Questar Communications Director Chad Jones said Thursday the company will not comment on the government's claims while the lawsuit is pending. However, in a filing Wednesday with the U.S. Securities Exchange Commission, Questar told investors that it has the resources on-hand to pay any fines that could be levied against the company if it were to lose the case.

"(Questar) Gas Management contends that its facilities have controls installed which reduce their actual air emissions below major source thresholds, rendering them subject to different regulatory requirements," the company's SEC filing says. "Gas Management intends to vigorously defend against the EPA's claims."

The federal complaint acknowledged that while the compressor stations had emissions control systems in place, those systems failed or were not in operation at times, allowing the release of toxic gases. Prosecutors claim that Questar failed to notify the EPA when malfunctions occurred or when the systems were turned off.

Questar faces possible fines of $27,000 per day for each alleged violation that occurred before March 15, 2004, and $32,500 per day for each alleged violation after that date. The company has until May 5 to file a response to the lawsuit.

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