Amendments; Exhibit No. 4.1. to the
         Company's Form 10/A dated November 9, 2000,
         for the Fourth and Fifth Amendments.)  The
         Sixth Amendment is filed with this Report.1

 4.4.    Long-term debt instruments with principal amounts not
         exceeding 10 percent of QMR's total consolidated assets
         are not filed as exhibits.  The Company will furnish a
         copy of these agreements to the Commission upon request.

 10.1.*  Stipulation and Agreement, dated October 14, 1981,
         executed by Mountain Fuel Supply Company [Questar Gas
         Company]; Wexpro Company; the Utah Department of Business
         Regulations, Division of Public Utilities; the Utah
         Committee of Consumer Services; and the staff of the
         Public Service Commission of Wyoming.  (Exhibit No. 10(a)
         to Questar Gas Company's Form 10-K Annual Report for 1981.)

 21.     Subsidiary Information.

 24.     Power of Attorney
________________________

 *Exhibits so marked have been filed with the Securities and
Exchange Commission as part of the indicated filing and are
incorporated herein by reference.

      1Exhibit so marked is management contract or compensation plan
or arrangement.


EXHIBIT 4.3

                SIXTH AMENDMENT TO US CREDIT AGREEMENT


       THIS SIXTH AMENDMENT TO US CREDIT AGREEMENT (herein called
the "Amendment") made as of February 9, 2001, by and among Questar
Market Resources, Inc., a Utah corporation ("US Borrower"), Bank of
America, N.A., individually and as administrative agent for the
Lenders as defined below ("US Agent"), and the undersigned Lenders.

                         W I T N E S S E T H:

       WHEREAS, US Borrower, US Agent and the lenders as signatories
thereto (the "Lenders") entered into that certain US Credit
Agreement dated as of April 19, 1999, as amended by that certain
First Amendment to US Credit Agreement dated as of May 17, 1999, as
amended by that certain Second Amendment to US Credit Agreement
dated as of July 30, 1999, as amended by that certain Third
Amendment to US Credit Agreement dated as of November 30, 1999, as
amended by that certain Fourth Amendment to US Credit Agreement
dated as of April 17, 2000, and as amended by that certain Fifth
Amendment to US Credit Agreement dated as of October 6, 2000 (the
"Original Agreement"), for the purpose and consideration therein
expressed, whereby the Lenders became obligated to make loans to US
Borrower as therein provided; and

       WHEREAS, US Borrower, US Agent and the undersigned Lenders
desire to amend the Original Agreement for the purposes as provided
herein;

       NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements contained herein and in the Original
Agreement, in consideration of the loans which may hereafter be made
by Lenders to US Borrower, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:


                              ARTICLE I.

                      Definitions and References

       Section 1.1.   Terms Defined in the Original Agreement.
Unless the context otherwise requires or unless otherwise expressly
defined herein, the terms defined in the Original Agreement shall
have the same meanings whenever used in this Amendment.

       Section 1.2.   Other Defined Terms.  Unless the context
otherwise requires, the following terms when used in this Amendment
shall have the meanings assigned to them in this Section 1.2.

        "Amendment" means this Sixth Amendment to US Credit Agreement.

        "US Credit Agreement" means the Original Agreement as
amended hereby.


                             ARTICLE II.

                   Amendments to Original Agreement

       Section 2.1.   Addition of Defined Term to Annex I.  The
following definition of "FAS 133" is hereby added to Annex I of the
Original Agreement to read as follows:

        "'FAS 133' means the Financial Accounting Standard's Board
Statement No. 133, as amended by Statement No. 137 and Statement No.
138."

       Section 2.2.   Amendment to Annex I.  The following
definitions set forth in Annex I to the Original Agreement are
hereby amended in their entirety to read as follows:

        "'Permitted Liens' means:

        (a)    operators' liens under customary operating
agreements, statutory Liens for taxes, statutory mechanics' and
materialmen's Liens, and other similar statutory Liens, provided
such Liens secure only Liabilities which are not delinquent or which
are being contested as provided in Section 6.7 of the US Agreement
or Section 6.7 of the Canadian Agreement;

        (b)    Liens on any oil and gas properties which neither
have developed reserves (producing or non-producing) properly
attributable thereto nor are otherwise held under lease by
production of other reserves;

        (c)    Liens on the Restricted Persons' office facilities;

        (d)    Liens on property securing non-recourse debt
permitted under Section 7.1(f) of the US Agreement and Section
7.1(f) of the Canadian Agreement which is acquired with proceeds or
developed with proceeds of the non-recourse debt;

        (e)    Liens on cash or cash equivalents and letters of
credit permitted under Section 7.10(i)(b) of the US Agreement and
Section 7.10(i)(b) of the Canadian Agreement;

               (f)    Liens to secure the Obligations;

       provided that nothing in this definition shall in and of
       itself constitute or be deemed to constitute an agreement or
       acknowledgment by the US Agent or the Canadian Agent or any
       Lender that the Indebtedness subject to or secured by any
       such Permitted Lien ranks (apart from the effect of any Lien
       included in or inherent in any such Permitted Liens) in
       priority to the Obligations."

        "'Shareholders' Equity' means the remainder of (i) US
Borrower's Consolidated assets minus (ii) the sum of (x) US
Borrower's Consolidated liabilities (such assets and liabilities to
be calculated excluding unrealized noncash gains or losses resulting
from "mark-to-market" adjustments pursuant to FAS 133) plus (y) all
treasury stock of US Borrower and its Subsidiaries."

        "'Consolidated Net Worth' means as to US Borrower and its
properly Consolidated subsidiaries at any time, the remainder of all
Consolidated assets of US Borrower and such subsidiaries which would
be shown on their Consolidated balance sheet prepared as of such
time in accordance with GAAP, minus the sum of (a) all amounts which
would be shown on such balance sheet as minority interests in any
such subsidiaries, plus (b) all Consolidated Liabilities of US
Borrower and such subsidiaries which would be shown on such balance
sheet, adjusted by treating as Liabilities rather than equity all
capital stock and other equity securities which US Borrower or any
such subsidiary would be required to purchase, redeem or otherwise
acquire at the election of any holder thereof, upon the passage of
time, or upon the occurrence of any contingency (other than the
voluntary election of US Borrower or any such subsidiary to make
such purchase, redemption or acquisition) and excluding unrealized
noncash gains or losses resulting from "mark-to-market" adjustments
pursuant to FAS 133."

       Section 2.3.   Hedging Contracts.  Section 7.10(i)(B) of the
Original Agreement is hereby amended in its entirety to read as
follows:

        "(B)   such contracts do not require any Restricted Person
to provide any Lien or letter of credit to secure the Restricted
Persons' obligations thereunder, other than Liens on cash or cash
equivalents and letters of credit; provided that the aggregate
amount of cash and cash equivalents subject to Liens securing such
contracts and the undrawn amount of all letters of credit  securing
such contracts shall not exceed (i) US $60,000,000 at any time,
through and including April 1, 2001 and (ii) US $30,000,000 at any
time thereafter."


                             ARTICLE III.

                                Waiver

       Section 3.1.   Waiver.  US Borrower has informed US Agent
that US Borrower and Restricted Persons may have violated the
provisions of Section 7.10(i) of the Original Agreement for the
Fiscal Quarter ended December 31, 2000 and for the Fiscal Year ended
December 31, 2000.  US Agent and the undersigned Lenders hereby (a)
waive any such violation of Section 7.10(i) for such Fiscal Quarter
and such Fiscal Year, and (b) waive any Default or Event of Default
resulting from such violation.


                             ARTICLE IV.

                     Conditions of Effectiveness

       Section 4.1.   Effective Date.  This Amendment shall become
effective as of the date first above written when, and only when, US
Agent shall have received, at US Agent's office:

        (i)    a counterpart of this Amendment executed and
delivered by US Borrower and Required Lenders;

        (ii)   a certificate of the Secretary or Assistant Secretary
and of the President, Chief Financial Officer or Vice President of
Administrative Services of US Borrower dated the date of this
Amendment certifying: (a) that resolutions adopted in connection
with the Original Agreement by the Board of Directors of the US
Borrower authorize the execution, delivery and performance of this
Amendment by US Borrower, (b) to the names and true signatures of
the officers of the US Borrower authorized to sign this Amendment,
and (c) that all of the representations and warranties set forth in
Article V hereof are true and correct at and as of the time of such
effectiveness; and

        (iii)  all fees and reimbursements to be paid to US Agent
pursuant to any US Loan Documents, or otherwise due US Agent,
including fees and disbursements of US Agent's attorneys.


                              ARTICLE V.

                    Representations and Warranties

       Section 5.1.   Representations and Warranties of Borrower.
In order to induce US Agent and Lenders to enter into this
Amendment, US Borrower represents and warrants to US Agent that:

        (a)    The representations and warranties contained in
               Article V of the Original Agreement are true and
               correct at and as of the time of the effectiveness
               hereof.

        (b)    US Borrower has duly taken all action
               necessary to authorize the execution and
               delivery by it of this Amendment and to
               authorize the consummation of the transactions
               contemplated hereby and the performance of its
               obligations hereunder.  US Borrower is duly
               authorized to borrow funds under the US Credit
               Agreement.

        (c)    The execution and delivery by US Borrower of this
               Amendment, the performance by US Borrower of its
               obligations hereunder and the consummation of the
               transactions contemplated herein do not and will not
               (a) conflict with any provision of (i) any Law, (ii)
               the organizational documents of US Borrower, or (iii)
               any agreement, judgment, license, order or permit
               applicable to or binding upon US Borrower, or (b)
               result in the acceleration of any Indebtedness owed
               by US Borrower, or (c) result in or require the
               creation of any Lien upon any assets or properties of
               US Borrower, except as expressly contemplated or
               permitted in the Loan Documents.  Except as expressly
               contemplated in the Loan Documents no consent,
               approval, authorization or order of, and no notice to
               or filing with any Tribunal or third party is
               required in connection with the execution, delivery
               or performance by US Borrower of this Amendment or to
               consummate any transactions contemplated herein.

        (d)    This Amendment is a legal, valid and binding
               obligation of US Borrower, enforceable in accordance
               with its terms, except as such enforcement may be
               limited by bankruptcy, insolvency or similar Laws of
               general application relating to the enforcement of
               creditors' rights and by equitable principles of
               general application relating to the enforcement of
               creditor's rights.


                             ARTICLE VI.

                            Miscellaneous

       Section 6.1.   Ratification of Agreements.  The Original
Agreement as hereby amended is hereby ratified and confirmed in all
respects.  The US Loan Documents, as they may be amended or affected
by this Amendment, are hereby ratified and confirmed in all
respects. Any reference to the US Credit Agreement in any Loan
Document shall be deemed to be a reference to the Original Agreement
as hereby amended.  The execution, delivery and effectiveness of
this Amendment shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of Lenders under
the US Credit Agreement, the US Notes, or any other US Loan Document
nor constitute a waiver of any provision of the US Credit Agreement,
the US Notes or any other US Loan Document.

       Section 6.2.   Survival of Agreements; Cumulative Nature.
All of US Borrower's various representations, warranties, covenants
and agreements herein shall survive the execution and delivery of
this Amendment and the performance hereof, including without
limitation the making or granting of the US Loans, and shall further
survive until all of the US Obligations are paid in full to each
Lender Party and all of Lender Parties' obligations to US Borrower
are terminated.  All statements and agreements contained in any
certificate or instrument delivered by any Restricted Person
hereunder or under the US Credit Agreement to any Lender Party shall
be deemed representations and warranties by US Borrower or
agreements and covenants of US Borrower under this Amendment and
under the US Credit Agreement.  The representations, warranties,
indemnities, and covenants made by Restricted Persons in the US Loan
Documents, and the rights, powers, and privileges granted to Lender
Parties in the US Loan Documents, are cumulative, and, except for
expressly specified waivers and consents, no Loan Document shall be
construed in the context of another to diminish, nullify, or
otherwise reduce the benefit to any Lender Party of any such
representation, warranty, indemnity, covenant, right, power or
privilege.  In particular and without limitation, no exception set
out in this Amendment to any representation, warranty, indemnity, or
covenant herein contained shall apply to any similar representation,
warranty, indemnity, or covenant contained in any other Loan
Document, and each such similar representation, warranty, indemnity,
or covenant shall be subject only to those exceptions which are
expressly made applicable to it by the terms of the various US Loan
Documents.

       Section 6.3.   Loan Documents.  This Amendment is a US Loan
Document, and all provisions in the US Credit Agreement pertaining
to US Loan Documents apply hereto.

       Section 6.4.   Governing Law.  This Amendment shall be
governed by and construed in accordance the laws of the State of
Utah and any applicable laws of the United States of America in all
respects, including construction, validity and performance.  US
Borrower hereby irrevocably submits itself and each other Restricted
Person to the non-exclusive jurisdiction of the state and federal
courts sitting in the State of Utah and agrees and consents that
service of process may be made upon it or any Restricted Person in
any legal proceeding relating to the Amendment Documents or the
Obligations by any means allowed under Utah or federal law.

       Section 6.5.   Counterparts.  This Amendment may be
separately executed in any number of counterparts and by the
different parties hereto in separate counterparts, each of which
when so executed shall be deemed to constitute one and the same
Amendment.  This Amendment may be validly executed and delivered by
facsimile or other electronic transmission.

       THIS AMENDMENT AND THE OTHER US LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.


   [The remainder of this page has been intentionally left blank.]

       IN WITNESS WHEREOF, this Amendment is executed as of the date
first above written.


                              QUESTAR MARKET RESOURCES, INC.
                              US Borrower



                              By:    /s/ G. L. Nordloh
                                     G. L. Nordloh
                                     President and Chief Executive
                                     Officer

                                     Mailing Address:
                                     P.O. Box 45433
                                     Salt Lake City,
                                     Utah  84145
                                     Attention:  Martin H. Craven

                                     Street Address:
                                     180 East 100 South
                                     Salt Lake City, Utah  84111
                                     Telephone: (801)
                                     324-5497
                                     Fax: (801) 324-5483

                                     BANK OF AMERICA, N.A.
                                     Administrative Agent,
                                     US LC Issuer and Lender



                                     By:
                                     Name:
                                     Title:



                                     TORONTO DOMINION (TEXAS), INC.
                                     Lender



                                     By:
                                     Name:
                                     Title:

                                     BANK OF MONTREAL
                                     Lender



                                     By:
                                     James Whitmore
                                     Director

                                     BANK ONE, NA (MAIN OFFICE CHICAGO)
                                     Lender



                                     By:
                                     Name:
                                     Title:

                                     FIRST SECURITY BANK, N.A.
                                     Lender



                                     By:
                                     Name:
                                     Title:


                                     MELLON BANK, N.A.
                                     Lender



                                     By:
                                     Roger E. Howard
                                     Vice President



                                     U.S. BANK NATIONAL ASSOCIATION
                                     Lender



                                     By:
                                     Mark E. Thompson
                                     Vice President


                                     THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                     HOUSTON AGENCY
                                     Lender



                                     By:
                                     Name:
                                     Title:

                                     THE INDUSTRIAL BANK OF JAPAN, LIMITED
                                     Lender



                                     By:
                                     Name:
                                     Title:



                                     THE SUMITOMO BANK, LIMITED
                                     Lender



                                     By:
                                     Name:
                                     Title:

EXHIBIT 21

                      SUBSIDIARY INFORMATION

     Registrant Questar Market Resources, Inc., has the following
subsidiaries:  Wexpro Company, Questar Exploration and Production
Company, Questar Energy Trading Company, and Questar Gas Management
Company.  Questar Exploration and Production is a Texas corporation.
 The other listed companies are incorporated in Utah.

     Questar Exploration and Production has a wholly owned
subsidiary, Celsius Energy Resources, Ltd., which is an Alberta
corporation.  Celsius, Ltd., in turn, has a subsidiary, Canor Energy
Ltd., which is also an Alberta corporation.

     Questar Exploration and Production has one domestic active
subsidiary:  Questar URC Company, which is a Delaware corporation.
Questar Exploration and Production also does business under the
names Universal Resources Corporation, Questar Energy Company and
URC Corporation.

     Questar Energy Trading Company has one active subsidiary, URC
Canyon Creek Compression Company, which is a Utah corporation.


EXHIBIT 24
                          POWER OF ATTORNEY


     We, the undersigned directors of Questar Market Resources, Inc.,
hereby severally constitute G. L. Nordloh and S. E. Parks, and each
of them acting alone, our true and lawful attorneys, with full power
to them and each of them to sign for us, and in our names in the
capacities indicated below, the Annual Report on Form 10-K for 2000
and any and all amendments to be filed with the Securities and
Exchange Commission by Questar Market Resources, Inc., hereby
ratifying and confirming our signatures as they may be signed by the
attorneys appointed herein to the Annual Report on Form 10-K for
2000 and any and all amendments to such Report.

     Witness our hands on the respective dates set forth below.

     Signature                      Title            Date



/s/ R. D. Cash           Chairman of the Board      3/27/01
R. D. Cash



/s/ K. O. Rattie         Vice Chairman              3/27/01
K. O. Rattie



/s/ G. L. Nordloh        President & Chief          3/27/01
G. L. Nordloh            Executive Officer
                              Director


/s/ T. Beck                   Director              3/27/01
T. Beck



/s/ P. J. Early               Director              3/27/01
P. J. Early



/s/ W. N. Jones               Director              3/27/01
William N. Jones