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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font><font size=2> </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=5>FORM 10-Q</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font face=Wingdings>x</font><font size=2>  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>THE SECURITIES EXCHANGE ACT OF 1934</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>For the quarterly period ended September 30, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OR</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2><font face=Wingdings>o</font>  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>THE SECURITIES EXCHANGE ACT OF 1934</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>For the transition period from ___  to ___.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Commission file number:  1-14323</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=5>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of Registrant as Specified in Its Charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Delaware</font></b></p>  </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>76-0568219</font></b></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(State or Other Jurisdiction of</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(I.R.S. Employer Identification No.)</font></p> </td> </tr>
    <tr style='height:5.75pt'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Incorporation or Organization)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p   ><font size=1>&nbsp;</font></p>  </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1100 Louisiana, 10th Floor </font></b></p>  </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Houston, Texas  77002</font></b></p> </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Address of Principal Executive Offices, Including Zip Code)</font></p> </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(713) 381-6500</font></b></p> </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Registrant&#146;s Telephone Number, Including Area Code)  </font></p> </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="110" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="98" ></td>

        <td width="199" ></td>

        <td width="187" ></td>

        <td width="110" ></td> </tr> </table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>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.  </font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Yes </font><font face=Wingdings>x</font><font size=2>   No <font face=Wingdings>o</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Large accelerated filer </font><font face=Wingdings>x</font><font size=2>                               Accelerated filer [   ]                  Non-accelerated filer   [   ]</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Yes <font face=Wingdings>o</font>   No </font><font face=Wingdings>x</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>There were 434,736,708 common units of Enterprise Products Partners L.P. outstanding at November 1, 2007.  These common units trade on the New York Stock Exchange under the ticker symbol &#147;EPD.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>TABLE OF CONTENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Page No.</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PART I.  FINANCIAL INFORMATION.</font></B></p>  </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financial Statements.</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unaudited Condensed Consolidated Balance Sheets</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unaudited Condensed Statements of Consolidated Operations </font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unaudited Condensed Statements of Consolidated Comprehensive Income</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4</font></p> </td> </tr>
    <tr style='height:10.1pt'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unaudited Condensed Statements of Consolidated Cash Flows</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unaudited Condensed Statements of Consolidated Partners&#146; Equity</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notes to Unaudited Condensed Consolidated Financial Statements:</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.  Partnership Organization </font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.  General Accounting Policies and Related Matters </font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>8</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.  Accounting for Unit-Based Awards</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>11</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.  Financial Instruments</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>14</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.  Inventories</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>16</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.  Property, Plant and Equipment</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>17</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.  Investments in and Advances to Unconsolidated Affiliates</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.  Intangible Assets and Goodwill</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>21</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.  Debt Obligations</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>22</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.  Partners&#146; Equity and Distributions</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>26</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.  Business Segments</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>29</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.  Related Party Transactions</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>32</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.  Earnings Per Unit</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>36</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.  Commitments and Contingencies</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>38</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15.  Significant Risks and Uncertainties &#150; Weather-Related Risks</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>40</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16.  Supplemental Cash Flow Information</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>41</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>17.  Condensed Financial Information of EPO</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>42</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:13.15pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18.  Subsequent Event</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>43</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 2.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Management&#146;s Discussion and Analysis of Financial Condition</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>and Results of Operations.</font></b><font size=2> </font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>44</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 3.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Quantitative and Qualitative Disclosures about Market Risk. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>64</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 4.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Controls and Procedures. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>67</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PART II.  OTHER INFORMATION.</font></B></p>  </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Legal Proceedings. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>67</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1A.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Risk Factors.</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>67</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 2.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Unregistered Sales of Equity Securities and Use of Proceeds. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>68</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 3.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Defaults upon Senior Securities. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>68</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 4.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Submission of Matters to a Vote of Security Holders. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>68</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 5.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Information. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>68</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 6.</font></b></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Exhibits. </font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>68</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="74" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Signatures</font></b><font size=2>  </font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>72</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PART I.  FINANCIAL INFORMATION.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 1.  </font></b><i><b><font size=2>Financial Statements</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2> (Dollars in thousands)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="605" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="225" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="136" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30,</font></b></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>December 31,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ASSETS</font></B></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Current assets:</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and cash equivalents  </font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43,881</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,619</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Restricted cash</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>63,910</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,667</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts and notes receivable - trade, net of allowance for doubtful accounts </font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of $21,994 at September 30, 2007 and $23,406 at December 31, 2006 </font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,532,658</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,306,290</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts receivable - related parties</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>57,540</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,738</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Inventories</font></p> </td>
        <td width="136" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>509,888</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>423,844</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Prepaid and other current assets</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>167,960</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>129,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total current assets</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,375,837</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,922,158</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Property, plant and equipment, net</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,133,395</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,832,547</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investments in and advances to unconsolidated affiliates</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>854,825</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>564,559</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intangible assets, net of accumulated amortization of $319,061 at </font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30, 2007 and $251,876 at December 31, 2006 </font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>928,201</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,003,955</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Goodwill</font></b></p> </td>
        <td width="136" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>591,644</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>590,541</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Deferred tax asset</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,453</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,855</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other assets</font></b></p> </td>
        <td width="136" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>119,650</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>74,103</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="225" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total assets</font></p> </td>
        <td width="136" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;16,006,005</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;13,989,718</font></p> </td> </tr>
    <tr style='height:4.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:4.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:4.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:4.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="225" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:4.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="136" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:4.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:4.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:4.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>LIABILITIES AND PARTNERS&#146; EQUITY</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Current liabilities:</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts payable &#150; trade</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;326,306</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;277,070</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts payable &#150; related parties</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,038</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,785</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued product payables</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,719,001</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,364,493</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued expenses</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>48,891</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35,763</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued interest</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100,885</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>90,865</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other current liabilities</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>259,882</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>209,945</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total current liabilities</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,476,003</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,984,921</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Long-term debt: </font></b><font size=2>(see Note 9)</font><b><font size=2> </font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt ;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior debt obligations &#150; principal</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,546,568</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,779,068</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Junior subordinated notes &#150; principal</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,250,000</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>550,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(24,580)</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(33,478)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:47.45pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total long-term debt</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,771,988</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,295,590</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Deferred tax liabilities</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,966</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,723</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other long-term liabilities</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>85,388</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>86,121</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Minority interest</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>430,800</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:32.5pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>129,130</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Commitments and contingencies</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Partners&#146; equity:</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Limited partners</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Common units (433,062,984 units outstanding at September 30, 2007 </font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>and 431,303,193 units outstanding at December 31, 2006)</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,044,028</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:21.1pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,320,577</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Restricted common units (1,673,724 units outstanding at September 30, 2007</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>and 1,105,237 units outstanding at December 31, 2006)</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,536</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:32.5pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,340</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>General partner</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>123,965</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:28.1pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>129,175</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accumulated other comprehensive income</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>43,331</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:32.5pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,141</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total partners&#146; equity</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,224,860</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,480,233</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="225" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total liabilities and partners&#146; equity</font></p> </td>
        <td width="136" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;16,006,005</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;13,989,718</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Unaudited Condensed Consolidated Financial Statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Dollars in thousands, except per unit amounts)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="80" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Revenues:</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:11.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Third parties</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;3,933,157</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;3,740,162</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;11,268,342</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;10,304,580</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Related parties</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>178,839</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>132,363</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>379,314</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>335,872</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:20.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total (see Note 11)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,111,996</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,872,525</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,647,656</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,640,452</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Costs and expenses:</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating costs and expenses:</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:11.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Third parties</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,815,087</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,501,690</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,730,670</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,691,486</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Related parties</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>81,324</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>83,093</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>250,892</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>263,745</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:20.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total operating costs and expenses</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,896,411</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,584,783</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,981,562</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,955,231</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>General and administrative costs:</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:11.4pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Third parties</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,211</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,095</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,414</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,232</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Related parties</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,504</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,728</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,292</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>32,566</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:20.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total general and administrative costs</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18,715</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15,823</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>66,706</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,798</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:20.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total costs and expenses</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,915,126</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,600,606</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,048,268</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,001,029</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Equity in income of unconsolidated affiliates</font></b></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,960</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,265</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,928</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14,306</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Operating income</font></b></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>210,830</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>274,184</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>613,316</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>653,729</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other income (expense):</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest expense</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(85,075)</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(62,793)</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(219,708)</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(177,203)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest income</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,300</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,112</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,743</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,228</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other, net</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(594)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>24</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(362)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,270</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:23.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other expense</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(83,369)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(60,657)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(213,327)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(169,705)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Income before provision for income taxes,</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>minority interest and the cumulative effect of</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>change in accounting principle</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>127,461</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>213,527</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>399,989</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>484,024</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Provision for income taxes</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,073)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,285)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(9,001)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(12,449)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Income before minority interest and the cumulative</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:9.65pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>effect of change in accounting principle</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>125,388</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>210,242</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>390,988</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>451,575</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Minority interest</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(7,782)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,940)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(19,183)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(4,676)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Income before the cumulative effect of change in</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:9.65pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>accounting principle</font></b></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>117,606</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>208,302</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>371,805</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>466,899</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350"  valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cumulative effect of change in </font></p> </td>
        <td width="80" valign=bottom style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350"  valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:14.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>accounting principle (see Note 2)</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,475</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net income </font></b></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;117,606</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;208,302</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;371,805</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;468,374</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net income allocation: </font></b><font size=2>(see Note 13)</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Limited partners&#146; interest in net income </font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,408</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;182,198</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;286,984</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;397,759</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>General partner interest in net income </font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,198</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,104</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84,821</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70,615</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Earning per unit: </font></b><font size=2>(see Note 13)</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic and diluted income per unit </font></p>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>before change in accounting principle </font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.20</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.43</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.66</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.97</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic and diluted income per unit</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.20</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.43</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.66</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.97</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Unaudited Condensed Consolidated Financial Statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>COMPREHENSIVE INCOME</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Dollars in thousands)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse; '>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="83" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net income</font></b></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;117,606</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;208,302</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;371,805</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;468,374</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other comprehensive income:</font></b></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash flow hedges:</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net commodity financial instrument gains (losses) </font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(22,292)</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,580</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(21,446)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,880</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Foreign currency hedge gains</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,879</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,879</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest rate financial instrument gains (losses) </font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>373</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,638)</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>40,637</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Less:  Amortization of cash flow financing hedges</font></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,096)</font></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,065)</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,365)</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,158)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:27.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total cash flow hedges</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(20,136)</font></p> </td>
        <td width="83" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,877</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18,705</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,722</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Foreign currency translation adjustment</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,832</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,381</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:27.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total other comprehensive income</font></p> </td>
        <td width="84" valign=top style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(18,304)</font></p> </td>
        <td width="83" nowrap valign=bottom style=' border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,877</font></p> </td>
        <td width="88" valign=top style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,086</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,722</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="350" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Comprehensive income</font></b></p> </td>
        <td width="84" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,302</font></p> </td>
        <td width="83" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;218,179</font></p> </td>
        <td width="88" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;392,891</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;470,096</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Unaudited Condensed Consolidated Financial Statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2> (Dollars in thousands)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="591" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="18" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="78" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Operating activities:</font></b></p> </td>
        <td width="84" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;371,805</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;468,374</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Adjustments to reconcile net income to net cash </font></i></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:14.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>flows provided by operating activities:</font></i></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Depreciation, amortization and accretion in operating costs and expenses</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>374,522</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>325,180</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Depreciation and amortization in general and administrative costs</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,129</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,482</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amortization in interest expense</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>432</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>641</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Equity in income of unconsolidated affiliates</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(13,928)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(14,306)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Distributions received from unconsolidated affiliates</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>52,343</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27,085</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cumulative effect of change in accounting principle</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,475)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating lease expense paid by EPCO, Inc.</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,579</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,582</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Minority interest</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19,183</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,676</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loss (gain) on sale of assets</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,445</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,401)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deferred income tax expense</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,542</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,378</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Changes in fair market value of financial instruments </font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,511</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(41)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="411" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net effect of changes in operating accounts (see Note 16)</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>110,272</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>159,849</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:23.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net cash flows provided by operating activities </font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>937,835</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>986,024</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investing activities:</font></b></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Capital expenditures</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,684,455)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,040,341)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Contributions in aid of construction costs</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>52,462</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>63,670</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from sale of assets</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,933</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,043</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Increase in restricted cash</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(79,535)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(6,203)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash used for business combinations </font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(785)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(144,973)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments in unconsolidated affiliates</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(318,491)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(100,312)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Advances from (to) unconsolidated affiliates</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(10,624)</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,878</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:22.85pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash used in investing activities </font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,039,495)</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,217,238)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financing activities:</font></b></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrowings under debt agreements</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,926,858</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,648,285</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Repayments of debt</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,459,881)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,587,000)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Debt issuance costs</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(15,281)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Distributions paid to partners</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(711,739)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(616,261)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Distributions paid to minority interests</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(20,485)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(4,643)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" nowrap valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net proceeds from initial public offering of Duncan Energy Partners reflected</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>as a contribution from minority interests (see Notes 1 and 2)</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>290,466</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other contributions from minority interests</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,506</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,091</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Settlement of treasury lock contracts</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>48,895</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Repurchase of restricted units and options</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,568)</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net proceeds from issuance of our common units</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>52,804</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>843,044</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:22.85pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash provided by financing activities </font></p> </td>
        <td width="84" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,122,575</font></p> </td>
        <td width="78" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>306,516</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Effect of exchange rate changes on cash flows</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>347</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net change in cash and cash equivalents</font></b></p> </td>
        <td width="84" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20,915</font></p> </td>
        <td width="78" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>75,302</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cash and cash equivalents, January 1</font></b></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>22,619</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>42,098</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cash and cash equivalents, September 30</font></b></p> </td>
        <td width="84" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43,881</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;117,400</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Unaudited Condensed Consolidated Financial Statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED PARTNERS&#146; EQUITY </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(See Note 10 for Unit History and Detail of Changes in Limited Partners&#146; Equity)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Dollars in thousands)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="581" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Limited </font></b></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>General </font></b></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Partners </font></b></p> </td>
        <td width="81" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Partner </font></b></p> </td>
        <td width="77" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=1>AOCI</font></B></p> </td>
        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total </font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Balance, December 31, 2006</font></b></p> </td>
        <td width="80" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,329,917</font></p> </td>
        <td width="81" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;129,175</font></p> </td>
        <td width="77" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;21,141</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,480,233</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net income</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>286,984</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>84,821</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>371,805</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating leases paid by EPCO, Inc.</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,548</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>31</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,579</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cash distributions to partners</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(617,260)</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(91,567)</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(708,827)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net proceeds from sales of common units</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>44,089</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,210</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>45,299</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Proceeds from exercise of unit options</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,451</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>213</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,664</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Repurchase of restricted units and options</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,568)</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,568)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Unit option reimbursements to EPCO, Inc.</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(2,859)</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(58)</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(2,917)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Change in funded status of pension and </font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>postretirement plans, net of tax </font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,104</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,104</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Amortization of equity awards</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,262</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>140</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,402</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Foreign currency translation adjustment</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,381</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,381</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cash flow hedges</font></p> </td>
        <td width="80" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="81" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="77" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>18,705</font></p> </td>
        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>18,705</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Balance, September 30, 2007</font></b></p> </td>
        <td width="80" nowrap style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,057,564</font></p> </td>
        <td width="81" nowrap style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;123,965</font></p> </td>
        <td width="77" nowrap style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;43,331</font></p> </td>
        <td width="76" style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,224,860</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See Notes to Unaudited Condensed Consolidated Financial Statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 1.  Partnership Organization</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Partnership Organization</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Enterprise Products Partners L.P. is a publicly traded Delaware limited partnership, the common units of which are listed on the New York Stock Exchange (&#147;NYSE&#148;) under the ticker symbol &#147;EPD.&#148;  Unless the context requires otherwise, references to &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; or &#147;Enterprise Products Partners&#148; are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We were formed in April 1998 to own and operate certain natural gas liquids (&#147;NGLs&#148;) related businesses of EPCO, Inc. (&#147;EPCO&#148;).  We conduct substantially all of our business through our wholly owned subsidiary, Enterprise Products Operating LLC (&#147;EPO&#148;), as successor in interest by merger to Enterprise Products Operating L.P.  We are owned 98% by our limited partners and 2% by Enterprise Products GP, LLC (our general partner, referred to as &#147;Enterprise Products GP&#148;).  Enterprise Products GP is owned 100% by Enterprise GP Holdings L.P. (&#147;Enterprise GP Holdings&#148;), a publicly traded affiliate, the units of which are listed on the NYSE under the ticker symbol &#147;EPE.&#148;  The general partner of Enterprise GP Holdings is EPE Holdings, LLC (&#147;EPE Holdings&#148;), a wholly owned subsidiary of Dan Duncan LLC, the membership interests of
which are owned by Dan L. Duncan.  We, Enterprise Products GP, Enterprise GP Holdings, EPE Holdings and Dan Duncan LLC are affiliates under the common control of Dan L. Duncan, the Chairman and controlling shareholder of EPCO.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>References to &#147;TEPPCO&#148; mean TEPPCO Partners, L.P., a publicly traded affiliate, the units of which are listed on the NYSE under the ticker symbol &#147;TPP.&#148;  References to &#147;TEPPCO GP&#148; refer to Texas Eastern Products Pipeline Company, LLC, which is the general partner of TEPPCO and is wholly owned by Enterprise GP Holdings.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>References to &#147;Energy Transfer Equity&#148; mean the business and operations of Energy Transfer Equity, L.P. and its consolidated subsidiaries.  References to &#147;ETE GP&#148; mean LE GP, LLC, which is the general partner of Energy Transfer Equity.  On May 7, 2007, Enterprise GP Holdings acquired non-controlling interests in both ETE GP and Energy Transfer Equity.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>References to &#147;Employee Partnerships&#148; mean EPE Unit L.P. (&#147;EPE Unit I&#148;), EPE Unit II, L.P. (&#147;EPE Unit II&#148;) and EPE Unit III, L.P. (&#147;EPE Unit III&#148;), collectively, which are private company affiliates of EPCO.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On February 5, 2007, a consolidated subsidiary of ours, Duncan Energy Partners L.P. (&#147;Duncan Energy Partners&#148;), completed an initial public offering of its common units (see Note 12).  Duncan Energy Partners owns equity interests in certain of our midstream energy businesses.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For financial reporting purposes, we consolidate the financial statements of Duncan Energy Partners with those of our own and reflect its operations in our business segments.  We control Duncan Energy Partners through our ownership of its general partner.  Also, due to common control of the entities by Dan L. Duncan, the initial consolidated balance sheet of Duncan Energy Partners reflects our historical carrying basis in each of the subsidiaries contributed to Duncan Energy Partners.  Public ownership of Duncan Energy Partners&#146; net assets and earnings are presented as a component of minority interest in our consolidated financial statements.  The borrowings of Duncan Energy Partners are presented as part of our consolidated debt; however, we do not have any obligation for the payment of interest or repayment of borrowings incurred by Duncan Energy Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Basis of Presentation </font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our results of operations for the three and nine months ended September 30, 2007 are not necessarily indicative of results expected for the full year.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Except per unit amounts, or as noted within the context of each footnote disclosure, the dollar amounts presented in the tabular data within these footnote disclosures are stated in thousands of dollars.      </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Essentially all of our assets, liabilities, revenues and expenses are recorded at EPO&#146;s level in our consolidated financial statements.  We act as guarantor of certain of EPO&#146;s debt obligations.  See Note 17 for condensed consolidated financial information of EPO.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments consisting of normal recurring accruals necessary for fair presentation.  Although we believe the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (&#147;GAAP&#148;) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (&#147;SEC&#148;).  These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2006 (Commission File No. 1-14323).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 2.  General Accounting Policies and Related Matters</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Accounting for Employee Benefit Plans</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Dixie Pipeline Company (&#147;Dixie&#148;), a consolidated subsidiary, employs the personnel that operate its pipeline system and certain of these employees are eligible to participate in Dixie&#146;s defined contribution plan and pension and postretirement benefit plans.  Due to the immaterial nature of Dixie&#146;s employee benefit plans to our consolidated financial position, results of operations and cash flows, our discussion is limited to the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Defined Contribution Plan.</font></i></u><i><b><font size=2>  </font></b></i><font size=2>Dixie contributed $0.1 million to its company-sponsored defined contribution plan during each of the three month periods ended September 30, 2007 and 2006.  During each of the nine month periods ended September 30, 2007 and 2006, Dixie contributed $0.2 million to its company-sponsored defined contribution plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Pension and Postretirement Benefit Plans.</font></i></u><i><b><font size=2>  </font></b></i><font size=2> Dixie&#146;s net pension benefit costs were $0.1 million and $0.2 million for the three months ended September 30, 2007 and 2006, respectively.  For the nine months ended September 30, 2007 and 2006, Dixie&#146;s net pension benefit costs were $0.4 million and $0.5 million, respectively.  Dixie&#146;s net postretirement benefit costs were $0.1 million for each of the three month periods ended September 30, 2007 and 2006.  For the nine months ended September 30, 2007 and 2006, Dixie&#146;s net postretirement benefit costs were $0.3 million and $0.2 million, respectively.  During the remainder of 2007, Dixie expects to contribute approximately $0.1 million to its postretirement benefit plan and approximately $1.2 million to its pension plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Consolidation Policy</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We evaluate our financial interests in business enterprises to determine if they represent variable interest entities where we are the primary beneficiary.  If such criteria are met, we consolidate the financial statements of such businesses with those of our own.  Our consolidated financial statements include our accounts and those of our majority-owned subsidiaries in which we have a controlling interest, after the elimination of all material intercompany accounts and transactions.  We also consolidate other entities and ventures in which we possess a controlling financial interest as well as partnership interests where we are the sole general partner of the partnership.    </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>If the entity is organized as a limited partnership or limited liability company and maintains separate ownership accounts, we account for our investment using the equity method if our ownership interest is between 3% and 50% and we exercise significant influence over the entity&#146;s operating and financial policies.  For all other types of investments, we apply the equity method of accounting if our ownership interest is between 20% and 50% and we exercise significant influence over the entity&#146;s operating and financial policies.  Our proportionate share of profits and losses from transactions with equity method unconsolidated affiliates are eliminated in consolidation to the extent such amounts are material and remain on our balance sheet (or those of our equity method investees) in inventory or similar accounts.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>If our ownership interest in an entity does not provide us with either control or significant influence, we account for the investment using the cost method.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Cumulative Effect of Change in Accounting Principle</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In January 2006, we adopted the provisions of Statement of Financial Accounting Standards (&#147;SFAS&#148;) 123(R), &#147;Share-Based Payment.&#148;  Upon adoption of this accounting standard, we recognized, as a benefit, a cumulative effect of change in accounting principle of $1.5 million.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Environmental Costs</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Environmental costs for remediation are accrued based on estimates of known remediation requirements.  Such accruals are based on management&#146;s best estimate of the ultimate cost to remediate a site and are adjusted as further information and circumstances develop.  Those estimates may change substantially depending on information about the nature and extent of contamination, appropriate remediation technologies and regulatory approvals.   Ongoing environmental compliance costs are charged to expense as incurred.  In accruing for environmental remediation liabilities, costs of future expenditures for environmental remediation are not discounted to their present value, unless the amount and timing of the expenditures are fixed or reliably determinable.  Expenditures to mitigate or prevent future environmental contamination are capitalized.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At September 30, 2007 and December 31, 2006, our accrued liabilities for environmental remediation projects totaled $27.9 million and $24.2 million, respectively.  These amounts were derived from a range of reasonable estimates based upon studies and site surveys.  Unanticipated changes in circumstances and/or legal requirements could result in expenses being incurred in future periods in addition to an increase in actual cash required to remediate contamination for which we are responsible.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In February 2007, we entered into a settlement with a third party, which resulted in our receiving, in part, $6.5 million in cash from such third party.  We reserved such cash payment to fund anticipated future environmental remediation costs associated with certain assets that we had acquired from the third party.  Previously, the third party had been obligated to indemnify us for such costs.  As a result of the settlement, this indemnification was terminated.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Estimates</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Preparing our Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Our actual results could differ from these estimates.  On an ongoing basis, management reviews its estimates based on currently available information.  Changes in facts and circumstances may result in revised estimates.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Income Taxes</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We are organized as a pass-through entity for income tax purposes.  As a result, our partners are responsible for federal income taxes on their share of our taxable income. For the three and nine months ended September 30, 2007 and 2006, our provision for income taxes is applicable to state tax obligations </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>under the Revised Texas Franchise Tax and certain federal and state tax obligations of Seminole Pipeline Company (&#147;Seminole&#148;) and Dixie.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In accordance with Financial Accounting Standards Board Interpretation (&#147;FIN&#148;) 48, &#147;Accounting for Uncertainty in Income Taxes,&#148; we must recognize the tax effects of any uncertain tax positions we may adopt, if the position taken by us is more likely than not sustainable.  If a tax position meets such criteria, the tax effect to be recognized by us would be the largest amount of benefit with more than a 50% chance of being realized upon settlement.  This guidance was effective January 1, 2007, and our adoption of this guidance had no material impact on our financial position, results of operations or cash flows.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Minority Interest</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As presented in our Unaudited Condensed Consolidated Balance Sheets, minority interest represents third-party ownership interests in the net assets of our consolidated subsidiaries.  For financial reporting purposes, the assets and liabilities of our majority owned subsidiaries are consolidated with those of our own, with any third-party ownership in such amounts presented as minority interest.  Effective February 1, 2007, the public owners of Duncan Energy Partners&#146; common units are presented as a minority interest in our consolidated financial statements.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Minority interest, as reflected on our September 30, 2007 balance sheet, includes $290.2 million attributable to third party owners of Duncan Energy Partners and the remainder to our other consolidated affiliates.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Minority interest expense for the three and nine months ended September 30, 2007 includes $3.2 million and $9.4 million, respectively, attributable to third party owners of Duncan Energy Partners.  The remaining minority interest expense amounts for these periods in 2007 and likewise those for 2006 are attributable to our other consolidated affiliates.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Contributions from minority interests for the nine months ended September 30, 2007 includes $290.5 million received from third parties in connection with the initial public offering of Duncan Energy Partners in February 2007.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Recent Accounting Developments</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>SFAS 157, &#147;Fair Value Measurements&#148; defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements.  SFAS 157 applies only to fair-value measurements that are already required or permitted by other accounting standards and is expected to increase the consistency of those measurements.  SFAS 157 emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Companies will be required to disclose the extent to which fair value is used to measure assets and liabilities, the inputs used to develop the measurements and the effect of certain of the measurements on earnings (or changes in net assets) for the period. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and we are
required to adopt SFAS 157 as of January 1, 2008.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>SFAS 159, &#147;The Fair Value Option for Financial Assets and Financial Liabilities &#150; Including an amendment of FASB Statement No. 115&#148; permits entities to choose to measure many financial assets and financial liabilities at fair value.  Unrealized gains and losses on items for which the fair value option has been elected would be reported in net income.  SFAS 159 also establishes presentation and disclosure requirements designed to draw comparisons between the different measurement attributes the company elects for similar types of assets and liabilities.  SFAS 159 is effective for fiscal years beginning after November&nbsp;15, 2007.  We are currently evaluating this statement and have not yet determined the impact of such on our financial statements.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 3.  Accounting for Unit-Based Awards</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We account for unit-based awards in accordance with SFAS 123(R).  SFAS 123(R) requires us to recognize compensation expense related to unit-based awards based on the fair value of the award at grant date.  The fair value of restricted unit awards is based on the market price of the underlying common units on the date of grant. The fair value of other unit-based awards is estimated using the Black-Scholes option pricing model.  Under SFAS 123(R), the fair value of an equity-classified award (such as a restricted unit award) is amortized to earnings on a straight-line basis over the requisite service or vesting period.  Compensation expense for liability-classified awards (such as unit appreciation rights (&#147;UARs&#148;)) is recognized over the requisite service or vesting period of an award based on the fair value of the award remeasured at each reporting period.  Liability-type awards
are cash settled upon vesting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes our compensation amounts by plan during each of the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="543" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="57"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="203"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="57"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="203"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="57"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="203"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>EPCO 1998 Long-Term Incentive Plan (&#147;1998 Plan&#148;)</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:8.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Unit options</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;139</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,248</font></p> </td>
        <td width="68" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;508</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:8.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Restricted units</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,981</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,032</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,639</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,761</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:19.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total 1998 Plan (1)</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,120</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,225</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,887</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,269</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Employee Partnerships</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,364</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>517</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,542</font></p> </td>
        <td width="68" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,646</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>DEP Holdings, LLC Unit Appreciation Rights</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>23</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>58</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:19.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total consolidated expense</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;3,507</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,742</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;12,487</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;5,915</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="6" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;Amounts presented for the nine months ended September 30, 2007 include $4.6 million associated with the resignation of our former chief executive officer.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>1998 Plan</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The 1998 Plan provides for the issuance of up to 7,000,000 of our common units.   After giving effect to outstanding option awards at September 30, 2007 and the issuance and forfeiture of restricted unit awards through September 30, 2007, a total of 1,271,456 additional common units could be issued under the 1998 Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Unit options</font></i></u><font size=2>.  Under the 1998 Plan, non-qualified incentive options to purchase a fixed number of our common units may be granted to key employees of EPCO who perform management, administrative or operational functions for us.  The following table presents option activity under the 1998 Plan for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="553" style='border-collapse:collapse; '>
    <tr style='height:10.1pt'>
        <td width="22"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="177"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Weighted-</font></b></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="22"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="177"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Weighted-</font></b></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>average</font></b></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="22"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="177"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>average</font></b></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>remaining</font></b></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Aggregate</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="22"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="177"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Number of</font></b></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>strike price</font></b></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>contractual</font></b></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intrinsic</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="22"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="177"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Units</font></b></p> </td>
        <td width="84"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(dollars/unit) </font></b></p> </td>
        <td width="106" nowrap valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>term (in years)</font></b></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value </font></b><font size=1>(1)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt ;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Outstanding at December 31, 2006</font></b></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,416,000</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;23.32</font></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Granted (2)</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>895,000</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;30.63</font></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Exercised</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(241,000)</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;19.06</font></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent: .25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Settled (3)</font></p> </td>
        <td width="80"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(710,000)</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;24.35</font></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" nowrap valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Outstanding at September 30, 2007</font></b></p> </td>
        <td width="80"  valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,360,000</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;26.22</font></p> </td>
        <td width="106" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7.98</font></p> </td>
        <td width="84" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;2,861</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Options exercisable at:</font></b></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="106" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="22"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="177"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>September 30, 2007</font></p> </td>
        <td width="80"  valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>350,000</font></p> </td>
        <td width="84"  valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;22.08</font></p> </td>
        <td width="106" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4.26</font></p> </td>
        <td width="84" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;2,861</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="22"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="177"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84"  valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="106" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="6" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;Aggregate intrinsic value reflects fully vested unit options at September 30, 2007.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;&nbsp;The total grant date value of these awards was $2.4 million based on the following assumptions: (i) expected life of the option of seven years; (ii) weighted-average risk-free interest rate of 4.80%; (iii) weighted-average expected distribution yield on our common units of 8.40%; and (iv) weighted-average expected unit price volatility on our common units of 23.22%.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;</font><font size=1>Reflects the settlement of options in connection with the resignation of our former chief executive officer.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The total intrinsic value of option awards exercised during the three and nine months ended September 30, 2007 was $0.1 million and $2.9 million, respectively.  At September 30, 2007, there was an estimated $3.1 million of total unrecognized compensation cost related to nonvested option awards granted under the 1998 Plan.  We expect to recognize this amount over a weighted-average period of 3.1 years.  We will recognize our share of these costs in accordance with the EPCO administrative services agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>During the nine months ended September 30, 2007 and 2006, we received cash of $7.7 million and $4.0 million, respectively, from the exercise of option awards granted under the 1998 Plan.  Conversely, our option-related reimbursements to EPCO were $2.9 million and $1.7 million, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Restricted units</font></i></u><font size=2>.  Under the 1998 Plan, we may also issue restricted common units to key employees of EPCO and directors of our general partner.  The following table summarizes information regarding our restricted unit awards for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="521" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="35"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="98"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Weighted-</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="98"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Average Grant</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="98"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Number of</font></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Date Fair Value</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="98"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Units</font></b></p> </td>
        <td width="120" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>per Unit</font></b><font size=1>(1)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Restricted units at December 31, 2006</font></b></p> </td>
        <td width="98"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,105,237</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Granted (2)</font></p> </td>
        <td width="98"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>704,740</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;25.57</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Vested</font></p> </td>
        <td width="98"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(500)</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;25.70</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Forfeited</font></p> </td>
        <td width="98"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(22,700)</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;23.86</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="268"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Settled (3)</font></p> </td>
        <td width="98"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(113,053)</font></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;23.24</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Restricted units at September 30, 2007</font></b></p> </td>
        <td width="98"  valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,673,724</font></p> </td>
        <td width="120"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="98"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="4" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;Determined by dividing the aggregate grant date fair value of awards (including an allowance for forfeitures) by the number of awards issued.</font></p>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;Aggregate grant date fair value of restricted unit awards issued during 2007 was $18.0 million based on a grant date market price of our common units ranging from $28.00 to $30.96 per unit and estimated forfeiture rates ranging from 4.6% to 17.0%.</font></p>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;Reflects the settlement of restricted units in connection with the resignation of our former chief executive officer.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The total fair value of restricted unit awards that vested during the three and nine months ended September 30, 2007 was nominal.  At September 30, 2007, there was an estimated $27.5 million of total unrecognized compensation cost related to restricted unit awards granted under the 1998 Plan, which we expect to recognize over a weighted-average period of 2.6 years.  We will recognize our share of such costs in accordance with the EPCO administrative services agreement.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Employee Partnerships</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>EPCO formed the Employee Partnerships to serve as an incentive arrangement for key employees of EPCO by providing them a &#147;profits interest&#148; in the Employee Partnerships.  Currently, there are three Employee Partnerships. EPE Unit I was formed in August 2005 in connection with Enterprise GP Holdings&#146; initial public offering and EPE Unit II was formed in December 2005.  EPE Unit III was formed in May 2007.  For a detailed description of EPE Unit I and EPE Unit II, see our annual report on Form 10-K for the year ended December 31, 2006.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At September 30, 2007, there was an estimated $28.7 million of combined unrecognized compensation cost related to the Employee Partnerships.  We will recognize our share of these costs in accordance with the EPCO administrative services agreement over a weighted-average period of 4.2 years.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>EPE Unit III.</font></i></u><font size=2>  EPE Unit III owns 4,421,326 units of Enterprise GP Holdings contributed to it by a private company affiliate of EPCO, which, in turn, was made the Class A limited partner of EPE Unit III.  The units of Enterprise GP Holdings contributed by the Class A limited partner had a fair value of $170.0 million on the date of contribution (the &#147;Class A limited partner capital base&#148;).  Certain EPCO employees were issued Class&nbsp;B limited partner interests and admitted as Class B limited partners of EPE Unit III without any capital contribution.  The profits interest awards (i.e., Class&nbsp;B limited partner interests) in EPE Unit III entitle the holder to participate in the appreciation in value of Enterprise GP Holdings&#146; units owned by EPE Unit III.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Unless otherwise agreed to by EPCO, the Class A limited partner and a majority in interest of the Class&nbsp;B limited partners of EPE Unit III, EPE Unit III will be liquidated upon the earlier of: (i) May 7, 2012 or (ii) a change in control of Enterprise GP Holdings or its general partner.  EPE Unit III has the following material terms regarding its quarterly cash distribution to partners: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Distributions of Cash flow </font><i><font size=2>&#150; </font></i><font size=2>Each quarter, 100% of the cash distributions received by EPE Unit III from Enterprise GP Holdings will be distributed to the Class&nbsp;A limited partner until it has received an amount equal to the pro rata Class&nbsp;A preferred return (as defined below), and any remaining distributions received by EPE Unit III will be distributed to the Class&nbsp;B limited partners.  The Class&nbsp;A preferred return equals 3.797% per annum, of the Class&nbsp;A limited partner&#146;s capital base.  The Class&nbsp;A limited partner&#146;s capital base equals approximately $170.0&nbsp;million plus any unpaid Class&nbsp;A preferred return from prior periods, less any distributions made by EPE Unit III of proceeds from the sale of Enterprise GP Holdings&#146; units owned by EPE Unit III (as
described below).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Liquidating Distributions </font><i><font size=2>&#150; </font></i><font size=2>Upon liquidation of EPE Unit III, Enterprise GP Holdings&#146; units having a fair market value equal to the Class&nbsp;A limited partner capital base will be distributed to a private company affiliate of EPCO, plus any accrued Class&nbsp;A preferred return for the quarter in which liquidation occurs.  Any remaining units of Enterprise GP Holdings will be distributed to the Class&nbsp;B limited partners.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale Proceeds </font><i><font size=2>&#150; </font></i><font size=2>If EPE Unit III sells any of the 4,421,326 units of Enterprise GP Holdings that it owns, the sale proceeds will be distributed to the Class&nbsp;A limited partner and the Class&nbsp;B limited partners in the same manner as liquidating distributions described above.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Class&nbsp;B limited partner interests in EPE Unit III that are owned by EPCO employees are subject to forfeiture if the participating employee&#146;s employment with EPCO and its affiliates is terminated prior to May 7, 2012, with customary exceptions for death, disability and certain retirements.  The risk of </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>forfeiture associated with the Class&nbsp;B limited partner interests in EPE Unit III will also lapse upon certain change of control events.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>DEP Holdings, LLC Unit Appreciation Rights</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The non-employee directors of DEP Holdings, LLC, the general partner of Duncan Energy Partners (&#147;DEPGP&#148;), have been granted UARs in the form of letter agreements.  These liability awards are not part of any established long-term incentive plan of EPCO, Enterprise GP Holdings or us.  The compensation expense associated with these awards is recognized by DEPGP, which is our consolidated subsidiary.  The UARs entitle each non-employee director to receive a cash payment on the vesting date equal to the excess, if any, of the fair market value of Enterprise GP Holdings&#146; units (determined as of a future vesting date) over the grant date fair value.  If a director resigns prior to vesting, his UAR awards are forfeited.  These UARs are accounted for similar to liability awards under SFAS 123(R) since they will be settled with cash.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As of September 30, 2007, a total of 90,000 UARs had been granted to non-employee directors of DEPGP that cliff vest in 2012.  If a director resigns prior to vesting, his UAR awards are forfeited.  The grant date fair value with respect to these UARs is based on an Enterprise GP Holdings&#146; unit price of $36.68.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 4.  Financial Instruments</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We are exposed to financial market risks, including changes in commodity prices and interest rates.  In addition, we are exposed to fluctuations in exchange rates between the U.S. dollar and Canadian dollar.  We may use financial instruments (i.e., futures, forwards, swaps, options and other financial instruments with similar characteristics) to mitigate the risks of certain identifiable and anticipated transactions.  In general, the types of risks we attempt to hedge are those related to (i) variability of future earnings, (ii) fair values of certain debt instruments and (iii) cash flows resulting from changes in applicable interest rates, commodity prices or exchange rates.  As a matter of policy, we do not use financial instruments for speculative (or &#147;trading&#148;) purposes.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Interest Rate Risk Hedging Program</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our interest rate exposure results from variable and fixed interest rate borrowings under various debt agreements.  We manage a portion of our interest rate exposure by utilizing interest rate swaps and similar arrangements, which allow us to convert a portion of fixed rate debt into variable rate debt or a portion of variable rate debt into fixed rate debt.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Fair Value Hedges &#150; Interest Rate Swaps</font></i></u><font size=2>. As summarized in the following table, we had eleven interest rate swap agreements outstanding at September 30, 2007 that were accounted for as fair value hedges.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="648" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="54" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Number</font></b></p> </td>
        <td width="132" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Period Covered</font></b></p> </td>
        <td width="76" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Termination</font></b></p> </td>
        <td width="90" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Fixed to</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Notional</font></b></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Hedged Fixed Rate Debt</font></b></p> </td>
        <td width="54" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Of Swaps</font></b></p> </td>
        <td width="132" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>by Swap</font></b></p> </td>
        <td width="76" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Date of Swap</font></b></p> </td>
        <td width="90" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Variable Rate </font></b><font size=1>(1)</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Amount</font></b></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style=' padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes B, 7.50% fixed rate, due Feb. 2011</font></p> </td>
        <td width="54" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>1</font></p> </td>
        <td width="132" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Jan. 2004 to Feb. 2011</font></p> </td>
        <td width="76" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Feb. 2011</font></p> </td>
        <td width="90" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>7.50%  to 8.65%</font></p> </td>
        <td width="72" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$50 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes C, 6.375% fixed rate, due Feb. 2013</font></p> </td>
        <td width="54" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>2</font></p> </td>
        <td width="132" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Jan. 2004 to Feb. 2013</font></p> </td>
        <td width="76" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Feb. 2013</font></p> </td>
        <td width="90" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>6.38%  to 7.19%</font></p> </td>
        <td width="72" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$200 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes G, 5.6% fixed rate, due Oct. 2014</font></p> </td>
        <td width="54" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>6</font></p> </td>
        <td width="132" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>4th Qtr. 2004 to Oct. 2014</font></p> </td>
        <td width="76" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Oct. 2014</font></p> </td>
        <td width="90" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>5.60%  to 6.30%</font></p> </td>
        <td width="72" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$600 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes K, 4.95% fixed rate, due June 2010</font></p> </td>
        <td width="54" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>2</font></p> </td>
        <td width="132" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Aug. 2005 to June 2010</font></p> </td>
        <td width="76" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>June 2010</font></p> </td>
        <td width="90" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>4.95%  to 5.80%</font></p> </td>
        <td width="72" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$200 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="7" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)  The variable rate indicated is the all-in variable rate for the current settlement period.</font></p> </td> </tr>
    <tr>
        <td width="1" ></td>

        <td width="222" ></td>

        <td width="54" ></td>

        <td width="132" ></td>

        <td width="76" ></td>

        <td width="90" ></td>

        <td width="72" ></td>

        <td width="1" ></td> </tr> </table>
            </div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The total fair value of these eleven interest rate swaps at September 30, 2007 and December 31, 2006, was a liability of $19.7 million and $29.1 million, respectively, with an offsetting decrease in the fair value of the underlying debt.  Interest expense for the three months ended September 30, 2007 and 2006 includes a $2.3 million and $1.9 million loss from these swap agreements, respectively.  For the nine months ended September 30, 2007 and 2006, interest expense reflects a loss of $6.9 million and $2.8 million from these swap agreements, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Cash Flow Hedges &#150; Interest Rate Swaps</font></i></u><font size=2>.  In September 2007, Duncan Energy Partners executed three floating-to-fixed interest rate swaps having a combined notional value of $175.0 million.  The purpose of these financial instruments, which are accounted for as cash flow hedges, is to reduce the sensitivity of Duncan Energy Partners&#146; earnings to variable interest rates charged under its revolving credit facility.  The fair value of these swaps at September 30, 2007 and the benefit recognized from them in September 2007 was nominal.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Cash Flow Hedges &#150; Treasury Locks</font></i></u><i><font size=2>.</font></i><font size=2>  At times, we may use treasury lock financial instruments to hedge the underlying U.S. treasury rates related to our anticipated issuances of debt. Gains or losses on the termination of such instruments are amortized to earnings using the effective interest method over the estimated term of the underlying fixed-rate debt.  The following table summarizes changes in our treasury lock portfolio since December 31, 2006 (dollars in millions):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="507" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Notional </font></b></p> </td>
        <td width="92"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Cash</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Amount</font></b></p> </td>
        <td width="92"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Gain (Loss)</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Treasury lock portfolio, December 31, 2006 (1)</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;562.5 </font></p> </td>
        <td width="92"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>First quarter of 2007 additions to portfolio (1)</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>437.5 </font></p> </td>
        <td width="92"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Second quarter of 2007 terminations (2)</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(875.0)</font></p> </td>
        <td width="92"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:35.15pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>42.3 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Third quarter of 2007 additions to portfolio (3)</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>875.0</font></p> </td>
        <td width="92"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Third quarter of 2007 terminations (4)</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(750.0)</font></p> </td>
        <td width="92"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:43.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6.6</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Treasury lock portfolio, September 30, 2007 (5)</font></p> </td>
        <td width="64"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;250.0 </font></p> </td>
        <td width="92"  valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;48.9</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="64"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92"  valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td   colspan="7" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;EPO entered into these transactions related to its anticipated issuances of debt in 2007.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;&nbsp;Terminations relate to the issuance of the Junior Notes B ($500.0 million) and Senior Notes L ($375.0 million).  Of the $42.3 million gain, $10.6 million relates to the Junior Notes B and the remainder to the Senior Notes L and its successor debt.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;&nbsp;EPO entered into these transactions related to its issuance of the Senior Notes L (including its successor debt) in August 2007 ($500.0 million) and anticipated issuance of debt during the first half of 2008 ($250.0 million) </font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(4)&nbsp;&nbsp;&nbsp;&nbsp;Terminations relate to the issuance of the Senior Notes L and its successor debt.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(5)&nbsp;&nbsp;&nbsp;&nbsp;The fair value of these financial instruments at September 30, 2007 was $2.9 million.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Since September 30, 2007, we have executed an additional $350.0 million in notional amount of treasury lock financial instruments.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Commodity Risk Hedging Program</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The prices of natural gas, NGLs and certain petrochemical products are subject to fluctuations in response to changes in supply, market uncertainty and a variety of additional factors that are beyond our control.  In order to manage the price risks associated with such products, we may enter into commodity financial instruments.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The primary purpose of our commodity risk management activities is to hedge our exposure to price risks associated with (i) natural gas purchases, (ii) the value of NGL production and inventories, (iii) related firm commitments, (iv) fluctuations in transportation revenues where the underlying fees are based on natural gas index prices and (v) certain anticipated transactions involving either natural gas, NGLs or certain petrochemical products.  From time to time, we inject natural gas into storage and utilize hedging instruments to lock in the value of our inventory positions.  The commodity financial instruments we utilize may be settled in cash or with another financial instrument.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At September 30, 2007 and December 31, 2006, we had a limited number of commodity financial instruments in our portfolio, which primarily consisted of cash flow hedges.  The fair value of our commodity financial instrument portfolio at September 30, 2007 and December 31, 2006 was a liability of $23.4 million and $3.2 million, respectively.  During the three and nine months ended September 30, 2007, we recorded an expense of $10.5 million and $11.9 million, respectively, related to our commodity financial instruments.  During the three and nine months ended September 30, 2006, we recorded $7.8 million and $2.4 million, respectively, of expense related to our commodity financial instruments.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>15</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Foreign Currency Hedging Program</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We own an NGL marketing business located in Canada and have entered into a construction agreement where payments are indexed to the Canadian dollar.  As a result, we could be adversely affected by fluctuations in the foreign currency exchange rate between the U.S. dollar and the Canadian dollar.  We attempt to hedge this risk using foreign exchange purchase contracts to fix the exchange rate.  We use mark-to-market accounting for those foreign exchange contracts associated with our Canadian NGL marketing business.  The duration of these contracts is typically one month.  At September 30, 2007, $1.1 million of these exchange contracts were outstanding, all of which expired in October 2007.  The foreign exchange contracts associated with our construction activities are accounted for using hedge accounting.  At September 30, 2007, the fair value of these contracts was $2.9 million.  These contracts settle through
 May 2008.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 5.  Inventories</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our inventory amounts were as follows at the dates indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="439" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:11.25pt'>
        <td width="32" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="20" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="107" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30,</font></b></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>December 31,</font></b></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="32" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="20" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="107" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Working inventory </font><font size=1>(1)</font></p> </td>
        <td width="107" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;496,030</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;387,973</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Forward-sales inventory </font><font size=1>(2)</font></p> </td>
        <td width="107" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,858</font></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35,871</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td  nowrap colspan="5" valign=bottom style=' padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:14.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total inventory</font></p> </td>
        <td width="107" nowrap valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;509,888</font></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;423,844</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td  nowrap colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="107" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.75pt 0in 5.75pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td  colspan="7" valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:11.25pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)&nbsp;&nbsp;&nbsp;Working inventory is comprised of inventories of natural gas, NGLs and certain petrochemical products that are either available-for-sale or used in the provision for services.</font></p>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)&nbsp;&nbsp;&nbsp;Forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs.  We value our inventories at the lower of average cost or market.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Operating costs and expenses, as presented on our Unaudited Condensed Statements of Consolidated Operations, include cost of sales amounts related to the sale of inventories.  Our cost of sales was $3.5 billion and $3.2 billion for the three months ended September 30, 2007 and 2006, respectively.  For the nine months ended September 30, 2007 and 2006, our cost of sales was $9.9 billion and $9.0 billion, respectively.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (&#147;LCM&#148;) adjustments when the carrying value of our inventories exceed their net realizable value.  These non-cash charges are a component of cost of sales in the period they are recognized. For the three months ended September 30, 2007 and 2006, we recognized LCM adjustments of approximately $0.2 million and $5.7 million, respectively.  We recognized LCM adjustments of $13.3 million and $17.7 million for the nine months ended September 30, 2007 and 2006, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>16</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Note 6.  Property, Plant and Equipment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our property, plant and equipment values and accumulated depreciation balances were as follows at the dates indicated: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="535" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Estimated</font></b></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Useful Life</font></b></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30,</font></b></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>December 31,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>in Years</font></b></p> </td>
        <td width="99" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Plants and pipelines </font><font size=1>(1)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3-35 </font><font size=1>(5)</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;10,228,684</font></p> </td>
        <td width="101" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;8,774,683       </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Underground and other storage facilities </font><font size=1>(2)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5-35 </font><font size=1>(6)</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>708,827</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>596,649</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Platforms and facilities </font><font size=1>(3)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>20-31</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>634,980</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>161,839</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transportation equipment </font><font size=1>(4)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:5.3pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3-10</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>30,558</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27,008</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Land</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,353</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>40,010</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Construction in progress</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,287,350</font></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,734,083</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:9.65pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,935,752</font></p> </td>
        <td width="101" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,334,272</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Less accumulated depreciation</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,802,357</font></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,501,725</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:9.65pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Property, plant and equipment, net</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;11,133,395</font></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;9,832,547</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="252" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)&nbsp;&nbsp;&nbsp;Plants and pipelines include processing plants; NGL, petrochemical, oil and natural gas pipelines; terminal loading and unloading facilities; office furniture and equipment; buildings; laboratory and shop equipment; and related assets.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)&nbsp;&nbsp;&nbsp;Underground and other storage facilities include underground product storage caverns; storage tanks; water wells; and related assets.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(3)&nbsp;&nbsp;&nbsp;Platforms and facilities include offshore platforms and related facilities and other associated assets.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(4)&nbsp;&nbsp;&nbsp;Transportation equipment includes vehicles and similar assets used in our operations.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(5)&nbsp;&nbsp;&nbsp;In general, the estimated useful lives of major components of this category are as follows:  processing plants, 20-35 years; pipelines, 18-35 years (with some equipment at 5 years); terminal facilities, 10-35 years; office furniture and equipment, 3-20 years; buildings 20-35 years; and laboratory and shop equipment, 5-35 years.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(6)&nbsp;&nbsp;&nbsp;In general, the estimated useful lives of major components of this category are as follows:  underground storage facilities, 20-35 years (with some components at 5 years); storage tanks, 10-35 years; and water wells, 25-35 years (with some components at 5 years).</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="538" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="149" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="149" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="77" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="149" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Depreciation expense </font><font size=1>(1)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;108,692</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;88,929</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;302,758</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;259,361</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Capitalized interest </font><font size=1>(2)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,656</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;15,015</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59,795</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,570</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="6" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)&nbsp;&nbsp;&nbsp;Depreciation expense is a component of operating costs and expenses as presented in our Unaudited Condensed Statements of Consolidated Operations.</font></p>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)&nbsp;&nbsp;&nbsp;Capitalized interest increases the carrying value of the associated asset and reduces interest expense during the period it is recorded.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>17</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><font size=2>Asset retirement obligations</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>An ARO is a legal obligation associated with the retirement of a tangible long-lived asset that results from its acquisition, construction, development or normal operation, or a combination of these factors.  The following table summarizes amounts recognized in connection with AROs since December 31, 2006:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="379" style='border-collapse:collapse'>
    <tr style='height:11.25pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>ARO liability balance, December 31, 2006 </font></b></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;24,403</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Liabilities incurred</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,673</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Liabilities settled</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(2,260)</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Revisions in estimated cash flows</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8,693</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Accretion expense</font></p> </td>
        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,397</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>ARO liability balance, September 30, 2007 </font></b><font size=1>(unaudited)</font></p> </td>
        <td width="86" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;35,906</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Property, plant and equipment at September 30, 2007 includes $11.6 million of asset retirement costs capitalized as an increase in the associated long-lived asset.  Also, as of September 30, 2007, we estimate that accretion expense will approximate $0.5 million for the last three months of 2007, $2.2 million for 2008, $2.0 million for 2009, $2.1 million for 2010 and $2.3 million for 2011.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 7.  Investments In and Advances to Unconsolidated Affiliates</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We own interests in a number of related businesses that are accounted for using the equity method of accounting.  Our investments in and advances to unconsolidated affiliates are grouped according to the business segment to which they relate.  See Note 11 for a general discussion of our business segments. The following table presents our investments in and advances to unconsolidated affiliates at the dates indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="613" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="223" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ownership</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Investments in and advances to</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="223" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Percentage at</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>unconsolidated affiliates at</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="223" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, </font></b></p> </td>
        <td width="94" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, </font></b></p> </td>
        <td width="90" nowrap valign=bottom style=' border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>December 31,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="223" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="94" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="90" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL Pipelines &amp; Services:</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Venice Energy Service Company L.L.C. (&#147;VESCO&#148;) </font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>13.1%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44,071</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39,618</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>K/D/S Promix, L.L.C. (&#147;Promix&#148;)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>50%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>51,186</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>46,140</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Baton Rouge Fractionators LLC (&#147;BRF&#148;)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>32.3%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>25,037</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>25,471</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Onshore Natural Gas Pipelines &amp; Services:</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Jonah Gas Gathering Company (&#147;Jonah&#148;)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>19.4%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>224,374</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>120,370</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Evangeline (1)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>49.5%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,968</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,221</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offshore Pipelines &amp; Services:</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Poseidon Oil Pipeline Company, L.L.C. (&#147;Poseidon&#148;)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>36%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>60,207</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>62,324</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cameron Highway Oil Pipeline Company (&#147;Cameron Highway&#148;) (2)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>50%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>257,551</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>60,216</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Deepwater Gateway, L.L.C. (&#147;Deepwater Gateway&#148;) </font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>50%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>111,866</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>117,646</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Neptune Pipeline Company, L.L.C. (&#147;Neptune&#148;) </font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>25.7%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>55,906</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>58,789</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nemo Gathering Company, LLC (&#147;Nemo&#148;) (3)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>33.9%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,610</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,161</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical Services:</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Baton Rouge Propylene Concentrator, LLC (&#147;BRPC&#148;)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>30%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,712</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,912</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>La Porte (4)</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>50%</font></p> </td>
        <td width="94" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,337</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,691</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="223" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;854,825</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;564,559</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="223" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="6" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;Refers to our ownership interests in Evangeline Gas Pipeline Company, L.P. and Evangeline Gas Corp., collectively.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;During the second quarter of 2007, we contributed $216.5 million to Cameron Highway to fund our portion of the repayment of Cameron Highway&#146;s debt.  See &#147;Cameron Highway&#148; discussion within this Note 7.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2007, we recorded a $7.0 million non-cash impairment charge attributable to our investment in Nemo.  See &#147;Nemo&#148; discussion within this Note 7.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(4)&nbsp;&nbsp;&nbsp;Refers to our ownership interests in La Porte Pipeline Company, L.P. and La Porte GP, LLC, collectively.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On occasion, the price we pay to acquire an ownership interest in a company exceeds the underlying book value of the capital accounts we acquire.  Such excess cost amounts are included within the carrying values of our investments in and advances to unconsolidated affiliates.  At September 30, 2007 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>and December 31, 2006, our investments in Promix, La Porte, Neptune, Poseidon, Cameron Highway, Nemo and Jonah included excess cost amounts totaling $42.9 million and $38.7 million, respectively.  These amounts are attributable to the excess of the fair value of each entity&#146;s tangible assets over their respective book carrying values at the time we acquired an interest in each entity.  We amortize such excess cost amounts as a reduction in equity earnings. Amortization of such excess cost amounts was $0.5 million during each of the three month periods ended September 30, 2007 and 2006.  For the nine months ended September 30, 2007 and 2006, amortization of such amounts was $1.5 million and $1.6 million, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents our equity in income (loss) of unconsolidated affiliates by business segment for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="560" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="35" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="215" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="215" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="215" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL Pipelines &amp; Services</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,684</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,422</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,364</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,864</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Onshore Natural Gas Pipelines &amp; Services</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,351</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>794</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,592</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,300</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offshore Pipelines &amp; Services (1) (2) (3)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8,557</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(330)</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,786</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,373</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical Services</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>368</font></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>379</font></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,186</font></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>769</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="215" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;13,960</font></p> </td>
        <td width="76" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;2,265</font></p> </td>
        <td width="76" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;13,928</font></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;14,306 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="35" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="6" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;Equity earnings from Nemo for the nine months ended September 30, 2007 include a $7.0 million non-cash impairment charge.  See &#147;Nemo&#148; discussion within this Note 7.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;&nbsp;Equity earnings from Cameron Highway for the nine months ended September 30, 2007 were reduced by a charge of $8.8 million for costs associated with the early retirement of Cameron Highway&#146;s debt.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;&nbsp;Equity earnings from Neptune for the three and nine months ended September 30, 2006 include a $7.4 million non-cash impairment charge.  </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Summarized Financial Information of Unconsolidated Affiliates</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following tables present unaudited income statement data for our current unconsolidated affiliates, aggregated by business segment, for the periods indicated (on a 100% basis).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="7" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Summarized Income Statement Information for the Three Months Ended</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="3" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, 2007</font></b></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="3" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, 2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Operating</font></b></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net</font></b></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Operating</font></b></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Revenues</font></b></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income</font></b></p> </td>
        <td width="79"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income</font></b></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Revenues</font></b></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income (Loss)</font></b></p> </td>
        <td width="80" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income (Loss)</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL Pipelines &amp; Services (1)</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;49,579</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;15,435</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;16,118</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;63,086</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(4,031)</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(3,644)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td colspan="3" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Onshore Natural Gas Pipelines &amp; Services</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>126,042</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>24,659</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>23,447</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>127,880</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>20,664</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>17,970</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offshore Pipelines &amp; Services</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>39,331</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>21,363</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>19,974</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>41,245</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>21,311</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14,138</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical Services</font></p> </td>
        <td width="72"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,894</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,480</font></p> </td>
        <td width="79"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,492</font></p> </td>
        <td width="16"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,029</font></p> </td>
        <td width="83"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,527</font></p> </td>
        <td width="80"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,560</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="10" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;During the three  months ended September 30, 2006, VESCO earnings were reduced due to the lingering effects of Hurricane Katrina, including significant storm-related repair expenses.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="7" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Summarized Income Statement Information for the Nine Months Ended</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="3" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, 2007</font></b></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="3" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, 2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Operating</font></b></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net</font></b></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Operating</font></b></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="37"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="148"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Revenues</font></b></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income</font></b></p> </td>
        <td width="79"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income</font></b></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Revenues</font></b></p> </td>
        <td width="83"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income (Loss)</font></b></p> </td>
        <td width="80"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Income (Loss)</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL Pipelines &amp; Services (1)</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;150,367</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;17,916</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;19,873</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;143,592</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(28,394)</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(27,107)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td colspan="3" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Onshore Natural Gas Pipelines &amp; Services</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>360,072</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>71,472</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>67,862</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>354,304</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>77,826</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>70,208</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offshore Pipelines &amp; Services</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>116,957</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>65,227</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>34,204</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>112,495</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>52,407</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>30,622</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical Services</font></p> </td>
        <td width="72"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15,416</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,770</font></p> </td>
        <td width="79"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,832</font></p> </td>
        <td width="16"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14,454</font></p> </td>
        <td width="83"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,358</font></p> </td>
        <td width="80"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,435</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td colspan="10" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2006, VESCO earnings were reduced due to the lingering effects of Hurricane Katrina, including significant storm-related repair expenses.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>19</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Cameron Highway</font></i></u><font size=2>.  We own a 50.0% interest in Cameron Highway, which owns a crude oil pipeline that gathers production from deepwater areas of the Gulf of Mexico, primarily the Southern Green Canyon area, for delivery to refineries and terminals in southeast Texas.  In May 2007, we made an approximate $191.0 million cash contribution to Cameron Highway.  This capital contribution, along with an equal amount contributed by our joint venture partner in Cameron Highway, was used by Cameron Highway to repay $365.0 million outstanding under its Senior Notes A and $14.1 million of related make-whole premiums and accrued interest.  In June 2007, we and our joint venture partner in Cameron Highway made an additional capital contribution of approximately $25.5 million each.  These capital contributions were used by Cameron Highway to repay its Series B notes on
June 7, 2007.  The amount of the repayment was $50.9 million, which included $0.9 million of related make-whole premiums and accrued interest.  As a result of these events, Cameron Highway no longer has any outstanding debt.    </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Nemo</font></i></u><font size=2>.  Nemo was formed in 1999 to construct, own and operate the Nemo Gathering System, a 24-mile natural gas gathering system in the Gulf of Mexico offshore Louisiana.  The Nemo Gathering System, which began operations in 2001, gathers natural gas from certain developments in the Green Canyon area of the Gulf of Mexico to a pipeline interconnect with the Manta Ray Gathering System.  Due to a recent decrease in throughput volumes on the Nemo Gathering System, we evaluated our 33.9% investment in Nemo for impairment during the second quarter of 2007.  The decrease in throughput volumes is primarily due to underperformance of certain fields and natural depletion.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At December 31, 2006, the carrying value of our investment in Nemo was $11.2 million, which included $0.6 million of excess cost related to its original acquisition in 2001.  Our review of Nemo&#146;s estimated future cash flows during the second quarter of 2007 indicated that the carrying value of our investment exceeded its fair value, which resulted in a non-cash impairment charge of $7.0 million.  This loss is recorded as a component of &#147;Equity in income of unconsolidated affiliates&#148; in our Unaudited Condensed Statements of Consolidated Operations for the nine months ended September 30, 2007.  Equity earnings from our investment in Nemo are classified under our Offshore Pipelines &amp; Services business segment.  After recording this impairment charge, the carrying value of our investment in Nemo at September 30, 2007 was $2.6 million, which reflects $0.6 million in losses
and $2.1 million of distributions we recorded during the first nine months of 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our investment in Nemo was written down to fair value, which management prepared using recognized business valuation techniques.  The fair value analysis is based upon management&#146;s expectation of future cash flows.  Such expectation of future cash flows incorporates industry information and assumptions made by management.  For example, the review of Nemo included management estimates regarding the remaining natural gas reserves of producers served by the Nemo Gathering System.  If the assumptions underlying our fair value analysis change and expected cash flows are reduced, additional impairment charges may result. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 8.  Intangible Assets and Goodwill</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Identifiable Intangible Assets</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes our intangible assets at the dates indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, 2007</font></b></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>December 31, 2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="82"  valign=bottom style=' border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Gross</font></b></p> </td>
        <td width="78"  valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Accum.</font></b></p> </td>
        <td width="78"  valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Carrying</font></b></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Gross</font></b></p> </td>
        <td width="84"  valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Accum.</font></b></p> </td>
        <td width="79"  valign=bottom style=' border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Carrying</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="82"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </td>
        <td width="78"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Amort.</font></b></p> </td>
        <td width="78"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </td>
        <td width="16" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </td>
        <td width="84"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Amort.</font></b></p> </td>
        <td width="79"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Value</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL Pipelines &amp; Services (1) </font></p> </td>
        <td width="82"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;520,025</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(137,446)</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;382,579</font></p> </td>
        <td width="16" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;528,594</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(110,644)</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;417,950</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Onshore Natural Gas Pipelines &amp; Services</font></p> </td>
        <td width="82"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>463,551</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(101,556)</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>361,995</font></p> </td>
        <td width="16" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>463,551</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(77,402)</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>386,149</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offshore Pipelines &amp; Services</font></p> </td>
        <td width="82"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>207,012</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(69,369)</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>137,643</font></p> </td>
        <td width="16" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>207,012</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(54,636)</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>152,376</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical Services</font></p> </td>
        <td width="82"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>56,674</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(10,690)</font></p> </td>
        <td width="78"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>45,984</font></p> </td>
        <td width="16" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>56,674</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(9,194)</font></p> </td>
        <td width="79"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>47,480</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:15.8pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total </font></p> </td>
        <td width="82"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,247,262</font></p> </td>
        <td width="78"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(319,061)</font></p> </td>
        <td width="78"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;928,201</font></p> </td>
        <td width="16" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,255,831</font></p> </td>
        <td width="84"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(251,876)</font></p> </td>
        <td width="79"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,003,955</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="213"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="82"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78"  valign=bottom style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78"  valign=bottom style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84"  valign=bottom style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td colspan="8" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;During the second quarter of 2007, we adjusted our preliminary purchase price allocation related to the Piceance Creek Acquisition.  This adjustment resulted in the reclassification of $8.5 million from intangible assets to property, plant and equipment.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents the amortization expense of our intangible assets by segment for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="581" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="26" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="237" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="26" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="237" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="26" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="237" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="79" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="79" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL Pipelines &amp; Services</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,869</font></p> </td>
        <td width="79" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,309</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;26,912</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;21,974</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Onshore Natural Gas Pipelines &amp; Services</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,946</font></p> </td>
        <td width="79" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8,375</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>24,154</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>25,181</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offshore Pipelines &amp; Services</font></p> </td>
        <td width="80" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,745</font></p> </td>
        <td width="79" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,438</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14,733</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>16,905</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical Services</font></p> </td>
        <td width="80" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>499</font></p> </td>
        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>499</font></p> </td>
        <td width="79" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,495</font></p> </td>
        <td width="79" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,495</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="26" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="237" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="80" nowrap valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;22,059</font></p> </td>
        <td width="79" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;23,621</font></p> </td>
        <td width="79" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;67,294</font></p> </td>
        <td width="79" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;65,555</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For the remainder of 2007, amortization expense associated with our intangible assets is currently estimated at $22.4 million.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Goodwill </font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes our goodwill amounts by segment at the dates indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="466" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30,</font></b></p> </td>
        <td width="89" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>December 31,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="89" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL Pipelines &amp; Services</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;153,698</font></p> </td>
        <td width="89" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;152,595</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Onshore Natural Gas Pipelines &amp; Services</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>282,121</font></p> </td>
        <td width="89" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>282,121</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offshore Pipelines &amp; Services</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>82,135</font></p> </td>
        <td width="89" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>82,135</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical Services</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>73,690</font></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>73,690</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="18" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="246" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Totals</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;591,644</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;590,541</font></p> </td> </tr>
    <tr>
        <td width="18" ></td>

        <td width="18" ></td>

        <td width="246" ></td>

        <td width="96" ></td>

        <td width="89" ></td> </tr> </table>
            </div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>21</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 9.  Debt Obligations</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our consolidated debt obligations consisted of the following at the dates indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="592" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="24" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="359" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30,</font></b></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>December 31,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="359" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>EPO senior debt obligations:</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Multi-Year Revolving Credit Facility, variable rate, due October 2011 </font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;105,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;410,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pascagoula MBFC Loan, 8.70% fixed-rate, due March 2010</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>54,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>54,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes B, 7.50% fixed-rate, due February 2011</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>450,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>450,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes C, 6.375% fixed-rate, due February 2013</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>350,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>350,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes D, 6.875% fixed-rate, due March 2033</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes E, 4.00% fixed-rate, due October 2007 (1)</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes F, 4.625% fixed-rate, due October 2009</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes G, 5.60% fixed-rate, due October 2014</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>650,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>650,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes H, 6.65% fixed-rate, due October 2034</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>350,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>350,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes I, 5.00% fixed-rate, due March 2015 </font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>250,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>250,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes J, 5.75% fixed-rate, due March 2035 </font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>250,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>250,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes K, 4.950% fixed-rate, due June 2010</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes L, 6.30% fixed-rate, due September 2017</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>800,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petal GO Zone Bonds, variable rate, due August 2034</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>57,500</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Duncan Energy Partners&#146; debt obligation:</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$300 Million Revolving Credit Facility, variable rate, due February 2011</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>215,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Dixie Revolving Credit Facility, variable rate, due June 2010</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>10,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>10,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other, 8.75% fixed-rate, due June 2010 (2)</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,068</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,068&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="359" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total principal amount of senior debt obligations</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,546,568</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,779,068</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>EPO Junior Subordinated Notes A, due August 2066</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>550,000</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>550,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>EPO Junior Subordinated Notes B, due January 2068</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>700,000</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:29.85pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total principal amount of senior and junior debt obligations</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,796,568</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,329,068</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other, including unamortized discounts and premiums and changes in fair value (3)</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(24,580)</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(33,478)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="359" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Long-term debt </font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,771,988</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;5,295,590</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="359" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Standby letters of credit outstanding </font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49,858</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="359" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td colspan="5" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;In accordance with SFAS 6, &#147;Classification of Short-Term Obligations Expected to be Refinanced,&#148; long-term and current maturities of debt reflects the classification of such obligations at September 30, 2007 and December 31, 2006.  With respect to Senior Notes E, EPO repaid this note on October 15, 2007,  using cash and available credit capacity under its $1.25 billion Multi-Year Revolving Credit Facility to fund this repayment.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;&nbsp;Represents remaining debt obligations assumed in connection with the GulfTerra Merger, which we expect to redeem in the fourth quarter of 2007.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;&nbsp;The September 30, 2007 amount includes a liability of $19.7 million related to fair value hedges and a net $4.9 million in unamortized discounts.  The December 31, 2006 amount includes a liability of $29.1 million related to fair value hedges and a net $4.4 million in unamortized discounts.  </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Parent-Subsidiary guarantor relationships</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We act as guarantor of the debt obligations of EPO with the exception of the Dixie revolving credit facility and the senior subordinated notes we assumed in connection with the GulfTerra Merger.  If EPO were to default on any debt we guarantee, we would be responsible for full repayment of that obligation.  We do not act as guarantor of the debt obligations of Duncan Energy Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>EPO&#146;s debt obligations</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Apart from that discussed below, there have been no significant changes in the terms of EPO&#146;s debt obligations since those reported in our annual report on Form 10-K for the year ended December 31, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Junior Notes B</font></i></u><font size=2>.  EPO sold $700 million in principal amount of fixed/floating, unsecured, long-term subordinated notes due January 2068 (&#147;Junior Notes B&#148;) during the second quarter of 2007.  EPO used the proceeds from this subordinated debt to temporarily reduce borrowings outstanding under its Multi-Year Revolving Credit Facility and for general partnership purposes.  EPO&#146;s payment obligations </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>22</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>under Junior Notes B are subordinated to all of its current and future senior indebtedness (as defined in the Indenture Agreement).  We have guaranteed repayment of amounts due under Junior Notes B through an unsecured and subordinated guarantee.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The indenture agreement governing Junior Notes B allows EPO to defer interest payments on one or more occasions for up to ten consecutive years subject to certain conditions.  During any period in which interest payments are deferred and subject to certain exceptions, neither we nor EPO can declare or make any distributions to any of our respective equity securities or make any payments on indebtedness or other obligations that rank pari passu</font><i><font size=2> </font></i><font size=2>with or are subordinate to Junior Notes B.  Junior Notes B rank pari passu with the Junior Subordinated Notes A, due August 2066 (&#147;Junior Notes A&#148;), which were issued during the third quarter of 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Junior Notes B will bear interest at a fixed annual rate of 7.034% through January 15, 2018, payable semi-annually in arrears in January and July of each year, commencing in January 2008.  After January 2018, the Junior Notes B will bear variable rate interest at the greater of (1) the sum of the 3-month London Interbank Offered Rate (&#147;LIBOR&#148;) for the related interest period plus a spread of 268 basis points or (2) 7.034% per annum, payable quarterly in arrears in January, April, July and October of each year commencing in April 2018.  Interest payments may be deferred on a cumulative basis for up to ten consecutive years, subject to certain provisions.  The Junior Notes B mature in January 2068 and are not redeemable by EPO prior to January 2018 without payment of a make-whole premium.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In connection with the issuance of Junior Notes B, we and EPO entered into a Replacement Capital Covenant in favor of the covered debt holders (as named therein) pursuant to which we and EPO agreed for the benefit of such debt holders that neither we nor EPO would redeem or repurchase such junior notes on or before January 15, 2038, unless such redemption or repurchase is made from the proceeds of issuance of certain securities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Senior Notes L</font></i><font size=2>.</font></u><font size=2>  In September 2007, EPO sold $800.0 million in principal amount of ten-year senior unsecured notes (the &#147;Senior Notes L&#148;) under its new universal shelf registration statement.  These notes were issued at 99.953% of their principal amount, have a fixed-rate interest of 6.30% and a maturity date of September 15, 2017.  The Senior Notes L will pay interest semi-annually in arrears on March 15 and September 15 of each year, beginning March 15, 2008.  EPO used the net proceeds from the issuance of these notes to temporarily reduce indebtedness outstanding under its Multi-Year Revolving Credit Facility and for general partnership purposes.  In October 2007, EPO used borrowing capacity under its Multi-Year Revolving Credit Facility to repay its $500.0 million Senior Notes E.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>These fixed-rate notes are unsecured obligations of EPO and rank equally with its existing and future unsecured and unsubordinated indebtedness (as defined in the Indenture Agreement).  We have guaranteed repayment of amounts due under these notes through an unsecured and unsubordinated guarantee.  However, in the future, should any of EPO&#146;s subsidiaries become guarantors or co-obligors of its debt obligations maturing in one year or more, then these subsidiaries will jointly and severally, fully and unconditionally, guarantee the payment obligations under the notes. We may redeem the notes before their maturity in whole, at any time, or in part, from time to time, prior to maturity, at a redemption price that includes accrued and unpaid interest and a make-whole premium.  These notes were issued under an indenture containing certain covenants, which restrict our ability, with
certain exceptions, to incur debt secured by liens and engage in sale and leaseback transactions.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Petal MBFC Loan</font></i></u><i><font size=2>.  </font></i><font size=2>In August 2007, Petal Gas Storage L.L.C. (&#147;Petal&#148;), a wholly owned subsidiary of EPO, entered into a loan agreement and a promissory note with the Mississippi Business Finance Corporation (&#147;MBFC&#148;) under which Petal may borrow up to $29.5 million.&nbsp; On the same date, the MBFC issued taxable bonds to EPO in the maximum amount of $29.5 million.&nbsp; As of September 30, 2007, there was $8.9 million outstanding under the loan and the bonds. &nbsp;EPO will make advances on the bonds to the MBFC and the MBFC will in turn make identical advances to Petal under the promissory note. The&nbsp;promissory note and the taxable bonds have identical&nbsp;terms including fixed interest rates of 5.90% and maturities of fifteen years.&nbsp; The bonds and the associated tax incentives are authorized under
the Mississippi Business Finance Act.&nbsp; Petal may prepay on the promissory note without penalty, and thus </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>23</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>cause the bonds to be redeemed, any time after one year from their date of issue.&nbsp; The loan and bonds are netted in preparing our consolidated balance sheet, as well the related interest expense and income amounts are netted in preparing our consolidated income statement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Petal GO Zone Bonds</font></i></u><i><font size=2>.  </font></i><font size=2>In August 2007, Petal borrowed&nbsp;$57.5 million from the MBFC pursuant to a loan agreement and promissory note between Petal and the MBFC to pay a portion of the costs of certain natural gas storage facilities located in Petal, Mississippi.&nbsp; The promissory note between Petal and MBFC is guaranteed by EPO and supported by a letter of credit issued under EPO&#146;s Multi-Year Revolving Credit Facility.  On the same date, the MBFC issued $57.5 million in Gulf Opportunity Zone Tax-Exempt (&#147;GO Zone&#148;) bonds to various third parties.  A portion of the GO Zone bond proceeds are being held by a third party trustee and reflected as a component of other assets on our balance sheet.  The remaining proceeds held by the trustee will be released to us as we spend capital to complete the construction of
the natural gas storage facilities. At September 30, 2007, $39.3 million of the GO Zone bond proceeds remained held by the third party trustee.&nbsp; The&nbsp;promissory note and the GO Zone bonds have identical terms including floating interest rates and maturities of twenty-seven years.&nbsp; The bonds and the associated tax incentives are authorized under the Mississippi Business Finance Act and the Gulf Opportunity Zone Act of 2005.&nbsp; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Duncan Energy Partners&#146; debt obligation</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We consolidate the debt of Duncan Energy Partners with that of our own; however, we do not have the obligation to make interest payments or debt payments with respect to the debt of Duncan Energy Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Duncan Energy Partners entered into a $300.0&nbsp;million revolving credit facility, all of which may be used for letters of credit, with a $30.0 million sublimit for Swingline loans.  Letters of credit outstanding under this facility reduce the amount available for borrowings.  At the closing of its initial public offering, Duncan Energy Partners made its initial borrowing of $200.0 million under the facility to fund the $198.9 million cash distribution to EPO and the remainder to pay debt issuance costs.  At September 30, 2007, the principal balance outstanding under this facility was $215.0 million.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This credit facility matures in February 2011 and will be used by Duncan Energy Partners in the future to fund working capital and other capital requirements and for general partnership purposes.  Duncan Energy Partners may make up to two requests for one-year extensions of the maturity date (subject to certain restrictions).  The revolving credit facility is available to pay distributions upon the initial contribution of assets to Duncan Energy Partners, fund working capital, make acquisitions and provide payment for general purposes.  Duncan Energy Partners can increase the revolving credit facility, without consent of the lenders, by an amount not to exceed $150.0&nbsp;million by adding to the facility one or more new lenders and/or increasing the commitments of existing lenders.  No existing lender is required to increase its commitment, unless it agrees to do so in its sole discretion.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This revolving credit facility offers the following unsecured loans, each having different interest requirements: (i) LIBOR loans bear interest at a rate per annum equal to LIBOR plus the applicable LIBOR margin (as defined in the credit agreement), (ii) Base Rate loans bear interest at a rate per annum equal to the higher of (a) the rate of interest publicly announced by the administrative agent, Wachovia Bank, National Association, as its Base Rate and (b) 0.5% per annum above the Federal Funds Rate in effect on such date and (iii)  Swingline loans bear interest at a rate per annum equal to LIBOR plus an applicable LIBOR margin.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The revolving credit facility requires Duncan Energy Partners to maintain a leverage ratio for the prior four fiscal quarters of not more than 4.75 to 1.00 at the last day of each fiscal quarter commencing June&nbsp;30, 2007; provided that, upon the closing of a permitted acquisition, such ratio shall not exceed&nbsp;(a) 5.25 to 1.00 at the last day of the fiscal quarter in which such specified acquisition occurred and at the last day of each of the two fiscal quarters following the fiscal quarter in which such specified acquisition occurred, and (b) 4.75 to 1.00 at the last day of each fiscal quarter thereafter.  In addition, prior to obtaining an investment-grade rating by Standard&nbsp;&amp; Poor&#146;s Ratings Services, Moody&#146;s Investors Service or Fitch Ratings, Duncan Energy Partners&#146; interest coverage ratio, for the prior four fiscal quarters shall not be less </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>24</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>than 2.75 to 1.00 at the last day of each fiscal quarter commencing June&nbsp;30, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Duncan Energy Partners&#146; credit facility contains other customary covenants.  Also, if an event of default exists under the credit agreement, the lenders will be able to accelerate the maturity date of amounts borrowed under the credit agreement and exercise other rights and remedies.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Canadian Debt Obligations</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In May 2007, Canadian Enterprise Gas Products, Ltd. (&#147;Canadian Enterprise&#148;), a wholly-owned subsidiary of EPO, entered into a $30.0 million Canadian revolving credit facility with The Bank of Nova Scotia.  The credit facility, which includes the issuance of letters of credit, matures in October 2011.  Letters of credit outstanding under this facility reduce the amount available for borrowings.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Borrowings may be made in Canadian or U.S. dollars.  Canadian denominated borrowings may be comprised of Canadian Prime Rate (&#147;CPR&#148;) loans or Bankers&#146; Acceptances and U.S. denominated borrowings may be comprised of Alternative Base Rate (&#147;ABR&#148;) or Eurodollar loans, each having different interest rate requirements.  CPR loans bear interest at a rate determined by reference to the Canadian Prime Rate.  ABR loans bear interest at a rate determined by reference to an alternative base rate as defined in the credit agreement.  Eurodollar loans bear interest at a rate determined by the LIBOR plus an applicable rate as defined in the credit agreement.  Bankers&#146; Acceptances carry interest at the rate for Canadian bankers&#146; acceptances plus an applicable rate as defined in the credit agreement.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The credit facility contains customary covenants and events of default.  The restrictive covenants limit Canadian Enterprise from materially changing the nature of its business or operations, dissolving, or completing mergers.  A continuing event of default would accelerate the maturity of amounts borrowed under the credit facility.  The obligations under the credit facility are guaranteed by EPO.  As of September 30, 2007, there were no debt obligations outstanding under this credit facility.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Covenants</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We are in compliance with the covenants of our consolidated debt agreements at September 30, 2007 and December 31, 2006.</font><i><font size=2>  </font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Information regarding variable interest rates paid </font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents the range of interest rates paid and weighted-average interest rate paid on our consolidated variable-rate debt obligations during the nine months ended September 30, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="565" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="114"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Range of</font></b></p> </td>
        <td width="108" nowrap  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Weighted-average</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="114"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>interest rates</font></b></p> </td>
        <td width="108"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>interest rate</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="114"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>paid</font></b></p> </td>
        <td width="108"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>paid</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>EPO&#146;s Multi-Year Revolving Credit Facility</font></p> </td>
        <td width="114"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5.82% to 8.25%</font></p> </td>
        <td width="108"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5.87%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Duncan Energy Partners&#146; Revolving Credit Facility</font></p> </td>
        <td width="114"  valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5.99% to 6.48%</font></p> </td>
        <td width="108"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6.21%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dixie Revolving Credit Facility</font></p> </td>
        <td width="114"  valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5.66% to 5.67%</font></p> </td>
        <td width="108"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5.66%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Canadian Enterprise Revolving Credit Facility</font></p> </td>
        <td width="114"  valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4.95% to 5.82%</font></p> </td>
        <td width="108"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5.68%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="342"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Petal GO Zone Bonds</font></p> </td>
        <td width="114"  valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3.76% to 4.15%</font></p> </td>
        <td width="108"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3.89%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>25</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Consolidated debt maturity table</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents the scheduled maturities of principal amounts of our debt obligations for the next five years and in total thereafter.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="302" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="206" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="206" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="206" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2009</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>500,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="206" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2010</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>569,068</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="206" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2011</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,270,000</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="206" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Thereafter </font></p> </td>
        <td width="96" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,457,500</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="206" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total scheduled principal payments</font></p> </td>
        <td width="96" nowrap valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;6,796,568</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In accordance with SFAS 6, long-term and current maturities of debt reflect the classification of such obligations at September 30, 2007 and December 31, 2006.  With respect to the $500.0 million in principal due under Senior Notes E in October 2007, EPO repaid this note on October 15, 2007 using cash and available credit capacity under its Multi-Year Revolving Credit Facility.  The preceding table and our Unaudited Condensed Consolidated Balance Sheets at September 30, 2007 and December 31, 2006 reflect this ability to refinance.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Debt Obligations of Unconsolidated Affiliates</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have two unconsolidated affiliates with long-term debt obligations.  The following table shows (i) our ownership interest in each entity at September 30, 2007, (ii) total debt of each unconsolidated affiliate at September 30, 2007 (on a 100% basis to the affiliate) and (iii) the corresponding scheduled maturities of such debt.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="605" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="129" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Our</font></b></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="6" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Scheduled Maturities of  Debt</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="129" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ownership</font></b></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="63" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="61" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>After</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="129" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest</font></b></p> </td>
        <td width="63" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2008</font></b></p> </td>
        <td width="63" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2009</font></b></p> </td>
        <td width="61" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2010</font></b></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2011</font></b></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2011</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="129" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Poseidon </font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>36.0%</font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91,000</font></p> </td>
        <td width="57" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="57" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="61" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="57" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;91,000</font></p> </td>
        <td width="57" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="129" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Evangeline</font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>49.5%</font></p> </td>
        <td width="63" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>25,650</font></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,000</font></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,000</font></p> </td>
        <td width="63" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,000</font></p> </td>
        <td width="61" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,650</font></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="57" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="129" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="63" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="63" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;116,650</font></p> </td>
        <td width="57" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;5,000</font></p> </td>
        <td width="57" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;5,000</font></p> </td>
        <td width="63" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;5,000</font></p> </td>
        <td width="61" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;10,650</font></p> </td>
        <td width="57" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;91,000</font></p> </td>
        <td width="57" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Cameron Highway repaid its $365.0 million Series A notes and $50.0 million Series B notes in May and June 2007, respectively, using cash contributions from its partners.  We funded our 50% share of the capital contributions using borrowings under EPO&#146;s Multi-Year Revolving Credit Facility.   Cameron Highway incurred an $11.0 million make-whole premium in connection with the repayment of its Series A notes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The credit agreements of our unconsolidated affiliates contain various affirmative and negative covenants, including financial covenants.  These businesses were in compliance with such covenants at September 30, 2007.  The credit agreements of our unconsolidated affiliates restrict their ability to pay cash dividends if a default or an event of default (as defined in each credit agreement) has occurred and is continuing at the time such dividend is scheduled to be paid.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Apart from the repayment of Cameron Highway&#146;s Series A and Series B notes, there have been no significant changes in the terms of the debt obligations of our unconsolidated affiliates since those reported in our annual report on Form 10-K for the year ended December 31, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Note 10.  Partners&#146; Equity and Distributions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our common units represent limited partner interests, which give the holders thereof the right to participate in distributions and to exercise the other rights or privileges available to them under our</font><i><font size=2> </font></i><font size=2>Fifth Amended and Restated Agreement of Limited Partnership (together with all amendments thereto, the &#147;Partnership Agreement&#148;).  We are managed by our general partner, Enterprise Products GP. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>26</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In accordance with the Partnership Agreement, capital accounts are maintained for our general partner and limited partners.  The capital account provisions of our Partnership Agreement incorporate principles established for U.S. Federal income tax purposes and are not comparable to the equity accounts reflected under GAAP in our consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our Partnership Agreement sets forth the calculation to be used in determining the amount and priority of cash distributions that our limited partners and general partner will receive. The Partnership Agreement also contains provisions for the allocation of net earnings and losses to our limited partners and general partner.  For purposes of maintaining partner capital accounts, the Partnership Agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interests.  Normal income and loss allocations according to percentage interests are done only after giving effect to priority earnings allocations in an amount equal to incentive cash distributions allocated to our general partner.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Equity Offerings and Registration Statements </font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In general, the Partnership Agreement authorizes us to issue an unlimited number of additional limited partner interests and other equity securities for such consideration and on such terms and conditions as may be established by Enterprise Products GP in its sole discretion (subject, under certain circumstances, to the approval of our unitholders).  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In April 2007, we filed a registration statement with the SEC authorizing the issuance of up to 25,000,000 common units in connection with our distribution reinvestment plan (&#147;DRIP&#148;).  The DRIP provides unitholders of record and beneficial owners of our common units a voluntary means by which they can increase the number of common units they own by reinvesting the quarterly cash distributions they would otherwise receive into the purchase of additional common units.  A total of 1,518,291 of our common units were issued in February, May and August of 2007 in connection with the DRIP and the employee unit purchase plan (&#147;EUPP&#148;).  The issuance of these units generated $45.3 million in net proceeds.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In August 2007, we filed a universal shelf registration statement with the SEC that allows us to issue an unlimited amount of debt and equity securities.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table reflects the number of common units issued and the net proceeds received from underwritten and other common unit offerings completed during the nine months ended September 30, 2007: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="528" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net Proceeds from Sale of Common Units</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.8pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Number of </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Contributed</font></b></p> </td>
        <td width="90" nowrap valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Contributed by</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>common units </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>by Limited</font></b></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>General </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>issued </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Partners</font></b></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Partner</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Proceeds</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>February DRIP and EUPP</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>438,631</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;12,495</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;255</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;12,750</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>May DRIP and EUPP</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>494,169</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:19.3pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15,181</font></p> </td>
        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>622</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15,803</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>August DRIP and EUPP</font></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>585,491</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>16,413</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>333</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>16,746</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="187" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:19.3pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total 2007</font></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,518,291</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;44,089</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,210</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;45,299</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>27</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Summary of Changes in Outstanding Units</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes changes in our outstanding units since December 31, 2006:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="517" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="254" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Restricted</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="254" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.8pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Common</font></b></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Common</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="254" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Units</font></b></p> </td>
        <td width="71" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Units</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Balance, December 31, 2006</font></b></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>431,303,193</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,105,237</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Units issued in connection with DRIP and EUPP</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,518,291</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Units issued in connection with equity-based awards</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>241,000</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Restricted common units issued</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>704,740</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Vesting of restricted units</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>500</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(500)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="31" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Forfeiture or settlement of restricted units</font></p> </td>
        <td width="71" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="71" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(135,753)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Balance, September 30, 2007</font></b></p> </td>
        <td width="71" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>433,062,984</font></p> </td>
        <td width="71" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,673,724</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Summary of Changes in Limited Partners&#146; Equity </font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table details the changes in limited partners&#146; equity since December 31, 2006:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="499" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Restricted</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Common</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.8pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Common</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Units</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Units</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Balance, December 31, 2006</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,320,577</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.8pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,340</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,329,917</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net income</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>286,086</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>898</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>286,984</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating leases paid by EPCO</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,543</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,548</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cash distributions to partners</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(615,442)</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,818)</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(617,260)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net proceeds from sales of common units</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>44,089</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>44,089</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Proceeds from exercise of unit options</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,451</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,451</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Repurchase of restricted units and options</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(512)</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,056)</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,568)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Unit option reimbursements to EPCO</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(2,859)</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(2,859)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="29" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="253" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Amortization of equity-based awards</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,095</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,167</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,262</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Balance, September 30, 2007</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,044,028</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;13,536</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,057,564</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Distributions to Partners</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The percentage interest of Enterprise Products GP in our quarterly cash distributions is increased after certain specified target levels of quarterly distribution rates are met.  At current distribution rates, we are in the highest tier of such incentive targets.  Enterprise Products GP&#146;s quarterly incentive distribution thresholds are as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2% of quarterly cash distributions up to $0.253 per unit;</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>15% of quarterly cash distributions from $0.253 per unit up to $0.3085 per unit; and</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>25% of quarterly cash distributions that exceed $0.3085 per unit.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We paid incentive distributions of $27.4 million and $22.4 million to Enterprise Products GP during the three months ended September 30, 2007 and 2006, respectively.  During the nine months ended September 30, 2007 and 2006, we paid incentive distributions of $79.0 million and $62.5 million, respectively, to Enterprise Products GP.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our quarterly cash distributions for 2007 are presented in the following table:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="407" style='margin-left:0pt;border-collapse:collapse; '>
    <tr style='height:10.1pt'>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cash Distribution History</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Distribution</font></b></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Record</font></b></p> </td>
        <td width="98" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Payment</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>per Unit </font></b></p> </td>
        <td width="99" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Date</font></b></p> </td>
        <td width="98" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Date</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1st Quarter 2007</font></p> </td>
        <td width="87" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 0.4750</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Apr. 30, 2007</font></p> </td>
        <td width="98" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>May 10, 2007</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2nd Quarter 2007</font></p> </td>
        <td width="87" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 0.4825</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Jul. 31, 2007</font></p> </td>
        <td width="98" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Aug. 9, 2007</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3rd Quarter 2007</font></p> </td>
        <td width="87" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 0.4900</font></p> </td>
        <td width="99" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Oct. 31, 2007</font></p> </td>
        <td width="98" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Nov. 8, 2007</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>28</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 11.  Business Segments</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have four reportable business segments: NGL Pipelines &amp; Services; Onshore Natural Gas Pipelines &amp; Services; Offshore Pipelines &amp; Services; and Petrochemical Services.  Our business segments are generally organized and managed according to the type of services rendered (or technologies employed) and products produced and/or sold.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We evaluate segment performance based on the non-GAAP financial measure of gross operating margin.  Gross operating margin (either in total or by individual segment) is an important performance measure of the core profitability of our operations.  This measure forms the basis of our internal financial reporting and is used by senior management in deciding how to allocate capital resources among business segments.  We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results.  The GAAP financial measure most directly comparable to total segment gross operating margin is operating income.  Our non-GAAP financial measure of total segment gross operating margin should not be considered an alternative to GAAP operating income.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We define total segment gross operating margin as consolidated operating income before: (i) depreciation, amortization and accretion expense; (ii) operating lease expenses for which we do not have the payment obligation; (iii) gains and losses on the sale of assets; and (iv) general and administrative costs.  Gross operating margin is exclusive of other income and expense transactions, provision for income taxes, minority interest, extraordinary charges and the cumulative effect of change in accounting principle.  Gross operating margin by segment is calculated by subtracting segment operating costs and expenses (net of the adjustments noted above) from segment revenues, with both segment totals before the elimination of intersegment and intrasegment transactions.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Segment revenues include intersegment and intrasegment transactions, which are generally based on transactions made at market-related rates.  Our consolidated revenues reflect the elimination of intercompany (both intersegment and intrasegment) transactions.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We include equity earnings from unconsolidated affiliates in our measurement of segment gross operating margin and operating income. Our equity investments with industry partners are a vital component of our business strategy.  They are a means by which we conduct our operations to align our interests with those of our customers and/or suppliers.  This method of operation enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed versus what we could accomplish on a stand-alone basis.  Many of these businesses perform supporting or complementary roles to our other business operations.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our integrated midstream energy asset system (including the midstream energy assets of our equity method investees) provides services to producers and consumers of natural gas, NGLs, crude oil and certain petrochemicals.  In general, hydrocarbons enter our asset system in a number of ways, such as an offshore natural gas or crude oil pipeline, an offshore platform, a natural gas processing plant, an onshore natural gas gathering pipeline, an NGL fractionator, an NGL storage facility, or an NGL transportation or distribution pipeline.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Many of our equity investees are included within our integrated midstream asset system.  For example, we have ownership interests in several offshore natural gas and crude oil pipelines.  Other examples include our use of the Promix NGL fractionator to process mixed NGLs extracted by our gas plants.  The fractionated NGLs we receive from Promix can then be sold in our NGL marketing activities.  Given the integral nature of our equity method investees to our operations, we believe the presentation of earnings from such investees as a component of gross operating margin and operating income is meaningful and appropriate.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Historically, substantially all of our consolidated revenues were earned in the United States and derived from a wide customer base.  The majority of our plant-based operations are located in Texas, Louisiana, Mississippi, New Mexico and Wyoming.  Our natural gas, NGL and crude oil pipelines are located in a number of regions of the United States including (i) the Gulf of Mexico offshore Texas and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>29</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Louisiana; (ii) the south and southeastern United States (primarily in Texas, Louisiana, Mississippi and Alabama); and (iii) certain regions of the central and western United States, including the Rocky Mountains.  Our marketing activities are headquartered in Houston, Texas and serve customers in a number of regions of the United States including the Gulf Coast, West Coast and Mid-Continent areas.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Consolidated property, plant and equipment and investments in and advances to unconsolidated affiliates are assigned to each segment on the basis of each asset&#146;s or investment&#146;s principal operations.  The principal reconciling difference between consolidated property, plant and equipment and the total value of segment assets is construction-in-progress.  Segment assets represent the net book carrying value of facilities and other assets that contribute to gross operating margin of that particular segment.  Since assets under construction generally do not contribute to segment gross operating margin, such assets are excluded from segment asset totals until they are placed in service.  Consolidated intangible assets and goodwill are assigned to each segment based on the classification of the assets to which they relate.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We consolidate the financial statements of Duncan Energy Partners with those of our own.  As a result, our consolidated gross operating margin amounts include the gross operating margin amounts of Duncan Energy Partners on a 100% basis.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents our measurement of total segment gross operating margin for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76"  valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="76" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="76" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="76"  valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Revenues </font><font size=1>(1)</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4,111,996</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;3,872,525</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;11,647,656</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;10,640,452</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Less:</font></p> </td>
        <td width="346"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating costs and expenses </font><font size=1>(1)</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(3,896,411)</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(3,584,783)</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(10,981,562)</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(9,955,231)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Add:</font></p> </td>
        <td width="346" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Equity in income of unconsolidated affiliates </font><font size=1>(1)</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,960</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,265</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,928</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14,306</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Depreciation, amortization and accretion in</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;&nbsp;operating costs and expenses </font><font size=1>(2)</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>133,869</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>112,412</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>374,522</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>325,180</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating lease expense paid by EPCO </font><font size=1>(2)</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>526</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>526</font></p> </td>
        <td width="76" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,579</font></p> </td>
        <td width="76"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,582</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Loss (gain) on sale of assets in operating</font></p> </td>
        <td width="76"  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76"  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;&nbsp;costs and expenses </font><font size=1>(2)</font></p> </td>
        <td width="76"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(219)</font></p> </td>
        <td width="76" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(3,204)</font></p> </td>
        <td width="76" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,445</font></p> </td>
        <td width="76"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(3,401)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total segment gross operating margin</font></p> </td>
        <td width="76"  valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;363,721</font></p> </td>
        <td width="76"  valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399,741</font></p> </td>
        <td width="76" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,061,568</font></p> </td>
        <td width="76" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,022,888</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="20"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="346"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76"  valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr> </table>
<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="670" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;These amounts are taken from our Unaudited Condensed Statements of Consolidated Operations.</font></p>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;These non-cash expenses are taken from the operating activities section of our Unaudited Condensed Statements of Consolidated Cash Flows.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A reconciliation of our total segment gross operating margin to operating income and income before provision for income taxes, minority interest and the cumulative effect of change in accounting principle follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="77" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="77" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total segment gross operating margin </font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;363,721</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;399,741</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,061,568</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,022,888</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Adjustments to reconcile total segment gross operating margin</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>to operating income:</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Depreciation, amortization and accretion in operating costs and expenses</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(133,869)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(112,412)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(374,522)</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(325,180)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating lease expense paid by EPCO</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(526)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(526)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,579)</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,582)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Gain (loss) on sale of assets in operating costs and expenses</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>219</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,204</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(5,445)</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,401</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>General and administrative costs</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(18,715)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(15,823)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(66,706)</font></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(45,798)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Consolidated operating income</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>210,830</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>274,184</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>613,316</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>653,729</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other expense, net</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(83,369)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(60,657)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(213,327)</font></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(169,705)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before provision for income taxes, minority interest</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>and cumulative effect of change in accounting principle</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;127,461</font></p> </td>
        <td width="77" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;213,527</font></p> </td>
        <td width="77" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399,989</font></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;484,024</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>30</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Information by segment, together with reconciliations to our consolidated totals, is presented in the following table:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="4" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Reportable Segments</font></b></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Onshore</font></b></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=1>NGL</font></B></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Natural Gas</font></b></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Offshore</font></b></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Adjustments</font></b></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Pipelines</font></b></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Pipelines</font></b></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Pipelines</font></b></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Petrochemical</font></b></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>and</font></b></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Consolidated</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>&amp; Services</font></b></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>&amp; Services</font></b></p> </td>
        <td width="72"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>&amp; Services</font></b></p> </td>
        <td width="80"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Services</font></b></p> </td>
        <td width="75"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Eliminations</font></b></p> </td>
        <td width="74"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Totals</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Revenues from third parties:</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;2,873,937</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;428,807</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;54,444</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;575,969</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;3,933,157</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,797,651</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>341,537</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>53,936</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>547,038</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,740,162</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8,261,659</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,304,239</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>142,557</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,559,887</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,268,342</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,689,559</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,062,948</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>105,794</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,446,279</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>10,304,580</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Revenues (losses) from related parties:</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>93,204</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>86,704</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,069)</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>178,839</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>48,699</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>83,521</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>143</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>132,363</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>169,262</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>209,807</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>236</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>379,314</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>92,748</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>242,390</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>734</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>335,872</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Intersegment and intrasegment revenues:</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,265,697</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>57,635</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>484</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>132,844</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,456,660)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,105,719</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>30,377</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>484</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>101,452</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,238,032)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,540,347</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>119,121</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,531</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>360,885</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(4,021,884)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,079,511</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>90,106</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,187</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>287,718</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(3,458,522)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total revenues:</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,232,838</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>573,146</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>53,859</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>708,813</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,456,660)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,111,996</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,952,069</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>455,435</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>54,563</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>648,490</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,238,032)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,872,525</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,971,268</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,633,167</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>144,324</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,920,781</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(4,021,884)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,647,656</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>10,861,818</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,395,444</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>107,715</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,733,997</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(3,458,522)</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>10,640,452</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Equity in income (loss) of unconsolidated affiliates:</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,684</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,351</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8,557</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>368</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,960</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,422</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>794</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(330)</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>379</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,265</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,364</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,592</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,786</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,186</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,928</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,864</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,300</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,373</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>769</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14,306</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Gross operating margin by individual </font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>business segment and in total:</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>190,209</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>75,424</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>46,676</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>51,412</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>363,721</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Three months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>232,037</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>77,489</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>38,364</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>51,851</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>399,741</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>589,708</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>235,102</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>97,429</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>139,329</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,061,568</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nine months ended September 30, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>549,401</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>260,943</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>76,131</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>136,413</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,022,888</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Segment assets:</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>4,037,990</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,683,821</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,450,786</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>673,448</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,287,350</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,133,395</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At December 31, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,249,486</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,611,974</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>734,659</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>502,345</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,734,083</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,832,547</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investments in and advances</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>to unconsolidated affiliates (see Note 7):</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>120,294</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>228,342</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>488,140</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>18,049</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>854,825</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At December 31, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>111,229</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>124,591</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>310,136</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>18,603</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>564,559</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Intangible Assets (see Note 8):</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>382,579</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>361,995</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>137,643</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>45,984</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>928,201</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At December 31, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>417,950</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>386,149</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>152,376</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>47,480</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,003,955</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Goodwill (see Note 8):</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At September 30, 2007</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>153,698</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>282,121</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>82,135</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>73,690</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>591,644</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="17"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="205"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>At December 31, 2006</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>152,595</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>282,121</font></p> </td>
        <td width="72"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>82,135</font></p> </td>
        <td width="80"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>73,690</font></p> </td>
        <td width="75"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="74"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>590,541</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>31</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>The following table summarizes the contribution to consolidated revenues from the sale of NGL, natural gas and petrochemical products for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="571" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="65" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="65" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="65" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="83" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="83" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NGL Pipelines &amp; Services:</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of NGL products</font></p> </td>
        <td width="115" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;2,837,465</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;2,640,568</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;7,952,147</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;7,276,342</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of consolidated revenues</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>69%</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>68%</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>68%</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>68%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Onshore Natural Gas Pipelines &amp; Services:</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of natural gas</font></p> </td>
        <td width="115" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>406,482</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:16.7pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>312,116</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,190,235</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:12.3pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>943,480</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of consolidated revenues</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10%</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8%</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10%</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Petrochemical Services:</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of petrochemical products</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>444,670</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:14.05pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>417,395</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,268,731</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,157,184</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of consolidated revenues</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 12.  Related Party Transactions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes our related party transactions for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=1>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="665" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="95" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="95" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Revenues from consolidated operations:</font></b></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>EPCO and affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91,630</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47,812</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;164,299</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86,892</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unconsolidated affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>87,209</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>84,551</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215,015</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>248,980</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;178,839</font></p> </td>
        <td width="95" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;132,363</font></p> </td>
        <td width="95" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;379,314</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;335,872</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Operating costs and expenses:</font></b></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>EPCO and affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74,910</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78,570</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;228,264</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;244,632</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unconsolidated affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,414</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,523</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>22,628</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19,113</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81,324</font></p> </td>
        <td width="95" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,093</font></p> </td>
        <td width="95" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;250,892</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;263,745</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>General and administrative costs:</font></b></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>EPCO and affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,504</font></p> </td>
        <td width="95" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,728</font></p> </td>
        <td width="95" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,292</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,566</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We believe that the terms and provisions of our related party agreements are fair to us; however, such agreements and transactions may not be as favorable to us as we could have obtained from unaffiliated third parties.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Relationship with EPCO and affiliates</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have an extensive and ongoing relationship with EPCO and its affiliates, which include the following significant entities that are not part of our consolidated group of companies:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>


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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>EPCO and its private company subsidiaries;</font></p> </td> </tr></table>
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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Enterprise Products GP, our sole general partner;</font></p> </td> </tr></table>
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    <tr >
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Enterprise GP Holdings, which owns and controls our general partner;</font></p> </td> </tr></table>
</div>



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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>TEPPCO and TEPPCO GP, which are controlled by Enterprise GP Holdings; </font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Employee Partnerships (see Note 3); and</font></p> </td> </tr></table>
</div>



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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Energy Transfer Equity.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We also have an ongoing relationship with Duncan Energy Partners, the financial statements of which are consolidated with those of our own.  Our transactions with Duncan Energy Partners are eliminated in consolidation; therefore, they are not part of the totals presented in the preceding table.  A description of our relationship with Duncan Energy Partners is presented within this Note 12.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>EPCO is a private company controlled by Dan L. Duncan, who is also a director and Chairman of Enterprise Products GP, our general partner.  At September 30, 2007, EPCO and its affiliates beneficially </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>32</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>owned 147,870,309 (or 34.0%) of our outstanding common units, which include 13,454,498 of our common units owned by Enterprise GP Holdings.  In addition, at September 30, 2007, EPCO and its affiliates beneficially owned 77.1% of the limited partner interests of Enterprise GP Holdings and 100% of its general partner, EPE Holdings.  Enterprise GP Holdings owns all of the membership interests of Enterprise Products GP.  The principal business activity of Enterprise Products GP is to act as our managing partner.  The executive officers and certain of the directors of Enterprise Products GP and EPE Holdings are employees of EPCO.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In connection with its general partner interest in us, Enterprise Products GP received cash distributions of $91.6 million and $73.5 million from us during the nine months ended September 30, 2007 and 2006, respectively.  These amounts include incentive distributions of $79.0 million and $62.5 million for the nine months ended September 30, 2007 and 2006, respectively.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We and Enterprise Products GP are both separate legal entities apart from each other and apart from EPCO, Enterprise GP Holdings and their respective other affiliates, with assets and liabilities that are separate from those of EPCO, Enterprise GP Holdings and their respective other affiliates.  EPCO and its private company subsidiaries depend on the cash distributions they receive from us, Enterprise GP Holdings and other investments to fund their other operations and to meet their debt obligations.  Enterprise GP Holdings, EPCO and its private company affiliates received $260.7 million and $225.5 million in cash distributions from us during the nine months ended September 30, 2007 and 2006, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The ownership interests in us that are owned or controlled by Enterprise GP Holdings are pledged as security under its credit facility.  In addition, substantially all of the ownership interests in us that are owned or controlled by EPCO and its affiliates, other than those interests owned by Enterprise GP Holdings, Dan Duncan LLC and certain trusts affiliated with Dan L. Duncan, are pledged as security under the credit facility of a private company affiliate of EPCO.  This credit facility contains customary and other events of default relating to EPCO and certain affiliates, including Enterprise GP Holdings, us and TEPPCO.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have entered into an agreement with EPCO to provide trucking services to us for the transportation of NGLs and other products.  We also lease office space in various buildings from affiliates of EPCO.  The rental rates in these lease agreements approximate market rates.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Historically, we entered into transactions with a Canadian affiliate of EPCO for the purchase and sale of NGL products in the normal course of business.  These transactions were at market-related prices.  We acquired this affiliate in October 2006 and began consolidating its financial statements with those of our own from the date of acquisition.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>EPCO Administrative Services Agreement</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have no employees.  All of our management, administrative and operating functions are performed by employees of EPCO pursuant to an administrative services agreement (the &#147;ASA&#148;).  We and our general partner, Enterprise GP Holdings and its general partner, Duncan Energy Partners and its general partner, and TEPPCO and its general partner, among other affiliates, are parties to the ASA.  The ACG Committees of each general partner have approved the ASA.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Under the ASA, we reimburse EPCO for all costs and expenses it incurs in providing management, administrative and operating services to us.  The ASA also addresses potential conflicts in business opportunities that may arise among us, Enterprise GP Holdings, Duncan Energy Partners and other affiliates of EPCO.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Relationship with TEPPCO</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We received $12.7 million and $14.0 million from TEPPCO during the three months ended September 30, 2007 and 2006, respectively, primarily from the sale of NGLs.  We received $42.8 million and $31.1 million from TEPPCO during the nine months ended September 30, 2007 and 2006, respectively, </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>33</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>primarily from the sale of NGLs.  We paid TEPPCO $4.5 million and $7.1 million for NGL pipeline transportation and storage services during the three months ended September 30, 2007 and 2006, respectively.  We paid TEPPCO $13.8 million and $17.7 million for NGL pipeline transportation and storage services during the nine months ended September 30, 2007 and 2006, respectively.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Purchase and lease of pipelines for DEP South Texas NGL Pipeline System from TEPPCO</font></i></u><i><font size=2>.   </font></i><font size=2>In January 2007, we purchased a 10-mile segment of pipeline from TEPPCO located in the Houston area for $8.0 million that is part of the DEP South Texas NGL Pipeline System.  In addition, we entered into a lease with TEPPCO for an 11-mile interconnecting pipeline located in the Houston area.  The primary term of this lease expired in September 2007 and continues on a month-to-month basis subject to termination by either party upon 60 days notice.  This pipeline is being leased by a subsidiary of Duncan Energy Partners in connection with operations on its DEP South Texas NGL Pipeline System until construction of a parallel pipeline is completed in the first quarter of 2008. </font><b><font size=2> </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Jonah Joint Venture with TEPPCO</font></i></u><i><font size=2>.  </font></i><font size=2>In August 2006, we formed a joint venture with TEPPCO to be partners in TEPPCO&#146;s Jonah Gas Gathering Company, or Jonah.  Jonah owns the Jonah Gas Gathering System (the &#147;Jonah Gathering System&#148;), located in the Greater Green River Basin of southwestern Wyoming.  The Jonah Gathering System gathers and transports natural gas produced from the Jonah and Pinedale fields to regional natural gas processing plants and major interstate pipelines that deliver natural gas to end-user markets.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Prior to entering into the Jonah joint venture, we managed the construction of the Phase V expansion and funded the initial construction costs under a letter of intent we signed in February 2006.  In connection with the joint venture arrangement, we and TEPPCO will continue the Phase V expansion, which is expected to increase the capacity of the Jonah Gathering System from 1.5 Bcf/d to 2.3 Bcf/d.  The Phase V expansion is also expected to significantly reduce system operating pressures, which we anticipate will lead to increased production rates and ultimate reserve recoveries.  The first portion of the expansion, which is expected to increase the system gathering capacity to 2.0 Bcf/d, was completed in July 2007.  The second portion of the expansion is expected to be completed by the first quarter of 2008.  We will operate the Jonah Gathering System.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We manage the Phase V construction project.  TEPPCO is entitled to all distributions from the joint venture until specified milestones are achieved, at which point, we will be entitled to receive 50% of the incremental cash flow from portions of the system placed in service as part of the expansion.  After subsequent milestones are achieved, we and TEPPCO will share distributions based on a formula that takes into account the respective capital contributions of the parties, including expenditures by TEPPCO prior to the expansion.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Since August 1, 2006, we and TEPPCO equally share in the construction costs of the Phase V expansion.  TEPPCO has reimbursed us $208.8 million for its share of the Phase V costs.  At September 30, 2007, we had a receivable from TEPPCO of $13.0 million for additional Phase V costs incurred through September 30, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Upon completion of the expansion project and based on the formula in the joint venture partnership agreement, we expect to own an interest in Jonah of approximately 20%, with TEPPCO owning the remaining 80%.  Phase I of this expansion project was completed in July 2007, thus at September 30, 2007, we and TEPPCO owned and shared earnings of approximately 19.4% interest and 80.6% interest, respectively, in Jonah.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The joint venture is governed by a management committee comprised of two representatives approved by us and two representatives appointed by TEPPCO, each with equal voting power.  After an in-depth consideration of all relevant factors, this transaction was approved by the Audit, Conflicts and Governance Committee of our general partner and that of TEPPCO GP.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>34</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Relationship with Energy Transfer Equity</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Enterprise GP Holdings acquired equity method investments in Energy Transfer Equity and its general partner in May 2007.  As a result, Energy Transfer Equity and its consolidated subsidiaries became related parties to our consolidated businesses.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For the three and five months ended September 30, 2007, we recorded $79.0 million and $121.5 million of revenues from Energy Transfer Partners, L.P. (&#147;ETP&#148;), primarily from NGL marketing activities.  We incurred $2.6 million and $8.4 million in operating costs and expenses for the three and five months ended September 30, 2007.  We have a long-term revenue generating contract with Titan Energy Partners, L.P. (&#147;Titan&#148;), a consolidated subsidiary of ETP.  Titan purchases substantially all of its propane requirements from us.  The contract continues until March&nbsp;31, 2010 and contains renewal and extension options.  We and Energy Transfer Company (&#147;ETC OLP&#148;) transport natural gas on each other&#146;s systems and share operating expenses on certain pipelines.  ETC OLP also sells natural gas to us.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Relationship with Duncan Energy Partners</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For financial reporting purposes, we consolidate the financial statements of Duncan Energy Partners with those of our own and reflect its operations in our business segments.  All intercompany transactions between us and Duncan Energy Partners are eliminated in the preparation of our consolidated financial statements. Also, due to common control of the entities by Dan L. Duncan, the initial consolidated balance sheet of Duncan Energy Partners reflects our historical carrying basis in each of the subsidiaries contributed to Duncan Energy Partners. Public ownership of Duncan Energy Partners&#146; net assets and earnings are presented as a component of minority interest in our consolidated financial statements.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The borrowings of Duncan Energy Partners are presented as part of our consolidated debt; however, we do not have any obligation for the payment of interest or repayment of borrowings incurred by Duncan Energy Partners.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On February 5, 2007, Duncan Energy Partners completed its initial public offering of 14,950,000 common units (including an overallotment amount of 1,950,000 common units) at $21.00 per unit, which generated net proceeds to Duncan Energy Partners of $291.9 million.  As consideration for assets contributed and reimbursement for capital expenditures related to these assets, Duncan Energy Partners distributed $260.6 million of these net proceeds to us along with $198.9 million in borrowings under its credit facility and a final amount of 5,351,571 common units of Duncan Energy Partners. Duncan Energy Partners used $38.5 million of net proceeds from the overallotment to redeem 1,950,000 of the 7,301,571 common units it had originally issued to Enterprise Products Partners, resulting in the final amount of 5,351,571 common units beneficially owned by Enterprise Products Partners.  We used the
cash received from Duncan Energy Partners to temporarily reduce amounts outstanding under EPO&#146;s Multi-Year Revolving Credit Facility.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We contributed 66% of our equity interests in the following subsidiaries to Duncan Energy Partners:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mont Belvieu Caverns, LLC (&#147;Mont Belvieu Caverns&#148;), which owns salt dome storage caverns located in Mont Belvieu, Texas that receive, store and deliver NGLs and certain petrochemical products for industrial customers located along the upper Texas Gulf Coast, which has the largest concentration of petrochemical plants and refineries in the United States;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p  style='text-align:justify'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Acadian Gas, LLC (&#147;Acadian Gas&#148;), which owns an onshore natural gas pipeline system that gathers, transports, stores and markets natural gas in Louisiana.  The Acadian Gas system links natural gas supplies from onshore and offshore Gulf of Mexico developments (including offshore pipelines, continental shelf and deepwater production) with local gas distribution companies, electric generation plants and industrial customers, including those in the Baton Rouge-New Orleans-Mississippi River corridor.  A subsidiary of Acadian Gas owns our 49.5% equity interest in Evangeline;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>35</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p  style='text-align:justify'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sabine Propylene Pipeline L.P. (&#147;Sabine Propylene&#148;), which transports polymer-grade propylene between Port Arthur, Texas and a pipeline interconnect located in Cameron Parish, Louisiana;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p  style='text-align:justify'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Enterprise Lou-Tex Propylene Pipeline L.P. (&#147;Lou-Tex Propylene&#148;), which transports chemical-grade propylene from Sorrento, Louisiana to Mont Belvieu, Texas; and</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="25" valign=top >
            <p  style='text-align:justify'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>South Texas NGL Pipelines, LLC (&#147;South Texas NGL&#148;), which began transporting NGLs from Corpus Christi, Texas to Mont Belvieu, Texas in January 2007.  South Texas NGL owns the DEP South Texas NGL Pipeline System.  </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In addition to the 34% direct ownership interest we retained in such entities, we also own the 2% general partner interest in Duncan Energy Partners and 26.4% of Duncan Energy Partners&#146; outstanding common units at September 30, 2007.  Accordingly, we have in effect retained a net economic interest of approximately 52.7% in Duncan Energy Partners as of September 30, 2007.  EPO directs the business operations of Duncan Energy Partners indirectly through its ownership and control of the general partner of Duncan Energy Partners.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have significant involvement with all of the subsidiaries of Duncan Energy Partners, including the following types of transactions:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>We utilize storage services provided by Mont Belvieu Caverns to support our Mont Belvieu fractionation and other businesses;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>We buy natural gas from and sell natural gas to Acadian Gas in connection with its normal business activities; and</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>We are currently the sole shipper on the DEP South Texas NGL Pipeline System.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We may contribute or sell other equity interests in our subsidiaries to Duncan Energy Partners and use the proceeds we receive from Duncan Energy Partners to fund our capital spending program.  We have no obligation or commitment to make such contributions or sales to Duncan Energy Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In September 2007, Enterprise Texas Pipeline LLC, a wholly owned subsidiary of EPO, purchased certain parcels of land and regulatory permits from Mont Belvieu Caverns for $3.2 million.  Due to common control considerations, the approximate $3.2 million excess of the proceeds received from EPO over the carrying value of assets sold was recorded as a general contribution by Mont Belvieu Caverns.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Relationships with Unconsolidated Affiliates</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our significant related party revenue and expense transactions with unconsolidated affiliates consist of the sale of natural gas to Evangeline and the purchase of NGL storage, transportation and fractionation services from Promix.  In addition, we sell natural gas to Promix and process natural gas at VESCO.   For additional information regarding our unconsolidated affiliates, see Note 7.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>See &#147;Relationship with TEPPCO&#148; within this Note 12 for a description of ongoing transactions involving our Jonah joint venture with TEPPCO.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Note 13.  Earnings Per Unit</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Basic earnings per unit is computed by dividing net income or loss allocated to limited partner interests by the weighted-average number of distribution-bearing units outstanding during a period.  Diluted earnings per unit is computed by dividing net income or loss allocated to limited partner interests by the sum of (i) the weighted-average number of distribution-bearing units outstanding during a period (as used in determining basic earnings per unit); (ii) the weighted-average number of performance-based </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>36</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>phantom units outstanding during a period; and (iii) the number of incremental common units resulting from the assumed exercise of dilutive unit options outstanding during a period (the &#147;incremental option units&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In a period of net operating losses, restricted units, phantom units and incremental option units are excluded from the calculation of diluted earnings per unit due to their antidilutive effect.  The dilutive incremental option units are calculated using the treasury stock method, which assumes that proceeds from the exercise of all in-the-money options at the end of each period are used to repurchase common units at an average market value during the period.  The amount of common units remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The amount of net income or loss allocated to limited partner interests is net of our general partner&#146;s share of such earnings.  The following table presents the allocation of net income to Enterprise Products GP for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="303" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="303" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="303" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="303" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;117,606</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;208,302 </font></p> </td>
        <td width="84" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;371,805</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;468,374</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Less incentive earnings allocations to Enterprise Products GP</font></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(27,394)</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(22,386)</font></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(78,964)</font></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(62,497)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income available after incentive earnings allocation</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>90,212</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>185,916</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>292,841</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>405,877</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Multiplied by Enterprise Products GP ownership interest</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.0%</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.0%</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.0%</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.0%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Standard earnings allocation to Enterprise Products GP</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,804</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,718</font></p> </td>
        <td width="84" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,857</font></p> </td>
        <td width="84" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,118</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="23" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="303" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Incentive earnings allocation to Enterprise Products GP</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,394</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,386 </font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78,964</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,497</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Standard earnings allocation to Enterprise Products GP</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,804</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,718</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,857</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,118</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Enterprise Products GP interest in net income</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,198</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,104</font></p> </td>
        <td width="84" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84,821</font></p> </td>
        <td width="84" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70,615</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>37</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents our calculation of basic and diluted earnings per unit for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=1>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>and Enterprise Products GP interest</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;117,606</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;208,302</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;371,805</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;466,899</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cumulative effect of change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,475</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net income</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>117,606</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>208,302</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>371,805</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>468,374</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Enterprise Products GP interest in net income</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(29,198)</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(26,104)</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(84,821)</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(70,615)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net income available to limited partners</font></p> </td>
        <td width="88"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,408</font></p> </td>
        <td width="88"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;182,198</font></p> </td>
        <td width="88" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;286,984</font></p> </td>
        <td width="88" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;397,759</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font size=1>BASIC EARNINGS PER UNIT</font></B></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Numerator</font></b></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>and Enterprise Products GP interest</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;117,606</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;208,302</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;371,805</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;466,899</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cumulative effect of change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,475</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Enterprise Products GP interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(29,198)</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(26,104)</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(84,821)</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(70,615)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Limited partners&#146; interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,408</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;182,198</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;286,984</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;397,759</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Denominator</font></b></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Common units</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>432,805</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>418,790</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>432,221</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>407,539</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Time-vested restricted units</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,645</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,064</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,364</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>930</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>434,450</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>419,854</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>433,585</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>408,469</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Basic earnings per unit</font></b></p> </td>
        <td width="88"  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before change in accounting principle </font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>and Enterprise Products GP interest</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.27</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.50</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.86</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cumulative effect of change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Enterprise Products GP interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.07)</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.07)</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.20)</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.17)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Limited partners&#146; interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.20</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.43</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.66</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.97</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font size=1>DILUTED EARNINGS PER UNIT</font></B></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Numerator</font></b></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before change in accounting principle </font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>and Enterprise Products GP interest</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;117,606</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;208,302</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;371,805</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;466,899</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cumulative effect of change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,475</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Enterprise Products GP interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(29,198)</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(26,104)</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(84,821)</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(70,615)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Limited partners&#146; interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,408</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;182,198</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;286,984</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;397,759</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Denominator</font></b></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Common units </font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>432,805</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>418,790</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>432,221</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>407,539</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Time-vested restricted units </font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,645</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,064</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,364</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>930</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Performance-based restricted units</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>16</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>23</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Incremental option units</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>354</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>332</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>480</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>271</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="88"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>434,813</font></p> </td>
        <td width="88" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>420,202</font></p> </td>
        <td width="88" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>434,074</font></p> </td>
        <td width="88"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>408,763</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Diluted earnings per unit</font></b></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>and Enterprise Products GP interest</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.27</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.50</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.86</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cumulative effect of change in accounting principle</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="88"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Enterprise Products GP interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.07)</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.07)</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.20)</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.17)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="302"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Limited partners&#146; interest in net income</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.20</font></p> </td>
        <td width="88" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.43</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.66</font></p> </td>
        <td width="88"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.97</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 14.  Commitments and Contingencies</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Litigation</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On occasion, we or our unconsolidated affiliates are named as defendants in litigation relating to our normal business activities, including regulatory and environmental matters.  Although we are insured against various business risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify us against liabilities arising from future legal proceedings as a result of our ordinary business activities.  We are unaware of any significant </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>38</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>litigation, pending or threatened, that could have a significant adverse effect on our financial position, cash flows or results of operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On September 18, 2006, Peter Brinckerhoff, a purported unitholder of TEPPCO, filed a complaint in the Court of Chancery of New Castle County in the State of Delaware, in his individual capacity, as a putative class action on behalf of other unitholders of TEPPCO, and derivatively on behalf of TEPPCO, concerning, among other things, certain transactions involving TEPPCO and us or our affiliates.&nbsp; Mr. Brinkerhoff filed an amended complaint on July 12, 2007. The amended complaint names as defendants (i) TEPPCO, its current and certain former directors, and certain of its affiliates; (ii) us and certain of our affiliates; (iii) EPCO, Inc.; and (iv) Dan L. Duncan.&nbsp; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The amended complaint alleges, among other things, that the defendants have caused TEPPCO to enter into certain transactions with us or our affiliates that were unfair to TEPPCO or otherwise unfairly favored us or our affiliates over TEPPCO.&nbsp; These transactions are alleged to include the joint venture to further expand the Jonah Gathering System entered into by TEPPCO and one of our affiliates in August 2006 and the sale by TEPPCO to one of our affiliates of the Pioneer gas processing plant in March 2006. The amended complaint seeks (i) rescission of these transactions or an award of rescissory damages with respect thereto; (ii) damages for profits and special benefits allegedly obtained by defendants as a result of the alleged wrongdoings in the amended complaint; and (iii) awarding plaintiff costs of the action, including fees and expenses of his attorneys and experts.  We believe
this lawsuit is without merit and intend to vigorously defend against it.  See Note 12 for additional information regarding our relationship with TEPPCO.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On February 13, 2007, EPO received notice from the U.S. Department of Justice (&#147;DOJ&#148;) that it was the subject of a criminal investigation related to an ammonia release in Kingman County, Kansas on October 27, 2004 from a pressurized anhydrous ammonia pipeline owned by a third party, Magellan Ammonia Pipeline, L.P. (&#147;Magellan&#148;).  EPO is the operator of this pipeline.  On February 14, 2007, EPO received a letter from the Environment and Natural Resources Division (&#147;ENRD&#148;) of the DOJ regarding this incident and a previous release of ammonia on September 27, 2004 from the same pipeline.&nbsp; The ENRD has indicated that it may pursue civil damages against EPO and Magellan as a result of these incidents.&nbsp; Based on this correspondence from the ENRD, the statutory maximum amount of civil fines that could be assessed against EPO and Magellan is up to $17.4
million in the aggregate. EPO is cooperating with the DOJ and is hopeful that an expeditious resolution of this civil matter acceptable to all parties will be reached in the near future.&nbsp; Magellan has agreed to indemnify EPO for the civil matter.  On September 4, 2007, we and the DOJ entered into a plea agreement whereby a wholly-owned subsidiary of EPO, Mapletree, LLC, pleaded guilty to a misdemeanor charge of negligence in connection with the releases and paid a fine of $1.0 million. The plea agreement concludes the DOJ's criminal investigation into the ammonia releases.  At this time, we do not believe that a final resolution of the civil claims by the ENRD will have a material impact on our consolidated financial position, cash flows or results of operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On October&nbsp;25, 2006, a rupture in the Magellan Ammonia Pipeline resulted in the release of ammonia near Clay Center, Kansas. The pipeline has been repaired and environmental remediation tasks related to this incident have been completed.  At this time, we do not believe that this incident will have a material impact on our consolidated financial position, cash flows or results of operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Several lawsuits have been filed by municipalities and other water suppliers against a number of manufacturers of reformulated gasoline containing methyl tertiary butyl ether.  In general, such suits have not named manufacturers of this product as defendants, and there have been no such lawsuits filed against our subsidiary that owns an octane-additive production facility.  It is possible, however, that former manufacturers such as our subsidiary could ultimately be added as defendants in such lawsuits or in new lawsuits.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Operating Leases</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We lease certain property, plant and equipment under noncancelable and cancelable operating leases.  Our significant lease agreements involve (i) the lease of underground caverns for the storage of </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>39</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>natural gas and NGLs, (ii) leased office space with an affiliate of EPCO, and (iii) land held pursuant to right-of-way agreements.  In general, our material lease agreements have original terms that range from 14 to 20 years and include renewal options that could extend the agreements for up to an additional 20 years.  Lease expense is charged to operating costs and expenses on a straight line basis over the period of expected economic benefit.  Contingent rental payments are expensed as incurred. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There have been no material changes in our operating lease commitments since December 31, 2006, except for the commitments associated with a new natural gas storage lease.  In order to provide firm natural gas transportation and storage services under long-term agreements with CenterPoint Energy Resources Corp. (&#147;CenterPoint Energy&#148;) in Houston, Texas, we entered into a 2-year agreement during the second quarter of 2007 for firm natural gas storage capacity in Texas.  Our rental payments under the lease are at a fixed rate.  Contingent rental payments are based upon the actual volume of natural gas we inject or withdraw from the storage cavern over the term of the lease agreement.  The incremental future minimum lease payments associated with our new natural gas storage lease are $3.7 million in 2007, $4.9 million in 2008 and $1.2 million in 2009.  CenterPoint Energy will
reimburse us for the costs we incur associated with this natural gas storage lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Lease and rental expense included in operating costs and expenses was $9.1 million and $10.3 million during the three months ended September 30, 2007 and 2006, respectively.  For the nine months ended September 30, 2007 and 2006, lease and rental expense included in operating costs and expenses was $28.9 million and $30.0 million, respectively.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Contractual Obligations</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>With the exception of the debt incurred by Duncan Energy Partners in connection with its initial public offering and the issuance of Junior Notes B and Senior Notes L by EPO, there have been no significant changes in our consolidated scheduled maturities of long-term debt since those reported in our annual report on Form 10-K for the year ended December 31, 2006.  See Note 9 for additional information regarding the debt obligations of Duncan Energy Partners and the issuance of Junior Notes B and Senior Notes L.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Performance Guaranty</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In December 2004, a subsidiary of ours entered into the Independence Hub Agreement with six oil and natural gas producers.  We guaranteed to the producers the construction-related performance of our subsidiary up to an amount of $340.8 million. The performance guaranty expired during the second quarter of 2007. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Other Claims</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As part of our normal business activities with joint venture partners and certain customers and suppliers, we occasionally make claims against such parties or have claims made against us as a result of disputes related to contractual agreements or similar arrangements.  As of September 30, 2007, our contingent asserted claims against such parties were approximately $2.2 million and asserted claims against us for various periods were approximately $35.5 million.  These matters are in various stages of assessment and the ultimate outcome of such disputes cannot be reasonably estimated.  Such asserted claim amounts may increase or decrease depending on the ultimate resolution of these matters.  However, in our opinion, the likelihood of a material adverse outcome related to disputes against us is remote.  Accordingly, accruals for loss contingencies related to these matters, if any, that
might result from the resolution of such disputes have not been reflected in our consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<BR>

<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="440" style='border-collapse:collapse'>
    <tr >
        <td width="16" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Note 15.  </font></b></p> </td>
        <td width="367" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Significant Risks and Uncertainties &#150; Weather-Related Risks</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following is a discussion of the general status of our insurance claims related to recent significant storm events.  To the extent we include any estimate or range of estimates regarding the dollar </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>40</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>value of damages, please be aware that a change in our estimates may occur as additional information becomes available.  To the extent we receive nonrefundable cash proceeds from business interruption insurance claims, they are recorded as revenue in our Unaudited Condensed Statements of Consolidated Operations in the period of receipt.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Hurricane Ivan insurance claims</font></i></u><i><font size=2>.  </font></i><font size=2>We have submitted business interruption insurance claims for our estimated losses caused by Hurricane Ivan, which struck the eastern U.S. Gulf Coast region in September 2004.  We are continuing our efforts to collect residual balances and expect to complete the process during 2007.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Hurricanes Katrina and Rita insurance claims</font></i></u><i><font size=2>.  </font></i><font size=2>Hurricanes Katrina and Rita, both significant storms, affected certain of our Gulf Coast assets in August and September of 2005, respectively.  We continue to pursue collection of our property damage and business interruption claims related to Hurricanes Katrina and Rita.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes the proceeds we received for the three and nine months ended September 30, 2007 and 2006 from business interruption and property damage insurance claims with respect to certain named storms:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="511" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Business interruption proceeds:</font></b></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hurricane Ivan</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,157</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;377</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;17,383</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hurricane Katrina</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,301</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>24,325</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14,500</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>24,325</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hurricane Rita</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>743</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20,740</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,000</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20,740</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>996</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="175" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total proceeds</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,044</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:14.05pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>50,222</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>24,873</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:14.05pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>62,448</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="3" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Property damage proceeds:</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hurricane Ivan</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:32.5pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,273</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>24,104</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hurricane Katrina</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,975</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,563</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,975</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hurricane Rita</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,730</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,730</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>184</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="175" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total proceeds</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>--</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:18.45pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,705</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,020</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:14.05pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>33,809</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;2,044</font></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;59,927</font></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;32,893</font></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;96,257</font></p> </td> </tr>
    <tr>
        <td width="24" ></td>

        <td width="24" ></td>

        <td width="175" ></td>

        <td width="72" ></td>

        <td width="72" ></td>

        <td width="72" ></td>

        <td width="72" ></td> </tr> </table>
            </div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 16.  Supplemental Cash Flow Information</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our Unaudited Condensed Statements of Consolidated Cash Flows are prepared using the indirect method.  The indirect method derives net cash flows from operating activities by adjusting net income to remove (i) the effects of all deferrals of past operating cash receipts and payments, such as changes during the period in inventory, deferred income and similar transactions, (ii) the effects of all accruals of expected future operating cash receipts and cash payments, such as changes during the period in receivables and payables, (iii) the effects of all items classified as investing or financing cash flows, such as gains or losses on sale of property, plant and equipment or extinguishment of debt, and (iv) other non-cash amounts such as depreciation, amortization and changes in the fair market value of financial instruments.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>41</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The net effect of changes in operating assets and liabilities is as follows for the periods indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="461" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Decrease (increase) in:</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts and notes receivable </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;(281,949)</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,878</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Inventories</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(170,610)</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(122,672)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Prepaid and other current assets</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(41,171)</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(42,597)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other assets</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,719</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,229)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Increase (decrease) in:</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts payable </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>61,106</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,799</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued product payables</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>354,508</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>63,667</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued expenses</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>152,534</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>63,500</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued interest</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,020</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,334</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other current liabilities</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>26,110</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100,858</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="264" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other long-term liabilities</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(4,995)</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,689)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net effect of changes in operating accounts</font></p> </td>
        <td width="88" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110,272</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;159,849</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Contributions in aid of construction costs</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Third parties may be obligated to reimburse us for all or a portion of expenditures on certain of our capital projects.  The majority of such arrangements are associated with projects related to pipeline construction and production well tie-ins.  We received $52.5 million and $63.7 million as contributions in aid of our construction costs during the nine months ended September 30, 2007 and 2006, respectively.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Cash used for business combinations &#150; Encinal Acquisition in July 2006</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In July 2006, we acquired the Encinal and Canales natural gas gathering systems and related gathering and processing contracts that comprised the South Texas natural gas transportation and processing business of an affiliate of Lewis Energy Group, L.P. (&#147;Lewis&#148;).  The aggregate value of total consideration we paid or issued to complete this business combination (referred to as the &#147;Encinal acquisition&#148;) was $326.3 million, which consisted of $145.2 million in cash and 7,115,844 of our common units.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Encinal and Canales gathering systems are located in South Texas and are connected to over 1,450 natural gas wells producing from the Olmos and Wilcox formations.  The Encinal system consists of 452 miles of pipeline, which consists of 280 miles of pipeline we acquired from Lewis in this transaction and 172 miles of pipeline that we own and had previously leased to Lewis.  The Canales gathering system is comprised of 32 miles of pipeline.  Currently, natural gas volumes gathered by the Encinal and Canales systems are transported by our existing Texas Intrastate System and are processed by our South Texas natural gas processing plants.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<BR>

<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="328" style='border-collapse:collapse'>
    <tr >
        <td width="16" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="312" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Note 17.  Condensed Financial Information of EPO</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>EPO conducts substantially all of our business.  Currently, we have no independent operations and no material assets outside those of EPO.  EPO consolidates the financial statements of Duncan Energy Partners with those of its own.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We guarantee the consolidated debt obligations of EPO with the exception of the Dixie revolving credit facility, Duncan Energy Partners&#146; credit facility and the senior subordinated notes assumed in connection with the GulfTerra Merger.  If EPO were to default on any debt we guarantee, we would be responsible for full repayment of that obligation.  See Note 9 for additional information regarding our consolidated debt obligations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>42</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The reconciling items between our consolidated financial statements and those of EPO are insignificant.  The following table presents condensed consolidated balance sheet data for EPO at the dates indicated:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="501" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="27" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="287" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30,</font></b></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>December 31,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="27" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="287" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=1>ASSETS</font></B></p> </td>
        <td width="96" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Current assets</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,418,232</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,915,937 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Property, plant and equipment, net</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,133,395</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:21.05pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,832,547</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investments in and advances to unconsolidated affiliates, net</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>854,825</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:25.45pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>564,559 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Intangible assets, net</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>928,201</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:21.05pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,003,955</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Goodwill</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>591,644</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:27.2pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>590,541 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Deferred tax asset</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,073</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:33.35pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,632 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other assets</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>80,358</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:30.7pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>74,103 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="27" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="287" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="96" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;16,008,728</font></p> </td>
        <td width="92" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;13,983,274 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="27" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="287" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>LIABILITIES AND PARTNERS&#146; EQUITY</font></b></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Current liabilities</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,479,205</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,986,444 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Long-term debt</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,771,988</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:21.05pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>5,295,590 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other long-term liabilities</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>102,354</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:30.7pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>99,845</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Minority interest</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>437,519</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>136,249 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Partners&#146; equity</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,217,662</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:14.95pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,465,146</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="27" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="287" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="96" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;16,008,728</font></p> </td>
        <td width="92" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;13,983,274</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="27" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="287" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total EPO debt obligations guaranteed by us</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,566,500</font></p> </td>
        <td width="92" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,314,000 </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents condensed consolidated statements of operations data for EPO for the periods indicated:</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="580" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="85" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="83" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Revenues</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4,111,996</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;3,872,525</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;11,647,656</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;10,640,452</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Costs and expenses</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,917,172</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,599,990</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11,046,151</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9,997,962</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Equity in income of  unconsolidated affiliates</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,960</font></p> </td>
        <td width="85" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,265</font></p> </td>
        <td width="83" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>13,928</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>14,306</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating income</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>208,784</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>274,800</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>615,433</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>656,796</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other expense</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(84,001)</font></p> </td>
        <td width="85" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(61,209)</font></p> </td>
        <td width="83" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(215,088)</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(171,134)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before provision for income taxes, minority </font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:3.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>interest and change in accounting principle</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>124,783</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>213,591</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>400,345</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>485,662</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Provision for income taxes</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(2,072)</font></p> </td>
        <td width="85" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(3,214)</font></p> </td>
        <td width="83" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(9,006)</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(12,378)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before minority interest and change in</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:3.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>accounting principle</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>122,711</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>210,377</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>391,339</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>473,284</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Minority interest</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(7,804)</font></p> </td>
        <td width="85" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(2,028)</font></p> </td>
        <td width="83" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(19,325)</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(4,761)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before change in  accounting principle</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>114,907</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>208,349</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>372,014</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>468,523</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cumulative effect of change in  accounting principle</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="85" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="83" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,475</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="244" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net income</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114,907</font></p> </td>
        <td width="85" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;208,349</font></p> </td>
        <td width="83" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;372,014</font></p> </td>
        <td width="84" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;469,998</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note 18.  Subsequent Event</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On November 1, 2007, Dixie experienced a rupture on its mainline near Carmichael, Mississippi.  The incident resulted in two fatalities and an undetermined number of injuries.  The cause of the incident is unknown; however, an investigation is underway by the Company and all appropriate governmental agencies.  The affected portion of the pipeline will not return to service until we and all appropriate governmental authorities have determined that it is safe to do so.  We currently expect operations to resume in the fourth quarter of 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>43</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 2.  </font></b><i><b><font size=2>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>For the three and nine months ended September 30, 2007 and 2006.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and our accompanying notes included under Item 1 of this quarterly report on Form 10-Q and with the information contained within our annual report on Form 10-K for the year ended December 31, 2006.  Our discussion and analysis includes the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cautionary Note Regarding Forward-Looking Statements.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Overview of Critical Accounting Policies and Estimates.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Overview of Business.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Recent Developments &#150; Discusses significant developments since December 31, 2006.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Results of Operations &#150; Discusses material period-to-period variances in our Unaudited Condensed Statements of Consolidated Operations.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Liquidity and Capital Resources &#150; Addresses available sources of liquidity and analyzes cash flows, including capital spending. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Items &#150; Includes information related to contractual obligations, off-balance sheet arrangements, related party transactions, recent accounting pronouncements and similar disclosures. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As generally used in the energy industry and in this discussion, the identified terms have the following meanings:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="257" style='border-collapse:collapse'>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/</font><font size=2>d</font></p> </td>
        <td width="65" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>= per day</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="355" style='border-collapse:collapse; '>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>BBtus</font></p> </td>
        <td width="163" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>= billion British thermal units</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="304" style='border-collapse:collapse'>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Bcf</font></p> </td>
        <td width="112" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>= billion cubic feet</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="340" style='border-collapse:collapse; '>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>MBPD</font></p> </td>
        <td width="148" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>= thousand barrels per day</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="292" style='border-collapse:collapse'>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>MMBbls</font></p> </td>
        <td width="100" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>= million barrels</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="359" style='border-collapse:collapse; '>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>MMBtus</font></p> </td>
        <td width="167" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>= million British thermal units</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="305" style='border-collapse:collapse; '>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>MMcf</font></p> </td>
        <td width="113" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>= million cubic feet</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (&#147;GAAP&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Unless the context requires otherwise, references to &#147;we,&#148; &#147;us,&#148; &#147;our&#148; or &#147;Enterprise Products Partners&#148; are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries, including Duncan Energy Partners L.P. (&#147;Duncan Energy Partners&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In addition, references to &#147;TEPPCO&#148; mean TEPPCO Partners, L.P., a publicly traded Delaware limited partnership, which is an affiliate of us.  References to &#147;TEPPCO GP&#148; refer to Texas Eastern Products Pipeline Company LLC, which is the general partner of TEPPCO and wholly owned by Enterprise GP Holdings L.P. (&#147;Enterprise GP Holdings&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>References to &#147;Energy Transfer Equity&#148; mean Energy Transfer Equity, L.P. and its consolidated affiliates, including Energy Transfer Partners, L.P.  References to &#147;ETEGP&#148; mean LE GP, LLC, which is the general partner of Energy Transfer Equity.  Enterprise GP Holdings acquired equity interests in Energy Transfer Equity and ETEGP in May 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>44</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Cautionary Note Regarding Forward-Looking Statements</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This discussion contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.  When used in this document, words such as &#147;anticipate,&#148; &#147;project,&#148; &#147;expect,&#148; &#147;plan,&#148; &#147;goal,&#148; &#147;forecast,&#148; &#147;intend,&#148; &#147;could,&#148; &#147;believe,&#148; &#147;may&#148; and similar expressions and statements regarding our plans and objectives for future operations, are intended to identify forward-looking statements.  Although we and our general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither we nor our general partner can give any assurances that such expectations will prove to be correct.  Such statements are subject to a variety of risks,
uncertainties and assumptions as described in more detail in Item 1A, &#147;Risk Factors,&#148; included in our annual report on Form 10-K for 2006.  If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected.  You should not put undue reliance on any forward-looking statements.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Overview of Critical Accounting Policies and Estimates</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A summary of the significant accounting policies we have adopted and followed in the preparation of our consolidated financial statements is included in our Annual Report on Form&nbsp;10-K for the year ended December 31, 2006.  Certain of these accounting policies require the use of estimates.  As more fully described therein, the following estimates, in our opinion, are subjective in nature, require the exercise of judgment and involve complex analysis: depreciation methods and estimated useful lives of property, plant and equipment; measuring recoverability of long-lived assets and equity method investments; amortization methods and estimated useful lives of qualifying intangible assets; methods we employ to measure the fair value of goodwill; our revenue recognition policies and use of estimates for revenues and expenses; reserves for environmental matters; and natural gas imbalances.
These estimates are based on our knowledge and understanding of current conditions and actions we may take in the future.  Changes in these estimates will occur as a result of the passage of time and the occurrence of future events.  Subsequent changes in these estimates may have a significant impact on our financial position, results of operations and cash flows. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Overview of Business</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We are a North American midstream energy company providing a wide range of services to producers and consumers of natural gas, natural gas liquids (&#147;NGLs&#148;), crude oil and certain petrochemicals.  In addition, we are an industry leader in the development of pipeline and other midstream energy infrastructure in the continental United States and the Gulf of Mexico.  We are a publicly traded Delaware limited partnership formed in 1998, the common units of which are listed on the New York Stock Exchange (&#147;NYSE&#148;) under the ticker symbol &#147;EPD.&#148; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our midstream energy asset network links producers of natural gas, NGLs and crude oil from some of the largest supply basins in the United States, Canada and the Gulf of Mexico with domestic consumers and international markets.  We have four reportable business segments: NGL Pipelines &amp; Services; Onshore Natural Gas Pipelines &amp; Services; Offshore Pipelines &amp; Services; and Petrochemical Services.  Our business segments are generally organized and managed according to the type of services rendered (or technologies employed) and products produced and/or sold. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We conduct substantially all of our business through Enterprise Products Operating LLC (&#147;EPO&#148;), as successor in interest by merger to Enterprise Products Operating L.P.  We are owned 98% by our limited partners and 2% by Enterprise Products GP, LLC (our general partner, referred to as &#147;Enterprise Products GP&#148;).  Enterprise Products GP is owned 100% by Enterprise GP Holdings, a publicly traded affiliate listed on the NYSE under the ticker symbol &#147;EPE.&#148;  We, Enterprise Products GP and Enterprise GP Holdings are affiliates under the common control of Dan L. Duncan, the Chairman and controlling shareholder of EPCO, Inc. (&#147;EPCO&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>45</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We are committed to the long-term growth and viability of Enterprise Products Partners.  Part of our business strategy involves expansion through business combinations, growth capital projects and investments in joint ventures.  We believe we are positioned to continue to grow our system of assets through the construction of new facilities and to capitalize on expected future production increases from such areas as the Piceance Basin of western Colorado, the Greater Green River Basin in Wyoming, the Barnett Shale in North Texas, and the deepwater Gulf of Mexico.  Management continues to analyze potential acquisitions, joint ventures and similar transactions with businesses that operate in complementary markets or geographic regions.  In recent years, major oil and gas companies have sold non-strategic assets in the midstream energy sector in which we operate.  We expect this trend to
continue, and expect independent oil and natural gas companies to consider similar divestitures.  For information regarding our capital spending, see the discussion of our investing cash flows under &#147;Liquidity and Capital Resources&#148; within this Item 2.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Recent Developments</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following information highlights our significant developments since January 1, 2007 through the date of this filing.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In October 2007, we commenced natural gas processing operations at our Meeker facility, which recently completed its first phase of construction.  Located in Colorado&#146;s Piceance Basin, our Meeker facility has a processing capacity of 750 MMcf/d of natural gas and is capable of extracting up to 35 MBPD of mixed NGLs.  Phase II of the Meeker facility, which is under construction and expected to be completed in the third quarter of 2008, will double its processing capacity to 1.5 Bcf/d of natural gas and 70 MBPD of mixed NGLs.  The two phases are supported by long-term commitments from producers, including EnCana and ExxonMobil.  Natural gas volumes are expected to exceed 500 MMcf/d by the end of 2007, which are expected to produce more than 27.7 MBPD of mixed NGLs.  The Piceance Basin represents one of the most prolific and fastest growing energy producing
areas in the nation, and the completion of our Meeker facility provides the region with valuable midstream infrastructure needed to accommodate those growing volumes.  </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In October 2007, we completed the expansion of the Rocky Mountain portion of our Mid-America Pipeline (&#147;MAPL&#148;) system.  The final phase of this project consisted of installing new pumps and the modification of existing pumps, which increased system capacity by 20 MBPD.  The first phase, which was completed in April 2007, provided an additional 30 MBPD of system capacity.  Overall, these expansion projects increased the capacity of MAPL&#146;s Rocky Mountain system from 225 MBPD to 275 MBPD.  This expansion will accommodate expected mixed NGL volumes originating from our Meeker facility. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In September 2007, EPO sold $800.0 million in principal amount of 6.30% fixed-rate, unsecured senior notes due September 2017.  Net proceeds from this offering were used to temporarily reduce borrowings outstanding under EPO&#146;s Multi-Year Revolving Credit Facility.  In October 2007, EPO used borrowing capacity under its revolver to repay $500.0 million in principal amount due under its Senior Notes E.  See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for information regarding our debt obligations.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In August 2007, we entered into a memorandum of understanding with Questar Pipeline Company (&#147;Questar&#148;) to develop a new natural gas pipeline hub in the Rockies.  As proposed, the White River Hub would be a header system that will be owned equally by us and Questar.  The facilities would connect our natural gas processing complex near Meeker, Colorado, with up to six interstate pipelines in the Piceance Basin area, including the Questar Pipeline.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In August 2007, we completed the expansion of our petrochemical assets in Mont Belvieu and southeast Texas.  This expansion project included (i) the construction of a fourth propylene fractionator at our Mont Belvieu complex, which increased our propylene/propane </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>46</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>fractionation capacity by approximately one billion pounds per year, or 15 MBPD, and (ii) the expansion of two refinery grade propylene gathering pipelines which added 50 MBPD of gathering capacity into Mont Belvieu.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In August 2007, we completed construction of our Hobbs NGL fractionator, which is designed to handle up to 75 MBPD of mixed NGLs.  The new fractionator is strategically located at the interconnection of our MAPL and our Seminole pipelines near Hobbs, New Mexico.  Our Hobbs NGL fractionator offers another key hub for separating mixed NGLs produced at our Meeker facility into purity NGL products.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In July 2007, our Independence Hub platform
and Independence Trail pipeline received first production from deepwater production wells connected to the Independence Hub platform.  As a result, these assets
began earning fee-based revenues for natural gas processing and transportation services.  These amounts are in addition to the demand fee revenues that
Independence Hub began earning in March 2007.  Currently, the platform is receiving approximately 900 MMcf/d of natural gas from fourteen wells.  We expect
that the platform will approach its full capacity of 1 Bcf/d by the end of 2007.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In July 2007, we announced changes to our senior management team that became effective August 1, 2007. The board of directors of our general partner elected Michael A. Creel president and chief executive officer, W. Randall Fowler executive vice president</font><font size=2> </font><font size=2>and</font><font size=2> </font><font size=2>chief financial officer, and William Ordemann executive vice president and chief operating officer.  Mr. Creel replaces Robert G. Phillips who resigned effective June 30, 2007.  Mr. Fowler was promoted to fill the position left vacant by Mr. Creel&#146;s promotion.  Mr. Ordemann was promoted to fill the position vacated by Dr. Ralph S. Cunningham, who is now the president and chief executive officer of Enterprise GP Holdings.  Mr. Creel had previously held this position.   </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In July 2007, we completed the first portion of the Phase V Expansion of the Jonah Gathering System, which increased the system gathering capacity to 2.0 Bcf/d.  The second and final phase of the expansion, which is targeted for completion in the first quarter of 2008, is expected to increase the system&#146;s gathering capacity further to 2.3 Bcf/d.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In June 2007, we announced the completion of our project to expand the capabilities of our import/export terminal at the Houston Ship Channel to handle incremental volumes of natural gas liquids and liquefied petroleum gases. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In May 2007, EPO sold $700 million in principal amount of fixed/floating unsecured junior subordinated notes due January 2068.  Net proceeds from this offering were used by EPO to temporarily reduce borrowings outstanding under its Multi-Year Revolving Credit Facility and for general partnership purposes.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In March 2007, we formed a natural gas services and marketing business similar to our existing NGL and petrochemical marketing businesses.  This new group will be the focal point for all of our existing natural gas supply and marketing activities, which currently include producer wellhead services, facility fuel procurement, pipeline and storage capacity optimization, and a full range of market customer delivery arrangements.  This initiative is expected to broaden our role in the natural gas markets by linking our extensive U.S. natural gas pipeline and storage assets, thus providing customers with value-added solutions and reducing our operating costs through enhanced fuel procurement practices.  </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

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    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In February 2007, a consolidated subsidiary of ours, Duncan Energy Partners, completed its underwritten initial public offering of 14,950,000 common units.  Duncan Energy Partners, a Delaware limited partnership, was formed to acquire ownership interests in certain of our midstream energy businesses.  For additional information regarding Duncan Energy Partners, </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>47</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>see &#147;Other Items &#150; Initial Public Offering of Duncan Energy Partners&#148; included within this Item 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Results of Operations</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have four reportable business segments: NGL Pipelines &amp; Services; Onshore Natural Gas Pipelines &amp; Services; Offshore Pipelines &amp; Services; and Petrochemical Services.  Our business segments are generally organized and managed according to the type of services rendered (or technologies employed) and products produced and/or sold.  </font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We evaluate segment performance based on the non-GAAP financial measure of gross operating margin.  Gross operating margin (either in total or by individual segment) is an important performance measure of the core profitability of our operations.  This measure forms the basis of our internal financial reporting and is used by senior management in deciding how to allocate capital resources among business segments.  We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results. The GAAP financial measure most directly comparable to total segment gross operating margin is operating income. Our non-GAAP financial measure of total segment gross operating margin should not be considered as an alternative to GAAP operating income.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We define total segment gross operating margin as consolidated operating income before (i) depreciation, amortization and accretion expense; (ii) operating lease expenses for which we do not have the payment obligation; (iii) gains and losses on the sale of assets; and (iv) general and administrative costs.  Gross operating margin is exclusive of other income and expense transactions, provision for income taxes, minority interest, extraordinary charges and the cumulative effect of change in accounting principle.  Gross operating margin by segment is calculated by subtracting segment operating costs and expenses (net of the adjustments noted above) from segment revenues, with both segment totals before the elimination of intersegment and intrasegment transactions.  Intercompany accounts and transactions are eliminated in consolidation.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We include earnings from equity method unconsolidated affiliates in our measurement of segment gross operating margin and operating income.  Our equity investments with industry partners are a vital component of our business strategy.  They are a means by which we conduct our operations to align our interests with those of our customers and/or suppliers.  This method of operation also enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed versus what we could accomplish on a stand-alone basis.  Many of these businesses perform supporting or complementary roles to our other business operations.  As circumstances dictate, we may increase our ownership interest in equity investments, which could result in their subsequent consolidation into our operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our consolidated gross operating margin amounts include the gross operating margin amounts of Duncan Energy Partners on a 100% basis.  Volumetric data associated with the operations of Duncan Energy Partners are also included on a 100% basis in our consolidated statistical data. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For additional information regarding our business segments, see Note 11 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>48</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Selected Price and Volumetric Data</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table illustrates selected quarterly industry index prices for natural gas, crude oil and selected NGL and petrochemical products for the periods presented.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Polymer</font></b></p> </td>
        <td width="59" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Refinery</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Natural</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Normal</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Natural</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Grade</font></b></p> </td>
        <td width="59" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Grade</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Gas,</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Crude Oil,</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ethane,</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Propane,</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Butane,</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Isobutane,</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Gasoline,</font></b></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Propylene,</font></b></p> </td>
        <td width="59" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Propylene,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/MMBtu</font></b></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/barrel</font></b></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/gallon</font></b></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/gallon</font></b></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/gallon</font></b></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/gallon</font></b></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/gallon</font></b></p> </td>
        <td width="58" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/pound</font></b></p> </td>
        <td width="59" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>$/pound</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td>
        <td width="58" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td>
        <td width="59" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>1st Quarter</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$9.01 </font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$63.35 </font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.57 </font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.94 </font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.20 </font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.27 </font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.38 </font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.45 </font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.40 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>2nd Quarter</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$6.80</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$70.53</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.68</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.05</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.22</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.26</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.52</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.50</font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.44</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>3rd Quarter</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$6.58</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$70.44</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.76</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.10</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.28</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.30</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.53</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.51</font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.46</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>4th Quarter</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$6.56</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$60.03</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.62</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.95</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.11</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.12</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.31</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.44</font></p> </td>
        <td width="59" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.35</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006 Averages</font></b></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$7.24</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$66.09</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.66</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.01</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.20</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.24</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.44</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.47</font></p> </td>
        <td width="59" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.41</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>1st Quarter</font><b><font size=1> </font></b></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$6.77</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$58.02</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.59</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.97</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.13</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.22</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.37</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.45</font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.40</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>2nd Quarter</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$7.55</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$64.97</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.72</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.13</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.33</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.45</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.65</font></p> </td>
        <td width="58" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.51</font></p> </td>
        <td width="59" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.46</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>3rd Quarter</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$6.16</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$75.48</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.82</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.23</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.44</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.49</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.68</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.52</font></p> </td>
        <td width="59" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.46</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="86" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007 Averages</font></b></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$6.83</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$66.15</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.71</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.11</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.30</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.38</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$1.57</font></p> </td>
        <td width="58" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.49</font></p> </td>
        <td width="59" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$0.44</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="8" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="58" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="59" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td> </tr>
    <tr style='height:45.15pt'>
        <td  colspan="10" valign=top style=' border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:45.15pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;Natural gas, NGL, polymer grade propylene and refinery grade propylene prices represent an average of various commercial index prices including Oil Price Information Service (&#147;OPIS&#148;) and Chemical Market Associates, Inc. (&#147;CMAI&#148;).  Natural gas price is representative of Henry-Hub I-FERC.  NGL prices are representative of Mont Belvieu Non-TET pricing.  Refinery grade propylene represents an average of CMAI spot prices.  Polymer-grade propylene represents average CMAI contract pricing.</font></p>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;</font><font size=1>Crude oil price is representative of an index price for West Texas Intermediate.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents our significant average throughput, production and processing volumetric data.  These statistics are reported on a net basis, taking into account our ownership interests in certain joint ventures, and reflect the periods in which we owned an interest in such operations.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="671" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months </font></b></p></td>
        <td  colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months </font></b></p></td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="85" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="85" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>NGL Pipelines &amp; Services, net:</font></b></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL transportation volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,575</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,706</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,626</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,579</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL fractionation volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>371</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>341</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>379</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>302</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Equity NGL production (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>64</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>67</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>67</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>63</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fee-based natural gas processing (MMcf/d)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,269</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,237</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,358</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>2,224</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Onshore Natural Gas Pipelines &amp; Services, net:</font></b></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Natural gas transportation volumes (BBtus/d)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,597</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,049</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,576</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6,066</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Offshore Pipelines &amp; Services, net:</font></b></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Natural gas transportation volumes (BBtus/d) </font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,271</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,573</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,322</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,524</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Crude oil transportation volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>163</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>173</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>164</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>149</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Platform gas processing (MMcf/d)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>286</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>160</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>295</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>158</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Platform oil processing (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>24</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>12</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>24</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>12</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Petrochemical Services, net:</font></b></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Butane isomerization volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>96</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>82</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>93</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>83</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Propylene fractionation volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>59</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>57</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>58</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>55</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Octane additive production volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>11</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>9</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>8</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Petrochemical transportation volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>108</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>101</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>104</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>94</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total, net:</font></b></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NGL, crude oil and petrochemical transportation volumes (MBPD)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,846</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,980</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,894</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,822</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Natural gas transportation volumes (BBtus/d)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,868</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,622</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,898</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>7,590</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Equivalent transportation volumes (MBPD) (1)</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,917</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,986</font></p> </td>
        <td width="85" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,972</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,819</font></p> </td>
        <td  width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td width="24"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="306"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='border-bottom:solid black 1.0pt' width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="7" valign=bottom style=' padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1) Reflects equivalent energy volumes where 3.8 MMBtus of natural gas are equivalent to one barrel of NGLs.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>49</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Comparison of Results of Operations</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes the key components of our results of operations for the periods indicated (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="628" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="81" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="84"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Revenues</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;4,111,996</font></p> </td>
        <td width="81" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;3,872,525</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;11,647,656</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;10,640,452</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating costs and expenses</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,896,411</font></p> </td>
        <td width="81" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,584,783</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,981,562</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,955,231</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>General and administrative costs</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18,715</font></p> </td>
        <td width="81" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15,823</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>66,706</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,798</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Equity in income of unconsolidated affiliates</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,960</font></p> </td>
        <td width="81" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,265</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,928</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14,306</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating income</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>210,830</font></p> </td>
        <td width="81" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>274,184</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>613,316</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>653,729</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest expense</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>85,075</font></p> </td>
        <td width="81" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>62,793</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>219,708</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>177,203</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="290"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>117,606</font></p> </td>
        <td width="81" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>208,302</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>371,805</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>468,374</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our gross operating margin by segment and in total is as follows for the periods indicated (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="616" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="256"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months </font></b></p>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months </font></b></p>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="256"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="87" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="84"  valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Gross operating margin by segment:</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="256"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NGL Pipelines &amp; Services</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;190,209</font></p> </td>
        <td width="87" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;232,037</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;589,708</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;549,401</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="256" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Onshore Natural Gas Pipelines &amp; Services</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>75,424</font></p> </td>
        <td width="87" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>77,489</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>235,102</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>260,943</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="256"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Offshore Pipelines &amp; Services</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>46,676</font></p> </td>
        <td width="87" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>38,364</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>97,429</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>76,131</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="256"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Petrochemical Services</font></p> </td>
        <td width="89"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>51,412</font></p> </td>
        <td width="87" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>51,851</font></p> </td>
        <td width="84" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>139,329</font></p> </td>
        <td width="84"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>136,413</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total segment gross operating margin</font></p> </td>
        <td width="89"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;363,721</font></p> </td>
        <td width="87"  valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;399,741</font></p> </td>
        <td width="84" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;1,061,568</font></p> </td>
        <td width="84" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;1,022,888</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For a reconciliation of non-GAAP gross operating margin to GAAP operating income and further to GAAP income before provision for income taxes, minority interest and the cumulative effect of change in accounting principle, see &#147;Other Items &#150; Non-GAAP reconciliations&#148; included within this Item 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes the contribution to consolidated revenues from the sale of NGL, natural gas and petrochemical products during the periods indicated (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="571" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="65"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="65"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="65"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83"  valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="83" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="83" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="79"  valign=bottom style='border-bottom: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NGL Pipelines &amp; Services:</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of NGL products</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;2,837,465</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;2,640,568</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;7,952,147</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;7,276,342</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of consolidated revenues</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>69%</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>68%</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>68%</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>68%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td colspan="3" nowrap valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Onshore Natural Gas Pipelines &amp; Services:</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of natural gas</font></p> </td>
        <td width="115"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>406,482</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>312,116</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,190,235</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>943,480</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of consolidated revenues</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10%</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8%</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10%</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Petrochemical Services:</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of petrochemical products</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>444,670</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>417,395</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,268,731</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,157,184</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.05pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of consolidated revenues</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td>
        <td width="83"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td>
        <td width="83" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td>
        <td width="79" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As noted in the following sections, changes in our revenues period-to-period are explained in part by changes in energy commodity prices.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


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        <td width="360" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Comparison of Three Months Ended September 30, 2007 with</font></b></i></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="248" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Three Months Ended September 30, 2006</font></b></i></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Consolidated revenues increased $239.5 million quarter-to-quarter to $4.11 billion for the third quarter of 2007 from $3.87 billion for the third quarter of 2006.  The quarter-to-quarter increase in consolidated revenues is primarily due to higher NGL sales prices and natural gas sales volumes in the third </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>50</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>quarter of 2007 relative to the third quarter of 2006.  These factors contributed to a $318.5 million increase in consolidated revenues from our NGL, natural gas and petrochemical marketing activities.  Revenues for the third quarter of 2007 include $2.0 million of proceeds from business interruption insurance claims compared to $50.2 million of such proceeds received during the third quarter of 2006.  See Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding proceeds from our business interruption insurance claims.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Operating costs and expenses were $3.90 billion for the third quarter of 2007 versus $3.58 billion for the third quarter of 2006.  The $311.6 million quarter-to-quarter increase in consolidated operating costs and expenses is primarily due to a $321.2 million increase in the cost of sales associated with our NGL, natural gas and petrochemical marketing activities caused by higher sales volumes and energy commodity prices.  General and administrative costs were $18.7 million for the third quarter of 2007 compared to $15.8 million for the third quarter of 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Changes in our revenues and costs and expenses quarter-to-quarter are explained in part by changes in energy commodity prices.  The weighted-average indicative market price for NGLs was $1.21 per gallon during the third quarter of 2007 versus $1.09 per gallon during the third quarter of 2006.  Our determination of the weighted-average indicative market price for NGLs is based on U.S. Gulf Coast prices for such products at Mont Belvieu, Texas, which is the primary industry hub for domestic NGL production.  The market price of natural gas (as measured at Henry Hub) averaged $6.16 per MMBtu during the third quarter of 2007 versus $6.58 per MMBtu during the third quarter of 2006.  For additional historical energy commodity pricing information, see the table on page 49.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Equity earnings from our unconsolidated affiliates were $14.0 million for the third quarter of 2007 compared to $2.3 million for the third quarter of 2006.  The third quarter of 2006 included a $7.4 million non-cash impairment charge related to our investment in Neptune Pipeline Company, L.L.C. (&#147;Neptune&#148;).  The third quarter of 2007 includes $2.4 million of equity earnings from our investment in Jonah.  Certain capital spending thresholds and operational milestones were achieved during the third quarter of 2007 with respect to the Phase V Expansion of the Jonah Gathering System.  We earned a fixed 19.4% interest in Jonah as a result.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Operating income for the third quarter of 2007 was $210.8 million compared to $274.2 million for the third quarter of 2006.  Collectively, the aforementioned changes in revenues, costs and expenses and equity earnings contributed to the $63.4 million decrease in operating income quarter-to-quarter.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Interest expense increased $22.3 million quarter-to-quarter primarily due to our issuance of junior subordinated notes in the third quarter of 2006 and the second quarter of 2007 and the issuance of Senior Notes L in the third quarter of 2007.  Our consolidated interest expense for the third quarter of 2007 includes $3.2 million associated with Duncan Energy Partners&#146; credit facility.  Our average debt principal outstanding was $6.6 billion in the third quarter of 2007 compared to $5.0 billion in the third quarter of 2006.  Minority interest expense increased $5.8 million quarter-to-quarter attributable to the public unit holders of Duncan Energy Partners and third-party ownership interests in the Independence Hub platform.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As a result of items noted in the previous paragraphs, our consolidated net income decreased $90.7 million quarter-to-quarter to $117.6 million in the third quarter of 2007 compared to $208.3 million in the third quarter of 2006. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following information highlights significant quarter-to-quarter variances in gross operating margin by business segment:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>NGL Pipelines &amp; Services</font></i></u><font size=2>.&nbsp; Gross operating margin from this business segment was $190.2 million for the third quarter of 2007 compared to $232.0 million for the third quarter of 2006.  The third quarter of 2007 includes $1.8 million of proceeds from business interruption insurance claims compared to $30.1 million of proceeds during the third quarter of 2006.&nbsp; The following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>51</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our natural gas processing and related NGL marketing business was $96.1 million for the third quarter of 2007 compared to $107.9 million for the third quarter of 2006.  Equity NGL production decreased to 64 MBPD during the third quarter of 2007 from 67 MBPD during the third quarter of 2006.  The $11.8 million quarter-to-quarter decrease in gross operating margin is primarily due to lower NGL marketing sales volumes and increased natural gas hedging expenses.  In addition, the third quarter of 2007 includes expenses attributable to a delay in the initial start-up of our Meeker natural gas processing plant, which commenced operations in October 2007 approximately two months later than our original expectations.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our NGL pipelines and related storage business was $71.2 million for the third quarter of 2007 compared to $56.6 million for the third quarter of 2006.  Total NGL transportation volumes decreased to 1,575 MBPD during the third quarter of 2007 from 1,706 MBPD during the third quarter of 2006 primarily attributable to lower import volumes.  The $14.6 million quarter-to-quarter increase in gross operating margin from this business is primarily due to higher NGL transportation volumes and tariffs on our Mid-America Pipeline System during the third quarter of 2007 relative to the same quarter in 2006 and the addition of gross operating margin from the DEP South Texas NGL Pipeline, which became operational in January 2007, both of which were partially offset by the effects of lower import volumes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from NGL fractionation was $21.1 million for the third quarter of 2007 compared to $37.4 million for the third quarter of 2006.  Fractionation volumes increased to 371 MBPD during the third quarter of 2007 from 341 MBPD during the third quarter of 2006.  The $16.3 million quarter-to-quarter decrease in gross operating margin is largely due to (i) lower measurement gains during the third quarter of 2007 relative to the same quarter in 2006, (ii) a 7 MBPD decrease in fractionation volumes and higher operating expenses at our Norco NGL fractionator and (iii) start-up costs for our Hobbs NGL fractionator.  The Hobbs NGL fractionator became operational in August 2007 and accounted for 22 MBPD of the quarter-to-quarter increase in fractionation volumes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Onshore Natural Gas Pipelines &amp; Services</font></i></u><font size=2>.  Gross operating margin from this business segment was $75.4 million for the third quarter of 2007 compared to $77.5 million for the third quarter of 2006.  Gross operating margin from our onshore natural gas pipeline business was $67.8 million for the third quarter of 2007 compared to $76.4 million for the third quarter of 2006.  Onshore natural gas transportation volumes increased to 6,597 BBtu/d during the third quarter of 2007 from 6,049 BBtu/d for the third quarter of 2006.  The $8.6 million quarter-to-quarter decrease in gross operating margin from this business is primarily due to lower volumes on our San Juan Gathering System and higher pipeline integrity and operating expenses on our Texas Intrastate System.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Segment gross operating margin for the third quarter of 2007 includes $1.4 million from the Piceance Creek Gathering System, which we acquired in December 2006 and placed in-service during January 2007, and $2.4 million of equity earnings from Jonah.  The Piceance Creek Gathering System and our net share of the gathering volumes on the Jonah Gathering System contributed 404 BBtu/d and 359 BBtu/d, respectively, of natural gas gathering volumes during the third quarter of 2007.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our natural gas storage business increased $6.6 million quarter-to-quarter primarily due to a decrease in repair-related costs at our Wilson natural gas storage facility.  Three storage wells at our Wilson facility were taken out of service in the second quarter of 2006  One cavern resumed limited operations during October 2007 and the remaining two storage wells are expected to resume commercial operations in the fourth quarter of 2007.  Also, gross operating margin for the third quarter of 2007 includes a $2.4 million charge for the write-off of accumulated conversion costs related to a cavern at the Petal storage facility in Mississippi that was deemed unsuitable to convert from NGL to natural gas storage service.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Offshore Pipelines &amp; Services</font></i></u><font size=2>.  Gross operating margin from this business segment was $46.7 million for the third quarter of 2007 compared to $38.4 million for the third quarter of 2006.  Segment gross operating margin for the third quarter of 2007 includes $0.2 million of proceeds from business interruption insurance claims compared to $20.1 million of proceeds in the third quarter of 2006.  The </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>52</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our offshore platforms and services business was $28.8 million for the third quarter of 2007 compared to $8.6 million for the third quarter of 2006.  The $20.2 million quarter-to-quarter increase in gross operating margin is primarily due to our Independence Hub platform, which began earning revenues in March 2007.  The Independence Hub received first production in July 2007 and contributed $16.4 million of the increase in gross operating margin quarter-to-quarter from fixed and volumetric revenues earned on an average throughput of 124 MMcf/d of natural gas during the third quarter of 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our offshore natural gas pipeline business was $8.8 million for the third quarter of 2007 compared to $0.9 million for the third quarter of 2006, an increase of $7.9 million quarter-to-quarter.  Offshore natural gas transportation volumes were 1,271 BBtu/d during the third quarter of 2007 versus 1,573 BBtu/d during the third quarter of 2006.  The third quarter of 2006 includes a $7.4 million non-cash impairment charge related to our investment in Neptune.  Gross operating margin from our HIOS system increased $4.6 million quarter-to-quarter primarily due to an increase in the tariff rate charged to shippers.  Also, gross operating margin for the third quarter of 2007 includes $3.1 million from our Independence Trail pipeline, which became operational in July 2007.  Collectively, gross operating margin from our other natural gas pipelines decreased $7.2 million
quarter-to-quarter primarily due to lower volumes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our offshore crude oil pipeline business was $8.9 million for the third quarter of 2007 compared to $8.8 million for the third quarter of 2006.  Offshore crude oil transportation volumes decreased to 163 MBPD during the third quarter of 2007 from 173 MBPD during the third quarter of 2006.  Equity earnings from Cameron Highway increased $2.7 million quarter-to-quarter attributable to higher volumes and lower interest expense.  Collectively, gross operating margin from our other offshore crude oil pipelines decreased $2.6 million quarter-to-quarter primarily due to lower transportation volumes during the third quarter of 2007 compared to the same quarter in 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.59in;text-align:justify;'><u><i><font size=2>Petrochemical Services</font></i></u><font size=2>.  Gross operating margin from this business segment was $51.4 million for the third quarter of 2007 compared to $51.9 million for the third quarter of 2006.  Gross operating margin from our butane isomerization business was $28.5 million for the third quarter of 2007 compared to $18.5 million for the third quarter of 2006.  The $10.0 million quarter-to-quarter increase in gross operating margin is primarily due to a 17% increase in volumes, which increased to 96 MBPD during the third quarter of 2007 from 82 MBPD during the third quarter of 2006.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our octane enhancement business was $8.9 million for the third quarter of 2007 compared to $18.4 million for the third quarter of 2006.  Gross operating margin from this business decreased $9.5 million quarter-to-quarter primarily due to lower isooctane sales margins and higher maintenance expenses in the third quarter of 2007 versus the third quarter of 2006.  Gross operating margin from our propylene fractionation and pipeline business was $14.0 million for the third quarter of 2007 versus $14.9 million for the third quarter of 2006.  The $0.9 million quarter-to-quarter decrease in gross operating margin is largely due to higher maintenance expenses during the third quarter of 2007 compared to the third quarter of 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><i><b><font size=2>Comparison of Nine Months Ended September 30, 2007 with </font></b></i></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="243" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Nine Months Ended September 30, 2006</font></b></i></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Revenues for the first nine months of 2007 were $11.65 billion compared to $10.64 billion for the first nine months of 2006.  The $1.01 billion period-to-period increase in consolidated revenues is primarily due to higher sales volumes and energy commodity prices during the first nine months of 2007 relative to the 2006 period.  These differences accounted for a $1.03 billion increase in consolidated revenues associated with our marketing activities.  Revenues for the first nine months of 2007 include $24.9 million of proceeds from business interruption insurance claims compared to $62.4 million of proceeds during the first nine months of 2006.  In addition, revenues from recent business combinations or newly constructed </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>53</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>assets (principally those attributable to the Encinal acquisition and the Independence Hub platform) increased $87.1 million period-to-period.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Operating costs and expenses were $10.98 billion for the first nine months of 2007 compared to $9.96 billion for the first nine months of 2006.  The $1.02 billion period-to-period increase in consolidated operating costs and expenses is largely due to an increase in the costs of sales associated with our marketing activities.  The cost of sales of our natural gas, NGL and petrochemical products increased $738.3 million period-to-period as a result of an increase in volumes and higher energy commodity prices.  Consolidated operating costs and expenses attributable to recent business combinations or newly constructed assets increased $114.7 million period-to-period. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>General and administrative costs were $66.7 million for the first nine months of 2007 compared to $45.8 million for the first nine months of 2006.  The $20.9 million period-to-period increase in general and administrative costs is primarily due to the recognition of a severance obligation during the first nine months of 2007 and an increase in legal fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Changes in our revenues and costs and expenses period-to-period are explained in part by changes in energy commodity prices.  The weighted-average indicative market price for NGLs was $1.09 per gallon for the first nine months of 2007 versus $1.02 per gallon during the first nine months of 2006.  The Henry Hub market price for natural gas averaged $6.83 per MMBtu for the first nine months of 2007 versus $7.47 per MMBtu during the 2006 period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Equity earnings from unconsolidated affiliates decreased $0.4 million to $13.9 million for the first nine months of 2007 compared to $14.3 million for the 2006 period.  The first nine months of 2007 include a $7.0 million non-cash impairment charge associated with our investment in Nemo Gathering Company, LLC (&#147;Nemo&#148;) compared to a $7.4 million charge related to our investment in Neptune during the 2006 period.  Equity earnings from our investment in Cameron Highway decreased $5.0 million period-to-period primarily due to expenses we recognized during first nine months of 2007 associated with the early retirement of Cameron Highway&#146;s debt.  The first nine months of 2007 include $4.4 million of equity earnings from our investment in Jonah.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Operating income for the first nine months of 2007 was $613.3 million compared to $653.7 million for the first nine months of 2006.  Collectively, the aforementioned changes in revenues, costs and expenses and equity earnings contributed to the $40.4 million decrease in operating income period-to-period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Interest expense increased to $219.7 million for the first nine months of 2007 from $177.2 million for the first nine months of 2006.  The $42.5 million period-to-period increase in interest expense is primarily due to higher outstanding debt principal balances during the first nine months of 2007 compared to the same period in 2006.  Our average debt principal outstanding was $6.0 billion for the first nine months of 2007 compared to $4.8 billion for the first nine months of 2006.  Also, our consolidated interest expense for the first nine months of 2007 includes $6.7 million associated with Duncan Energy Partners&#146; credit facility.  Minority interest expense increased $14.5 million period-to-period attributable to the public unitholders of Duncan Energy Partners and third-party ownership interests in the Independence Hub platform.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As a result of the items noted in previous paragraphs, our consolidated net income decreased $96.6 million to $371.8 million for the nine months ended September 30, 2007 compared to $468.4 million for the 2006 period.  The first nine months of 2006 include a $1.5 million benefit related to the cumulative effect of a change in accounting principle resulting from our adoption of Statement of Financial Accounting Standards (&#147;SFAS&#148;) 123(R) on January 1, 2006.  For additional information regarding this cumulative effect adjustment, please read Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>54</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following information highlights the significant period-to-period variances in gross operating margin by business segment:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>NGL Pipelines &amp; Services</font></i></u><font size=2>.  Gross operating margin from this business segment was $589.7 million for the first nine months of 2007 compared to $549.4 million for the first nine months of 2006, a period-to-period increase of $40.3 million.  The first nine months of 2007 include $23.4 million of proceeds from business interruption insurance claims compared to $40.4 million of proceeds during the first nine months of 2006.  The following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our natural gas processing and related NGL marketing business was $283.5 million for the first nine months of 2007 compared to $268.9 million for the first nine months of 2006.  The $14.6 million period-to-period increase in gross operating margin is primarily due to higher processing volumes at our south Louisiana and Chaco natural gas processing plants during the first nine months of 2007 relative to the 2006 period.  Fee-based processing volumes increased to 2.4 Bcf/d during the first nine months of 2007 from 2.2 Bcf/d during the first nine months of 2006.  Equity NGL production volumes increased to 67 MBPD during the first nine months of 2007 from 63 MBPD during the 2006 period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our NGL pipelines and storage business was $215.5 million for the first nine months of 2007 compared to $175.7 million for the first nine months of 2006.  Total NGL transportation volumes increased to 1,626 MBPD for the first nine months of 2007 from 1,579 MBPD for the 2006 period.  The $39.8 million period-to-period increase in gross operating margin is largely due to higher pipeline transportation and NGL storage volumes at certain of our facilities and higher transportation fees charged to shippers on our Mid-America Pipeline System.  In addition, the first nine months of 2007 include $15.3 million of gross operating margin generated by the DEP South Texas NGL Pipeline. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our NGL fractionation business was $67.3 million for the first nine months of 2007 compared to $64.4 million for the first nine months of 2006.  Fractionation volumes increased from 302 MBPD during the first nine months of 2006 to 379 MBPD during the first nine months of 2007.  The $2.9 million period-to-period increase in gross operating margin is primarily due to higher volumes at our Norco NGL fractionator during the first nine months of 2007 relative to the 2006 period.  Our Norco NGL fractionator returned to normal operating rates in the second quarter of 2006 after suffering a reduction of processing volumes due to the effects of Hurricane Katrina.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Onshore Natural Gas Pipelines &amp; Services</font></i></u><font size=2>.  Gross operating margin from this business segment was $235.1 million for the first nine months of 2007 compared to $260.9 million for the first nine months of 2006.  Gross operating margin from our onshore natural gas pipeline business was $216.2 million for the first nine months of 2007 compared to $246.6 million for the 2006 period.  Onshore natural gas transportation volumes were 6,576 BBtu/d during the first nine months of 2007 compared to 6,066 BBtu/d during the 2006 period.  The $30.4 million period-to-period decrease in gross operating margin is largely due to lower natural gas sales margins on our Acadian and Permian Basin Systems and higher pipeline integrity and operating costs on our Texas Intrastate System. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The first nine months of 2007 include $3.6 million of gross operating margin from our Piceance Creek Gathering System and $4.4 million of equity earnings from Jonah.  The Piceance Creek Gathering System and our net share of the gathering volumes on the Jonah Gathering System contributed 718 BBtu/d, collectively, of natural gas gathering volumes during the first nine months of 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our natural gas storage business was $18.9 million for the first nine months of 2007 compared to $14.3 million for the first nine months of 2006. The $4.6 million increase period-to-period is largely due to lower repair-related costs at our Wilson natural gas storage facility.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Offshore Pipelines &amp; Services</font></i></u><font size=2>.  Gross operating margin from this business segment was $97.4 million for the first nine months of 2007 compared to $76.1 million for the first nine months of 2006.  The </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>55</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>first nine months of 2007 include $1.5 million of proceeds from business interruption insurance claims compared to $22.0 million of proceeds during the first nine months of 2006.  In addition, insurance costs for our offshore assets increased to $20.1 million for the first nine months of 2007 compared to $13.8 million for the first nine months of 2006.  Insurance costs for our offshore operations have increased as a result of industry losses associated with significant storms in recent years.  The following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims and insurance costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our offshore platforms and services business was $69.5 million for the first nine months of 2007 compared to $23.4 million for the first nine months of 2006.  The $46.1 million period-to-period increase is primarily due to our Independence Hub platform, which contributed $34.1 million of gross operating margin for the first nine months of 2007.  In addition, gross operating margin from this business increased $12.0 million period-to-period primarily due to higher volumes during the first nine months of 2007 compared to the 2006 period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our offshore natural gas pipeline business was $34.6 million for the first nine months of 2007 compared to $28.3 million for the first nine months of 2006.  Offshore natural gas transportation volumes were 1,322 BBtu/d during the first nine months of 2007 versus 1,524 BBtu/d during the first nine months of 2006.  The $6.3 million increase period-to-period in gross operating margin is primarily due to an increase in the tariff rate charged to shippers on HIOS.  The first nine months of 2007 includes a $7.0 million non-cash impairment charge associated with our investment in Nemo compared to a $7.4 million charge related to our investment in Neptune during the 2006 period.  Also, the first nine months of 2007 include $3.1 million of gross operating margin from the Independence Trail pipeline.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our offshore crude oil pipeline business was $11.9 million for the first nine months of 2007 versus $16.2 million for the first nine months of 2006.  Offshore crude oil transportation volumes were 164 MBPD for the first nine months of 2007 compared to 149 MBPD for the first nine months of 2006.  Improved gross operating margin period-to-period from our Marco Polo, Constitution and Poseidon Oil Pipelines was more than offset by a one-time expense of $8.8 million in the first nine months of 2007 associated with the early termination of Cameron Highway&#146;s credit facility.  Collectively, gross operating margin from our Marco Polo, Constitution and Poseidon Oil Pipelines increased $2.7 million period-to-period due to higher volumes and fees. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Petrochemical Services</font></i></u><font size=2>.  Gross operating margin from this business segment was $139.3 million for the first nine months of 2007 compared to $136.4 million for the first nine months of 2006.  Gross operating margin from butane isomerization was $71.7 million for the first nine months of 2007 compared to $57.1 million for the first nine months of 2006.  Butane isomerization volumes increased to 93 MBPD during the first nine months of 2007 from 83 MBPD during the first nine months of 2006.  The $14.6 million period-to-period increase in gross operating margin is largely due to higher processing volumes.    </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Gross operating margin from our octane enhancement business was $22.1 million for the first nine months of 2007 compared to $27.8 million for the first nine months of 2006.  The $5.7 million period-to-period decrease in gross operating margin is primarily due to lower sales margins.  Gross operating margin from our propylene fractionation business was $45.6 million for the first nine months of 2007 versus $51.5 million for the first nine months of 2006.  The $5.9 million period-to-period decrease in gross operating margin is largely due to lower propylene sales margins and higher power-related costs in the first nine months of 2007 versus the 2006 period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Liquidity and Capital Resources</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At September 30, 2007, we had $43.9 million of unrestricted cash on hand and approximately $1.1 billion of available credit under EPO&#146;s Multi-Year Revolving Credit Facility.  At September 30, 2007, there was approximately $83.9 million of available credit under Duncan Energy Partners&#146; Credit Facility.  We had approximately $6.8 billion in principal outstanding under consolidated debt agreements at September 30, 2007.  We were in compliance with the financial and other compliance requirements of our consolidated debt obligations at September 30, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>56</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We believe that we will have access to capital markets and continue to have adequate liquidity to fund future recurring operating and investing activities.  Our primary cash requirements, in addition to normal operating expenses and debt service, are for working capital, capital expenditures, business acquisitions and distributions to our partners.  We expect to fund our short-term needs for such items as operating expenses and sustaining capital expenditures with operating cash flows and short-term revolving credit arrangements.  Capital expenditures for long-term needs resulting from internal growth projects and business acquisitions are expected to be funded by a variety of sources (either separately or in combination) including operating cash flows, borrowings under credit facilities, the issuance of additional equity and debt securities and proceeds from divestitures of ownership
interest in assets to affiliates or third parties.  We expect to fund cash distributions to partners primarily with operating cash flows.  Our debt service requirements are expected to be funded by operating cash flows and/or refinancing arrangements.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Registration Statements</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We may issue equity or debt securities to assist us in meeting our liquidity and capital spending requirements. Duncan Energy Partners may do likewise in meeting its liquidity and capital spending requirements.  Enterprise Products Partners L.P. and EPO have a universal shelf registration statement on file with the U.S. Securities and Exchange Commission (&#147;SEC&#148;) that would allow these entities to issue an unlimited amount of debt and equity securities for general partnership purposes. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In addition, Enterprise Products Partners has filed a registration statement with the SEC authorizing the issuance of up to 25,000,000 of its common units in connection with a distribution reinvestment plan (&#147;DRIP&#148;).  The DRIP provides Enterprise Products Partners&#146; unitholders of record and beneficial owners of its common units a voluntary means by which they can increase the number of common units they own by reinvesting the quarterly cash distributions they would otherwise receive from Enterprise Products Partners into the purchase of additional common units.  During the nine-month period ended September 30, 2007, Enterprise Products Partners issued 1,518,291 of its common units in connection with the DRIP and a related plan.  The issuance of these common units generated $45.3 million in proceeds.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Credit Ratings of EPO</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At November 1, 2007, the investment-grade credit ratings of EPO&#146;s debt securities were Baa3 by Moody&#146;s Investor Services (&#147;Moody&#146;s&#148;); BBB- by Fitch Ratings (&#147;Fitch&#148;); and BBB- by Standard and Poor&#146;s (&#147;S&amp;P&#148;).  A rating reflects only the view of a rating agency and is not a recommendation to buy, sell or hold any indebtedness.  Any rating can be revised upward or downward or withdrawn at any time by a rating agency if it determines that the circumstances warrant such a change and should be evaluated independently of any other rating.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.17in; text-indent:0.08in;text-align:left;'><i><b><font size=2>Cash Flows from Operating, Investing and Financing Activities</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes our net cash flows from operating, investing and financing activities for the periods indicated (dollars in thousands).  For information regarding the individual components of our cash flow amounts, see the Unaudited Condensed Statements of Consolidated Cash Flows included under Item 1 of this quarterly report.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months </font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="83" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:12.0pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net cash flows provided by operating activities</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;937,835</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;986,024</font></p> </td> </tr>
    <tr style='height:12.0pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash used in investing activities</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,039,495</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,217,238</font></p> </td> </tr>
    <tr style='height:12.0pt'>
        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash provided by financing activities</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,122,575</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>306,516</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Net cash flows provided by operating activities are largely dependent on earnings from our business activities.  As a result, these cash flows are exposed to certain risks.  We operate predominantly in the midstream energy industry.  We provide services for producers and consumers of natural gas, NGLs </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>57</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>and crude oil.  The products that we process, sell or transport are principally used as fuel for residential, agricultural and commercial heating; feedstocks in petrochemical manufacturing; and in the production of motor gasoline.  Reduced demand for our services or products by industrial customers, whether because of general economic conditions, reduced demand for the end products made with our products or increased competition from other service providers or producers due to pricing differences or other reasons could have a negative impact on our earnings and thus the availability of cash from operating activities.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Operating activities</font></i></u><font size=2>.  Net cash flows from operating activities was $937.8 million for the nine months ended September 30, 2007 compared to $986.0 million for the same period in 2006.  The following information highlights significant factors that influenced the $48.2 million period-to-period decrease in net cash flows from operating activities:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash proceeds from business interruption and property damage claims decreased $63.4 million period-to-period.  For information regarding such proceeds, see Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Excluding cash proceeds from insurance claims, the timing of other cash receipts and payments related to our operations increased $36.8 million period-to-period primarily due to timing considerations and higher gross operating margins. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash payments for interest increased $43.1 million period-to-period primarily due to higher debt balances resulting from our capital spending program.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash distributions received from unconsolidated affiliates increased $25.3 million period-to-period primarily due to improved earnings from our Gulf of Mexico investments, which were negatively impacted during the nine months ended September 30, 2006 due to the lingering effects of Hurricanes Katrina and Rita.  </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>58</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Investing activities</font></i></u><font size=2>.  Cash used in investing activities was $2.04 billion for the nine months ended September 30, 2007 compared to $1.22 billion for the same period in 2006.  The $822.3 million increase in net cash outflows is primarily due to a $747.8 million increase in capital spending between periods.  The following table summarizes our cash basis capital spending by activity for the periods indicated (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="535" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="228" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months </font></b></p>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="228" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="5" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Capital spending for business combinations:</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Encinal acquisition, excluding non-cash equity consideration (1)</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;144,973</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" nowrap valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Additional ownership interests in Dixie Pipeline Company (&#147;Dixie&#148;) and other</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>785</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total </font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>785</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>144,973</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="5" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Capital spending for property, plant and equipment, net: </font></b><font size=1>(2)</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Growth capital projects (3)</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,531,679</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>881,397</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sustaining capital projects (4)</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>100,314</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>95,274</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total </font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>1,631,993</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>976,671</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="5" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Capital spending attributable to unconsolidated affiliates:</font></b></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investments in and advances to unconsolidated affiliates (5)</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>329,115</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>92,434</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>329,115</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>92,434</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total capital spending</font></b></p> </td>
        <td width="72" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,961,893</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,214,078</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="19" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="17" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="7" valign=top style=' padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;Excludes $181.1 million of non-cash consideration paid to the seller in the form of 7,115,844 of our common units.  See Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding our business combinations.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;On certain of our capital projects, third parties are obligated to reimburse us for all or a portion of project expenditures.  The majority of such arrangements are associated with projects related to pipeline construction and production well tie-ins. Such contributions in aid of construction costs were $52.3 million and $63.7 million for the nine months ended September 30, 2007 and 2006, respectively.  </font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;Growth capital projects either (i) result in additional revenue streams from existing assets or (ii) expand our asset base through construction of new facilities that will generate additional revenue streams.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(4)&nbsp;&nbsp;&nbsp;Sustaining capital expenditures are capital expenditures (as defined by GAAP) resulting from improvements to and major renewals of existing assets.  Such expenditures serve to maintain existing operations but do not generate additional revenues.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(5)&nbsp;&nbsp;&nbsp;The 2007 period includes $216.5 million in cash contributions to Cameron Highway Oil Pipeline Company (&#147;Cameron Highway&#148;) to fund our share of the repayment of its debt obligations.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Based on information currently available, we estimate our consolidated capital spending for the fourth quarter of 2007 will approximate $590.0 million, which includes estimated expenditures of $550.0 million for growth capital projects and acquisitions and $40.0 million for sustaining capital expenditures.  For information regarding selected major growth capital projects, please see &#147;Capital Spending&#148; under Item 7 of the annual report on Form 10-K for the year ended December 31, 2006. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our forecast of consolidated capital expenditures is based on our strategic operating and growth plans, which are dependent upon our ability to generate the required funds from either operating cash flows or from other means, including borrowings under debt agreements, issuance of equity and potential divestitures of certain assets to third and/or related parties.  Our forecast of capital expenditures may change due to factors beyond our control, such as weather related issues, changes in supplier prices, changes in our estimates or adverse economic conditions.  Furthermore, our forecast may change as a result of decisions made by management at a later date, which may include acquisitions or decisions to take on additional partners.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our success in raising capital, including the formation of joint ventures to share costs and risks, continues to be a principal factor that determines how much we can spend.  We believe our access to capital resources is sufficient to meet the demands of our current and future operating growth needs, and although we currently intend to make the forecasted expenditures discussed above, we may adjust the timing and amounts of projected expenditures in response to changes in capital markets.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At September 30, 2007, we had $534.0 million in outstanding purchase commitments.  These commitments primarily relate to growth capital projects in the Rocky Mountains that are expected to be </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>59</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>placed in service in 2007 and 2008 and the Shenzi Oil Export Pipeline Project, which is expected to be completed in 2009.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Cameron Highway repaid its $365.0 million Series A notes and $50.0 million Series B notes in May and June 2007, respectively, using cash contributions from its partners.  We funded our 50% share of the capital contributions using borrowings under EPO&#146;s Multi-Year Revolving Credit Facility.   Cameron Highway incurred an $11.0 million make-whole premium in connection with the repayment of its Series A notes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Cash outflows related to current and long-term restricted cash amounts increased by $73.3 million period-to-period primarily due to $39.3 million of Petal GO Zone bond proceeds held by a trustee and an increase in cash deposits at a brokerage firm in connection with our commodity hedging activities.  See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding the Petal GO Zone bonds.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><u><i><font size=2>Financing activities</font></i></u><font size=2>.  Cash provided by financing activities was $1.12 billion for the nine months ended September 30, 2007 versus $306.5 million for the same period in 2006.  The following information highlights significant factors that influenced the $816.1 million period-to-period change in cash provided by financing activities:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Net borrowings under our consolidated debt agreements increased $1.41 billion period-to-period.  In May 2007, EPO sold $700.0 million in principal amount of fixed/floating unsecured junior subordinated notes (Junior Notes B&#148;).  In September 2007, EPO sold $800.0 million in principal amount of fixed-rate unsecured senior notes (&#147;Senior Notes L&#148;).   For information regarding our consolidated debt obligations, see Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Net proceeds from the issuance of our common units decreased $790.2 million period-to-period.  We had underwritten equity offerings in March and September of 2006 that generated net proceeds of $750.8 million reflecting the sale of 31,050,000 common units.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Contributions from minority interests increased $279.9 million period-to-period primarily due to the initial public offering of Duncan Energy Partners in February 2007, which generated net proceeds of $290.5 million from the sale of 14,950,000 of its common units.   See &#147;Other Items &#150; Initial Public Offering of Duncan Energy Partners&#148; within this Item 2 for additional information regarding this offering.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash distributions to our partners increased $95.5 million period-to-period due to an increase in common units outstanding and our quarterly cash distribution rates.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>We received $48.9 million from the settlement of treasury lock contracts during the nine months ended September 30, 2007 related to our interest rate hedging activities.   </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Other Items</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Initial Public Offering of Duncan Energy Partners</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In September 2006, we formed a consolidated subsidiary, Duncan Energy Partners, to acquire, own and operate a diversified portfolio of midstream energy assets.  On February 5, 2007, this subsidiary completed its initial public offering of 14,950,000 common units (including an overallotment amount of 1,950,000 common units) at $21.00 per unit, which generated net proceeds to Duncan Energy Partners of $291.9 million.  As consideration for assets contributed and reimbursement for capital expenditures related to these assets, Duncan Energy Partners distributed $260.6 million of these net proceeds to us along with $198.9 million in borrowings under its credit facility and a final amount of 5,351,571 common units of Duncan Energy Partners. Duncan Energy Partners used $38.5 million of net proceeds from the overallotment to redeem 1,950,000 of the 7,301,571 common units it had originally issued
to Enterprise </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>60</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Products Partners, resulting in a final amount of 5,351,571 common units beneficially owned by Enterprise Products Partners. We used the cash received from Duncan Energy Partners to temporarily reduce amounts outstanding under EPO&#146;s Multi-Year Revolving Credit Facility. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For additional information regarding our relationship with Duncan Energy Partners, see Note 12 of the Notes to Unaudited Condensed Consolidated Financial Statements.  We may contribute or sell other equity interests in our subsidiaries to Duncan Energy Partners and use the proceeds we receive from Duncan Energy Partners to fund our capital spending program.  We have no obligation or commitment to make such contributions or sales to Duncan Energy Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Contractual Obligations</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>With the exception of the debt incurred by Duncan Energy Partners in connection with its initial public offering and the issuances of Junior Notes B and Senior Notes L by EPO, there have been no significant changes in our scheduled maturities of long-term debt since those reported in our annual report on Form 10-K for the year ended December 31, 2006.  See Note 9 of the Notes to the Unaudited Condensed Consolidated Financial Statements under Item 1 of this quarterly report for additional information regarding the debt obligations of Duncan Energy Partners and the issuances of Junior Notes B and Senior Notes L.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There have been no material changes in our operating lease commitments since December 31, 2006, except for the commitments associated with a new natural gas storage lease.  See Note 14 of the Notes to the Unaudited Condensed Consolidated Financial Statements under Item 1 of this quarterly report for additional information regarding the incremental operating lease obligations associated with our new natural gas storage lease agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table presents our consolidated debt obligations and related estimates of cash interest payments after giving effect to the debt incurred by Duncan Energy Partners and EPO&#146;s issuances of Junior Notes B and Senior Notes L as of September 30, 2007.  In addition, the following table presents the incremental operating lease obligations associated with our new natural gas storage lease (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="592" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="232" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="4" valign=top style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Payment or Settlement due by Period</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="232" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Less than</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>1-3</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>4-5</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>More than</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="232" valign=top style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Contractual Obligations</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>1 year</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>years</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>years</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>5 years</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="232" nowrap valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Scheduled maturities of long-term debt  (1)</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6,796,568</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,069,068</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,270,000</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4,457,500</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="232" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Estimated cash payments for interest (2)</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;9,133,378</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;435,093</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;840,517</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;652,263</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7,205,505</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="232" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="232" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Incremental operating lease obligations</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,344</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,896</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,448</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="232" valign=top style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:4.0pt'>
        <td  colspan="6" valign=top style=' padding:0in 1.5pt 0in 1.5pt; height:4.0pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;Represents payment obligations under our consolidated debt agreements, including those of Duncan Energy Partners as of September 30, 2007.  Amounts presented in the table represent the scheduled future maturities of long-term debt principal for the periods indicated.</font></p>
<p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;&nbsp;Represents estimates of future cash payments of interest assuming that principal amounts outstanding and the interest rates charged both remain at September 30, 2007 levels.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Off-Balance Sheet Arrangements</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In May 2007, we made a $191.0 million cash contribution to Cameron Highway.  This capital contribution, along with an equal amount contributed by our joint venture partner in Cameron Highway, was used by Cameron Highway to repay $365.0 million outstanding under its Series A notes and $14.1 million of related make-whole premiums and accrued interest.  In June 2007, we and our joint venture partner in Cameron Highway made an additional capital contribution of approximately $25.5 million each.  These capital contributions were used by Cameron Highway to repay its Series B notes.  The amount of the repayment was $50.9 million, which included $0.9 million of related make-whole premiums and accrued interest.  As a result of these events, Cameron Highway no longer has any outstanding debt. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>61</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Apart from the repayment of Cameron Highway&#146;s Series A and B notes, there have been no significant changes with regards to our off-balance sheet arrangements since those reported in our annual report on Form 10-K for the year ended December 31, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Summary of Related Party Transactions</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes our related party transactions for the periods indicated (dollars in thousands).  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="665" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="95" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="95" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Revenues from consolidated operations:</font></b></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>EPCO and affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91,630</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47,812</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;164,299</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86,892</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unconsolidated affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>87,209</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>84,551</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215,015</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>248,980</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;178,839</font></p> </td>
        <td width="95" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;132,363</font></p> </td>
        <td width="95" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;379,314</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;335,872</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Operating costs and expenses:</font></b></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>EPCO and affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74,910</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78,570</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;228,264</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;244,632</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unconsolidated affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,414</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,523</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>22,628</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19,113</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81,324</font></p> </td>
        <td width="95" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,093</font></p> </td>
        <td width="95" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;250,892</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;263,745</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>General and administrative costs:</font></b></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="16" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="270" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>EPCO and affiliates</font></p> </td>
        <td width="92" nowrap valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,504</font></p> </td>
        <td width="95" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,728</font></p> </td>
        <td width="95" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,292</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,566</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For additional information regarding our related party transactions, see Note 12 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We have an extensive and ongoing relationship with EPCO and its affiliates, including TEPPCO and Energy Transfer Equity.  Our revenues from EPCO and affiliates are primarily associated with sales of NGL products.  Our expenses with EPCO and affiliates are primarily due to (i) reimbursements we pay EPCO in connection with an administrative services agreement and (ii) purchases of NGL products.  TEPPCO is an affiliate of ours due to the common control relationship of both entities.  Enterprise GP Holdings acquired non-controlling ownership interests in both ETE GP and Energy Transfer Equity in May 2007.  As a result of this transaction, ETE GP and Energy Transfer Equity became related parties to us.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Many of our unconsolidated affiliates perform supporting or complementary roles to our consolidated business operations.  The majority of our revenues from unconsolidated affiliates relate to natural gas sales to a Louisiana affiliate.  The majority of our expenses with unconsolidated affiliates pertain to payments we make to K/D/S Promix, L.L.C. for NGL transportation, storage and fractionation services. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On February 5, 2007, our consolidated subsidiary, Duncan Energy Partners, completed an underwritten initial public offering of its common units.  Duncan Energy Partners was formed in September 2006 as a Delaware limited partnership to, among other things, acquire ownership interests in certain of our midstream energy businesses.  For additional information regarding Duncan Energy Partners, see &#147;Other Items &#150; Initial Public Offering of Duncan Energy Partners&#148; within this section.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>62</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><i><b><font size=2>Non-GAAP reconciliations </font></b></i></p>

<p style=' margin-bottom:3pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>A reconciliation of our measurement of total non-GAAP gross operating margin to GAAP operating income and income before provision for income taxes, minority interest and the cumulative effect of change in accounting principle follows (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months </font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td   colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="77" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="77" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total segment gross operating margin </font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;363,721</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;399,741</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,061,568</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;1,022,888</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Adjustments to reconcile total segment gross operating margin</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>to operating income:</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Depreciation, amortization and accretion in operating costs and expenses</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(133,869)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(112,412)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(374,522)</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(325,180)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating lease expense paid by EPCO</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(526)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(526)</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,579)</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(1,582)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Loss (gain) on sale of assets in operating costs and expenses</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>219</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,204</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(5,445)</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>3,401</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>General and administrative costs</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(18,715)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(15,823)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(66,706)</font></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(45,798)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Consolidated operating income</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>210,830</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>274,184</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>613,316</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>653,729</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:7.9pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other expense, net</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(83,369)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(60,657)</font></p> </td>
        <td width="77" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(213,327)</font></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(169,705)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td   colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Income before provision for income taxes, minority interest</font></p> </td>
        <td width="85"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="77" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="9"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="344"  valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>and cumulative effect of change in accounting principle</font></p> </td>
        <td width="85"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;127,461</font></p> </td>
        <td width="77" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;213,527</font></p> </td>
        <td width="77" valign=bottom style='border-bottom: double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399,989</font></p> </td>
        <td width="77"  valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:2.65pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;484,024</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>EPCO subleases to us certain equipment located at our Mont Belvieu facility and 100 railcars for $1 per year (the &#147;retained leases&#148;).  These subleases are part of the administrative services agreement that we executed with EPCO in connection with our formation in 1998.  EPCO holds this equipment pursuant to operating leases for which it has retained the corresponding cash lease payment obligation.  We record the full value of such lease payments made by EPCO as a non-cash related party operating expense, with the offset to partners&#146; equity recorded as a general contribution to our partnership.  Apart from the partnership interests we granted to EPCO at our formation, EPCO does not receive any additional ownership rights as a result of its contribution to us of the retained leases.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Cumulative effect of change in accounting principle</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Net income for the first quarter of 2006 includes a non-cash benefit of $1.5 million related to the cumulative effect of a change in accounting principle resulting from our adoption of SFAS 123(R) on January 1, 2006.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Recent Accounting Pronouncements</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The accounting standard setting bodies and the SEC have recently issued the following accounting guidance that will or may affect our financial statements:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>SFAS 157, &#147;Fair Value Measurements,&#148; and</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>SFAS 159, &#147;Fair Value Option for Financial Assets and Financial Liabilities &#150; Including an amendment of FASB Statement No. 115.&#148; </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For additional information regarding these recent accounting developments and others that may affect our future financial statements, see Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.38in;text-align:justify;'><i><b><font size=2>Amendment to Enterprise Products GP Limited Liability Company Agreement</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On November 7, 2007, Enterprise Products GP amended and restated its limited liability company agreement to provide, among other things, that:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>to the fullest extent permitted by law, any action (or inaction) taken (or omitted) by its independent directors consistent with our Partnership Agreement shall be permitted and deemed approved by Enterprise GP Holdings, the sole member of our general partner, and shall not </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>63</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>constitute a breach of Enterprise Products GP&#146;s limited liability company agreement, our Partnership Agreement or of any duty stated or implied by law or equity; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>&sect;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the duties and obligations that Enterprise Products GP&#146;s officers and directors owe to us are limited as set forth in our Partnership Agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><i><b><font size=2>Pipeline Integrity Costs</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our NGL, petrochemical and natural gas pipelines are subject to pipeline safety programs administered by the U.S. Department of Transportation, through its Office of Pipeline Safety.  The following table summarizes our pipeline integrity costs for the periods indicated (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="511" style='margin-left:0pt;border-collapse:collapse'>
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        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Three Months</font></b></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Nine Months</font></b></p> </td> </tr>
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        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td>
        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Ended September 30,</font></b></p> </td> </tr>
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        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2007</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </td> </tr>
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        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=1>Pipeline Integrity Costs</font></b></i></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=top style='border-top:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="199" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Operating Expense</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;11,315</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,097</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;34,987</font></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;21,389</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="199" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Capitalized</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15,679</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>15,539</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>41,543</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>32,894</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="24" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="199" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total</font></b></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;26,994</font></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;22,636</font></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;76,530</font></p> </td>
        <td width="72" valign=top style='border-bottom:double black 2.25pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;54,283</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We expect our net cash outlay for pipeline integrity program expenditures to approximate $15.6 million for the remainder of 2007.  Our forecast is net of certain costs we recovered from El Paso in connection with an indemnification agreement.  During the second and third quarter of 2007, we received $30.9 million and $0.2 million, respectively, from El Paso related to our 2006 expenditures.  During the second quarter of 2007 we reached the maximum amount reimbursable under the indemnification agreement.  We billed and received a final amount of $5.4 million from El Paso for 2007 pipeline integrity costs during October 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 3.  </font></b><i><b><font size=2>Quantitative and Qualitative Disclosures about Market Risk.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We are exposed to financial market risks, including changes in commodity prices and interest rates.  In addition, we are exposed to fluctuations in exchange rates between the U.S. dollar and Canadian dollar.  We may use financial instruments (i.e., futures, forwards, swaps, options and other financial instruments with similar characteristics) to mitigate the risks of certain identifiable and anticipated transactions.  In general, the types of risks we attempt to hedge are those related to (i) the variability of future earnings, (ii) fair values of certain debt instruments and (iii) cash flows resulting from changes in applicable interest rates, commodity prices or exchange rates.  As a matter of policy, we do not use financial instruments for speculative (or &#147;trading&#148;) purposes.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Interest Rate Risk Hedging Program</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our interest rate exposure results from variable and fixed rate borrowings under various debt agreements.  We manage a portion of our interest rate exposures by utilizing interest rate swaps and similar arrangements, which allow us to convert a portion of fixed rate debt into variable rate debt or a portion of variable rate debt into fixed rate debt.  The following information summarizes significant components of our interest rate risk hedging portfolio:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>64</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><b><font size=2>Fair value hedges &#150; Interest rate swaps</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As summarized in the following table, we had eleven interest rate swap agreements outstanding at September 30, 2007 that were accounted for as fair value hedges.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="648" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="54" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Number</font></b></p> </td>
        <td width="132" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Period Covered</font></b></p> </td>
        <td width="76" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Termination</font></b></p> </td>
        <td width="90" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Fixed to</font></b></p> </td>
        <td width="72" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Notional</font></b></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Hedged Fixed Rate Debt</font></b></p> </td>
        <td width="54" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Of Swaps</font></b></p> </td>
        <td width="132" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>by Swap</font></b></p> </td>
        <td width="76" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Date of Swap</font></b></p> </td>
        <td width="90" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Variable Rate </font></b><font size=1>(1)</font></p> </td>
        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Amount</font></b></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style=' padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes B, 7.50% fixed rate, due Feb. 2011</font></p> </td>
        <td width="54" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>1</font></p> </td>
        <td width="132" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Jan. 2004 to Feb. 2011</font></p> </td>
        <td width="76" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Feb. 2011</font></p> </td>
        <td width="90" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>7.50%  to 8.65%</font></p> </td>
        <td width="72" style=' padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$50 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes C, 6.375% fixed rate, due Feb. 2013</font></p> </td>
        <td width="54" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>2</font></p> </td>
        <td width="132" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Jan. 2004 to Feb. 2013</font></p> </td>
        <td width="76" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Feb. 2013</font></p> </td>
        <td width="90" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>6.38%  to 7.19%</font></p> </td>
        <td width="72" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$200 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes G, 5.6% fixed rate, due Oct. 2014</font></p> </td>
        <td width="54" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>6</font></p> </td>
        <td width="132" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>4th Qtr. 2004 to Oct. 2014</font></p> </td>
        <td width="76" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Oct. 2014</font></p> </td>
        <td width="90" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>5.60%  to 6.30%</font></p> </td>
        <td width="72" style='padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$600 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Senior Notes K, 4.95% fixed rate, due June 2010</font></p> </td>
        <td width="54" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>2</font></p> </td>
        <td width="132" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Aug. 2005 to June 2010</font></p> </td>
        <td width="76" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>June 2010</font></p> </td>
        <td width="90" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>4.95%  to 5.80%</font></p> </td>
        <td width="72" style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>$200 million</font></p> </td>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  width="1">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="7" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)  The variable rate indicated is the all-in variable rate for the current settlement period.</font></p> </td> </tr>
    <tr>
        <td width="1" ></td>

        <td width="222" ></td>

        <td width="54" ></td>

        <td width="132" ></td>

        <td width="76" ></td>

        <td width="90" ></td>

        <td width="72" ></td>

        <td width="1" ></td> </tr> </table>
            </div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The total fair value of these eleven interest rate swaps at September 30, 2007 and December 31, 2006, was a liability of $19.7 million and $29.1 million, respectively, with an offsetting decrease in the fair value of the underlying debt.  Interest expense for the three months ended September 30, 2007 and 2006 includes losses of $2.3 million and $1.9 million from these swap agreements, respectively.  For the nine months ended September 30, 2007 and 2006, interest expense includes losses of $6.9 million and $2.8 million, respectively, from these swap agreements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table shows the effect of hypothetical price movements on the estimated fair value of our interest rate swap portfolio and the related change in fair value of the underlying debt at the dates indicated (dollars in thousands).  Income is not affected by changes in the fair value of these swaps; however, these swaps effectively convert the hedged portion of fixed-rate debt to variable-rate debt.  As a result, interest expense (and related cash outlays for debt service) will increase or decrease with the change in the periodic &#147;reset&#148; rate associated with the respective swap.  Typically, the reset rate is an agreed upon index rate published for the first day of the six-month interest calculation period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="570" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="33" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="67" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="67" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="111" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Resulting</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Swap Fair Value at</font></b></p> </td>
        <td style='border-bottom:solid black 1.0pt' width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Scenario</font></b></p> </td>
        <td width="92" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Classification</font></b></p> </td>
        <td width="103" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, 2007</font></b></p> </td>
        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>October 29, 2007</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>FV assuming no change in underlying interest rates </font></p> </td>
        <td width="92" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><i><font size=1>Liability</font></i></p> </td>
        <td width="103" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(19,720)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(10,710)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>FV assuming 10% increase in underlying interest rates </font></p> </td>
        <td width="92" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><i><font size=1>Liability</font></i></p> </td>
        <td width="103" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(44,353)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(33,049)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>FV assuming 10% decrease in underlying interest rates </font></p> </td>
        <td width="92" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><i><font size=1>Asset</font></i></p> </td>
        <td width="103" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,914</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,629</font></p> </td> </tr>
    <tr>
        <td width="33" ></td>

        <td width="67" ></td>

        <td width="67" ></td>

        <td width="111" ></td>

        <td width="92" ></td>

        <td width="103" ></td>

        <td width="94" ></td>

        <td width="2" ></td> </tr> </table>
            </div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><i><b><font size=2>Cash flow hedges &#150; Treasury locks</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At times, we may use treasury lock financial instruments to hedge the underlying U.S. treasury rates related to our anticipated issuances of debt. Gains or losses on the termination of such instruments are amortized to earnings using the effective interest method over the estimated term of the underlying fixed-rate debt.  The following table summarizes changes in our treasury lock portfolio since December 31, 2006 (dollars in millions):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="507" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Notional </font></b></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Cash</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Amount </font></b></p> </td>
        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Gain (Loss)</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Treasury lock portfolio, December 31, 2006 (1)</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;562.5</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>First quarter of 2007 additions to portfolio (1)</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>437.5 </font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Second quarter of 2007 terminations (2)</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(875.0)</font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:35.15pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>42.3 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Third quarter of 2007 additions to portfolio (3)</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:35.1pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>875.0 </font></p> </td>
        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>--</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="3" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Third quarter of 2007 terminations (4)</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>(750.0)</font></p> </td>
        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:43.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>6.6 </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  nowrap colspan="4" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Treasury lock portfolio, September 30, 2007 (5)</font></p> </td>
        <td width="64" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:1.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;250.0 </font></p> </td>
        <td width="92" nowrap valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;48.9</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="64" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="64" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td colspan="7" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp;EPO entered into these transactions related to its anticipated issuances of debt in 2007.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(2)&nbsp;&nbsp;&nbsp;&nbsp;Terminations relate to the issuance of the Junior Notes B ($500.0 million) and Senior Notes L ($375.0 million).  Of the $42.3 million gain, $10.6 million relates to the Junior Notes B and the remainder to the Senior Notes L and its successor debt.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(3)&nbsp;&nbsp;&nbsp;&nbsp;EPO entered into these transactions related to its issuance of the Senior Notes L (including its successor debt) in August 2007 ($500.0 million) and anticipated issuance of debt during the first half of 2008 ($250.0 million) </font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(4)&nbsp;&nbsp;&nbsp;&nbsp;Terminations relate to the issuance of the Senior Notes L and its successor debt.</font></p>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(5)&nbsp;&nbsp;&nbsp;&nbsp;The fair value of these financial instruments at September 30, 2007 was $2.9 million.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>65</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Since September 30, 2007, we have executed an additional $350.0 million in notional amount of treasury lock financial instruments.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Commodity Risk Hedging Program</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The prices of natural gas, NGLs and certain petrochemical products are subject to fluctuations in response to changes in supply, market uncertainty and a variety of additional factors that are beyond our control.  In order to manage the price risks associated with such products, we may enter into commodity financial instruments.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The primary purpose of our commodity risk management activities is to hedge our exposure to price risks associated with (i) natural gas purchases, (ii) the value of NGL production and inventories, (iii) related firm commitments, (iv) fluctuations in transportation revenues where the underlying fees are based on natural gas index prices and (v) certain anticipated transactions involving either natural gas, NGLs or certain petrochemical products.  From time to time, we inject natural gas into storage and utilize hedging instruments to lock in the value of our inventory positions.  The commodity financial instruments we utilize may be settled in cash or with another financial instrument.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At September 30, 2007 and December 31, 2006, we had a limited number of commodity financial instruments in our portfolio, which primarily consisted of cash flow hedges.  The fair value of our commodity financial instrument portfolio at September 30, 2007 and December 31, 2006 was a liability of $23.4 million and $3.2 million, respectively.  During the three months ended September 30, 2007 and 2006, we recorded an expense of $10.5 million and an income of $7.8 million, respectively, related to our commodity financial instruments.  During the nine months ended September 30, 2007 and 2006, we recorded an expense of $11.9 million and income $2.4 million, respectively, related to our commodity financial instruments.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We assess the risk of our commodity financial instrument portfolio using a sensitivity analysis model.  The sensitivity analysis applied to this portfolio measures the potential income or loss (i.e., the change in fair value of the portfolio) based upon a hypothetical 10% movement in the underlying quoted market prices of the commodity financial instruments outstanding at the date indicated within the following table.  The following table shows the effect of hypothetical price movements on the estimated fair value (&#147;FV&#148;) of this portfolio at the dates presented (dollars in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="570" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="33" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="67" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="67" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="111" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Resulting</font></b></p> </td>
        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Commodity Financial Instrument Portfolio FV</font></b></p> </td>
        <td style='border-bottom:solid black 1.0pt' width="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Scenario</font></b></p> </td>
        <td width="92" valign=top style='border-bottom:solid black 1.0pt; padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Classification</font></b></p> </td>
        <td width="103" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>September 30, 2007</font></b></p> </td>
        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 1.5pt 0in 1.5pt;height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>October 29, 2007</font></b></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>FV assuming no change in underlying commodity prices </font></p> </td>
        <td width="92" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><i><font size=1>Liability</font></i></p> </td>
        <td width="103" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(23,392)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(21,765)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>FV assuming 10% increase in underlying commodity prices</font></p> </td>
        <td width="92" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><i><font size=1>Liability</font></i></p> </td>
        <td width="103" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(10,839)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(12,724)</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td  colspan="4" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>FV assuming 10% decrease in underlying commodity prices</font></p> </td>
        <td width="92" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><i><font size=1>Liability</font></i></p> </td>
        <td width="103" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(35,945)</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;(30,805)</font></p> </td> </tr>
    <tr>
        <td width="33" ></td>

        <td width="67" ></td>

        <td width="67" ></td>

        <td width="111" ></td>

        <td width="92" ></td>

        <td width="103" ></td>

        <td width="94" ></td>

        <td width="2" ></td> </tr> </table>
            </div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Foreign Currency Hedging Program</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We own an NGL marketing business located in Canada and have entered into construction agreements where payments are indexed to the Canadian dollar.  As a result, we could be adversely affected by fluctuations in the foreign currency exchange rate between the U.S. dollar and the Canadian dollar. We attempt to hedge this risk using foreign exchange purchase contracts to fix the exchange rate.  We use mark-to-market accounting for those foreign exchange contracts associated with our Canadian NGL marketing business.  The duration of these contracts is typically one month.  At September 30, 2007, $1.1 million of these exchange contracts were outstanding, all of which expired in October 2007.  The foreign exchange contracts associated with our construction activities are accounted for using hedge accounting.  At September 30, 2007, the fair value of these contracts was $2.9 million.  These
contracts settle through May 2008.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>66</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 4.  </font></b><i><b><font size=2>Controls and Procedures</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our management, with the participation of the chief executive officer (&#147;CEO&#148;) and chief financial officer (&#147;CFO&#148;) of Enterprise Products GP, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report.  Based on their evaluation, the CEO and CFO of Enterprise Products GP have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e)) are effective at a reasonable assurance level. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC&#146;s rules and forms, including to ensure that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.  Our management does not expect that our disclosure controls and procedures will prevent all errors and all fraud.  Based on the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The certifications of our general partner&#146;s CEO and CFO required under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 have been included as exhibits to this quarterly report on Form 10-Q.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PART II.  OTHER INFORMATION.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 1.  </font></b><i><b><font size=2>Legal Proceedings</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>See Part I, Item 1, Financial Statements, Note 14, &#147;Commitments and Contingencies &#150; Litigation,&#148; of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report, which is incorporated herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 1A.  </font></b><i><b><font size=2>Risk Factors</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In general, there have been no significant changes in our risk factors since December 31, 2006 other than the risk factor noted below.  For a detailed discussion of our risk factors, please read, Item 1A &#147;Risk Factors,&#148; in our annual report on Form 10-K for 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><b><font size=2>Tax Risks to Common Unitholders </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><b><font size=2>We have adopted certain methodologies that may result in a shift of income, gain, loss and deduction between the general partner and the unitholders. The Internal Revenue Service (&#147;IRS&#148;) may challenge this treatment, which could adversely affect the value of our common units. </font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>When we issue additional units or engage in certain other transactions, we determine the fair market value of our assets and allocate any unrealized gain or loss attributable to our assets to the capital accounts of our unitholders and our general partner. Our methodology may be viewed as understating the value of our assets. In that case, there may be a shift of income, gain, loss and deduction between certain unitholders and the general partner, which may be unfavorable to such unitholders. Moreover, under this methodology, subsequent purchasers of common units may have a greater portion of their Internal Revenue Code Section&nbsp;743(b) adjustment allocated to our tangible assets and a lesser portion allocated to our intangible assets. The IRS may challenge our methods, or our allocation of the Section&nbsp;743(b) adjustment attributable to our tangible and intangible assets, and
allocations of income, gain, loss and deduction between the general partner and certain of our unitholders. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>67</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A successful IRS challenge to these methods or allocations could adversely affect the amount of taxable income or loss being allocated to our unitholders. It also could affect the amount of gain from our unitholders&#146; sale of common units and could have a negative impact on the value of the common units or result in audit adjustments to our unitholders&#146; tax returns without the benefit of additional deductions. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 2.  </font></b><i><b><font size=2>Unregistered Sales of Equity Securities and Use of Proceeds</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We did not repurchase any of our common units during the three and nine months ended September 30, 2007.  As of September 30, 2007, we and our affiliates are authorized to repurchase up to 618,400 common units under the December 1998 common unit repurchase program.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 3.  </font></b><i><b><font size=2>Defaults Upon Senior Securities</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="101" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="53" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>None.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 4.  </font></b><i><b><font size=2>Submission of Matters to a Vote of Security Holders</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="101" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="53" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>None.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 5.  </font></b><i><b><font size=2>Other Information</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="101" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="53" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>None.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 6.  </font></b><i><b><font size=2>Exhibits</font></b></i><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="71" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p  align=center style='text-align:center'><font size=2>Exhibit Number</font></p> </td>
        <td width="599" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
            <p  align=center style='text-align:center'><font size=2>Exhibit*</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>2.1</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Merger Agreement, dated as of December 15, 2003, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products Management LLC, GulfTerra Energy Partners, L.P. and GulfTerra Energy Company, L.L.C. (incorporated by reference to Exhibit 2.1 to Form 8-K filed December 15, 2003).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>2.2</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Amendment No. 1 to Merger Agreement, dated as of August 31, 2004, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products Management LLC, GulfTerra Energy Partners, L.P. and GulfTerra Energy Company, L.L.C. (incorporated by reference to Exhibit 2.1 to Form 8-K filed September 7, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>2.3</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Parent Company Agreement, dated as of December 15, 2003, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products GTM, LLC, El Paso Corporation, Sabine River Investors I, L.L.C., Sabine River Investors II, L.L.C., El Paso EPN Investments, L.L.C. and GulfTerra GP Holding Company (incorporated by reference to Exhibit 2.2 to Form 8-K filed December 15, 2003).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>2.4</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Amendment No. 1 to Parent Company Agreement, dated as of April 19, 2004, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products GTM, LLC, El Paso Corporation, Sabine River Investors I, L.L.C., Sabine River Investors II, L.L.C., El Paso EPN Investments, L.L.C. and GulfTerra GP Holding Company (incorporated by reference to Exhibit 2.1 to the Form 8-K filed April 21, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>2.5</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Purchase and Sale Agreement (Gas Plants), dated as of December 15, 2003, by and between El Paso Corporation, El Paso Field Services Management, Inc., El Paso Transmission, L.L.C., El Paso Field Services Holding Company and Enterprise Products Operating L.P. (incorporated by reference to Exhibit 2.4 to Form 8-K filed December 15, 2003).&nbsp;</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>3.1</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Fifth Amended and Restated Agreement of Limited Partnership of Enterprise Products Partners L.P., dated effective as of August 8, 2005 (incorporated by reference to Exhibit 3.1 to Form 8-K filed August 10, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>3.2#</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Fifth Amended and Restated Limited Liability Company Agreement of Enterprise Products GP, LLC, dated as of November 7, 2007.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>68</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>3.3</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Limited Liability Company Agreement of Enterprise Products Operating LLC dated as of June 30, 2007 (incorporated by reference to Exhibit 3.3 to Form 10-Q filed on August 8, 2007).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>3.4</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Certificate of Incorporation of Enterprise Products OLPGP, Inc., dated December 3, 2003 (incorporated by reference to Exhibit 3.5 to Form S-4 Registration Statement, Reg. No. 333-121665, filed December 27, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>3.5</font></p></td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Bylaws of Enterprise Products OLPGP, Inc., dated December 8, 2003 (incorporated by reference to Exhibit 3.6 to Form S-4 Registration Statement, Reg. No. 333-121665, filed December 27, 2004). </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>3.6#</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Certificate of Limited Partnership of Enterprise Products Partners L.P.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.1</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Indenture dated as of March 15, 2000, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and First Union National Bank, as Trustee (incorporated by reference to Exhibit 4.1 to Form 8-K filed March 10, 2000).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.2</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>First Supplemental Indenture dated as of January 22, 2003, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Registration Statement on Form S-4, Reg. No. 333-102776, filed January 28, 2003).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.3</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Second Supplemental Indenture dated as of February 14, 2003, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to Form 10-K filed March 31, 2003).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.4</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Third Supplemental Indenture dated as of June 30, 2007, among Enterprise Products Operating LLC, as Issuer, Enterprise Products Partners L.P., as Guarantor, and U.S. Bank National Association, as successor Trustee (incorporated by reference to Exhibit 4.55 to Form 10-Q filed on August 8, 2007) .</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.5</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Form of Common Unit certificate (incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-1/A; File No. 333-52537, filed July 21, 1998).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.6</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>$750 Million Multi-Year Revolving Credit Agreement dated as of August 25, 2004, among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents, and Mizuho Corporate Bank, Ltd., SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.1 to Form 8-K filed on August 30, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.7</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>First Amendment dated October 5, 2005, to Multi-Year Revolving Credit Agreement dated as of August 25, 2004, among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as CO-Syndication Agents, and Mizuho Corporate Bank, Ltd., SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.3 to Form 8-K filed on October 7, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.8</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Second Amendment dated June 22, 2006, to Multi-Year Revolving Credit Agreement dated as of August 25, 2004 among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents and Mizuho Corporate Bank, LTD., SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.6 to Form 10-Q filed August 8, 2006).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.9</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Third Amendment dated January 5, 2007, to Multi-Year Revolving Credit Agreement dated as of August 25, 2004 among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents and Mizuho Corporate Bank, LTD, SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents. (incorporated by reference to Exhibit 4.47 to Form 10-K filed February 28, 2006).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.10</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Fourth Amendment dated June 30, 2007, to Multi-Year Revolving Credit Agreement dated as of August&nbsp;25, 2004 among Enterprise Products Operating LLC, the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents and Mizuho Corporate Bank, LTD, SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.56 to Form 10-Q filed on August 8, 2007).</font></p> </td> </tr>
    </table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>69</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
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<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.11</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Guaranty Agreement dated as of August 25, 2004, by Enterprise Products Partners L.P. in favor of Wachovia Bank, National Association, as Administrative Agent for the several lenders that are or become parties to the Credit Agreement included as Exhibit 4.6, above (incorporated by reference to Exhibit 4.2 to Form 8-K filed on August 30, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.12</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to Form 8-K filed on October 6, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.13</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>First Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K filed on October 6, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.14</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Second Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to Form 8-K filed on October 6, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.15</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Third Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.4 to Form 8-K filed on October 6, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.16</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Fourth Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.5 to Form 8-K filed on October 6, 2004).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.17</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Fifth Supplemental Indenture dated as of March 2, 2005, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K filed on March 3, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.18</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Sixth Supplemental Indenture dated as of March 2, 2005, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to Form 8-K filed on March 3, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.19</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Seventh Supplemental Indenture dated as of June 1, 2005, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.46 to Form 10-Q filed November 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.20</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Eighth Supplemental Indenture dated as of July 18, 2006 to Indenture dated October 4, 2004 among Enterprise Products Operating L.P., as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to exhibit 4.2 to Form 8-K filed July 19, 2006).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.21</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Ninth Supplemental Indenture, dated as of May&nbsp;24, 2007, by and among Enterprise Products Operating L.P., as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit&nbsp;4.2 to the Current Report on Form&nbsp;8-K filed by Enterprise Products Partners L.P. on May&nbsp;24, 2007).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.22</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Tenth Supplemental Indenture, dated as of June 30, 2007, by and among Enterprise Products Operating LLC, as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.54 to Form 10-Q filed August 8, 2007).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.23</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Eleventh Supplemental Indenture, dated as of September 4, 2007, by and among Enterprise Products Operating LLC, as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.3 to Form 8-K filed on September 5, 2007).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.24</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $350 million principal amount of 6.375% Series B Senior Notes due 2013 with attached Guarantee (incorporated by reference to Exhibit 4.4 to Registration Statement on Form S-4, Reg. No. 333-102776, filed January 28, 2003).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.25</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $500 million principal amount of 6.875% Series B Senior Notes due 2033 with attached Guarantee (incorporated by reference to Exhibit 4.8 to Form 10-K filed March</font></p> </td> </tr>
    </table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>70</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="670" style='border-collapse:collapse'>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>&nbsp;</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>31, 2003). </font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.26</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Notes representing $450 million principal amount of 7.50% Senior Notes due 2011 (incorporated by reference to Exhibit 4.1 to Form 8-K filed January 25, 2001).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.27</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $500 million principal amount of 4.000% Series B Senior Notes due 2007 with attached Guarantee (incorporated by reference to Exhibit 4.14 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.28</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $500 million principal amount of 5.600% Series B Senior Notes due 2014 with attached Guarantee (incorporated by reference to Exhibit 4.17 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.29</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $150 million principal amount of 5.600% Series B Senior Notes due 2014 with attached Guarantee (incorporated by reference to Exhibit 4.18 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.30</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $350 million principal amount of 6.650% Series B Senior Notes due 2034 with attached Guarantee (incorporated by reference to Exhibit 4.19 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.31</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $500 million principal amount of 4.625% Series B Senior Notes due 2009 with attached Guarantee (incorporated by reference to Exhibit 4.27 to Form 10-K for the year ended December 31, 2004 filed on March 15, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.32</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Global Note representing $250,000,000 principal amount of 5.00% Series B Senior Notes due 2015 with attached Guarantee (incorporated by reference to Exhibit 4.31 to Form 10-Q filed on November 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.33</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Global Note representing $250,000,000 principal amount of 5.75% Series B Senior Notes due 2035 with attached Guarantee (incorporated by reference to Exhibit 4.32 to Form 10-Q filed on November 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.34</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Global Note representing $500,000,000 principal amount of 4.95% Senior Notes due 2010 with attached Guarantee (incorporated by reference to Exhibit 4.47 to Form 10-Q filed November 4, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.35</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Amended and Restated Credit Agreement dated as of June&nbsp;29, 2005, among Cameron Highway Oil Pipeline Company, the Lenders party thereto, and SunTrust Bank, as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 4.1 to Form 8-K filed on July 1, 2005).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.36</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Form of Junior Note, including Guarantee (incorporated by reference to Exhibit 4.3 to Form 8-K file July 19, 2006).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.37</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Purchase Agreement, dated as of July 12, 2006 between Cerrito Gathering Company, Ltd., Cerrito Gas Marketing, Ltd., Encinal Gathering, Ltd., as Sellers, Lewis Energy Group, L.P. as Guarantor, and Enterprise Products Partners L.P., as buyer (incorporated by reference to Exhibit 4.6 to Form 10-Q filed August 8, 2006).</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>4.38#</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Global Note representing $800,000,000 principal amount of 6.30% Senior Notes due 2017 with attached Guarantee.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>10.1#***</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Enterprise Products 1998 Long-Term Incentive Plan, amended and restated as of November 9 2007.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>10.2#***</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Form of Option Grant Award under Enterprise Products 1998 Long-Term Incentive Plan.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>10.3#***</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Form of Restricted Unit Grant under the Enterprise Products 1998 Long-Term Incentive Plan.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>31.1#</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Sarbanes-Oxley Section 302 certification of Michael A. Creel for Enterprise Products Partners L.P. for the September 30, 2007 quarterly report on Form 10-Q.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>31.2#</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Sarbanes-Oxley Section 302 certification of W. Randall Fowler for Enterprise Products Partners L.P. for the September 30, 2007 quarterly report on Form 10-Q.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>32.1#</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Section 1350 certification of Michael A. Creel for the September 30, 2007 quarterly report on Form 10-Q.</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="71" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p ><font size=2>32.2#</font></p> </td>
        <td width="599" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p  style='text-align:justify'><font size=2>Section 1350 certification of W. Randall Fowler for the September 30, 2007 quarterly report on Form 10-Q.</font></p> </td> </tr></table>
</div>
<BR>
<div align=left>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>*  </font></p> </td>
        <td width="606" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>With respect to any exhibits incorporated by reference to any Exchange Act filings, the Commission file number for Enterprise Products Partners L.P. is 1-14323; Enterprise GP Holdings L.P., 1-32610; and Duncan Energy Partners L.P., 1-33266.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>***</font></p> </td>
        <td width="389" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Identifies management contract and compensatory plan arrangement.</font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="16" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>#</font></p> </td>
        <td width="137" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Filed with this report.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>71</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized, in the City of Houston, State of Texas on November 9, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ENTERPRISE PRODUCTS PARTNERS L.P.</font></B></p> </td> </tr></table>
</div>



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    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="204" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A Delaware Limited Partnership)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:  </font></p> </td>
        <td width="180" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Enterprise Products GP, LLC,</font></p> </td> </tr></table>
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        <td width="288" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>as General Partner</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="43" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:  </font></p> </td>
        <td width="283" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>___/s/ Michael J. Knesek___________________</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:  </font></p> </td>
        <td width="119" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Michael J. Knesek</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:  </font></p> </td>
        <td width="199" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior Vice President, Controller</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="199" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>and Principal Accounting Officer</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="136" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of the general partner</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>72</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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{"company-data": {"conformed-name": "ENTERPRISE PRODUCTS PARTNERS L P", "cik": "0001061219", "assigned-sic": "1311", "irs-number": "760568219", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-14323", "film-number": "071227279"}, "business-address": {"street1": "1100 LOUISIANA 10TH FLOOR", "city": "HOUSTON", "state": "TX", "zip": "77002", "phone": "7133816500"}, "mail-address": {"street1": "1100 LOUISIANA 10TH FLOOR", "city": "HOUSTON", "state": "TX", "zip": "77002"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2007
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___  to ___.
Commission file number:  1-14323
ENTERPRISE PRODUCTS PARTNERS L.P.
(Exact name of Registrant as Specified in Its Charter)
Delaware
76-0568219
(State or Other Jurisdiction of
(I.R.S. Employer Identification No.)
Incorporation or Organization)
1100 Louisiana, 10th Floor
Houston, Texas  77002
(Address of Principal Executive Offices, Including Zip Code)
(713) 381-6500
(Registrant's Telephone Number, Including Area Code)
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
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer [   ]                  Non-accelerated filer   [   ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
o
No
x
There were 434,736,708 common units of Enterprise Products Partners L.P. outstanding at November 1, 2007.  These common units trade on the New York Stock Exchange under the ticker symbol "EPD."
ENTERPRISE PRODUCTS PARTNERS L.P.
TABLE OF CONTENTS
Page No.
PART I.  FINANCIAL INFORMATION.
Item 1.
Financial Statements.
Unaudited Condensed Consolidated Balance Sheets
2
Unaudited Condensed Statements of Consolidated Operations
3
Unaudited Condensed Statements of Consolidated Comprehensive Income
4
Unaudited Condensed Statements of Consolidated Cash Flows
5
Unaudited Condensed Statements of Consolidated Partners' Equity
6
Notes to Unaudited Condensed Consolidated Financial Statements:
1.  Partnership Organization
7
2.  General Accounting Policies and Related Matters
8
3.  Accounting for Unit-Based Awards
11
4.  Financial Instruments
14
5.  Inventories
16
6.  Property, Plant and Equipment
17
7.  Investments in and Advances to Unconsolidated Affiliates
18
8.  Intangible Assets and Goodwill
21
9.  Debt Obligations
22
10.  Partners' Equity and Distributions
26
11.  Business Segments
29
12.  Related Party Transactions
32
13.  Earnings Per Unit
36
14.  Commitments and Contingencies
38
15.  Significant Risks and Uncertainties – Weather-Related Risks
40
16.  Supplemental Cash Flow Information
41
17.  Condensed Financial Information of EPO
42
18.  Subsequent Event
43
Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations.
44
Item 3.
Quantitative and Qualitative Disclosures about Market Risk.
64
Item 4.
Controls and Procedures.
67
PART II.  OTHER INFORMATION.
Item 1.
Legal Proceedings.
67
Item 1A.
Risk Factors.
67
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
68
Item 3.
Defaults upon Senior Securities.
68
Item 4.
Submission of Matters to a Vote of Security Holders.
68
Item 5.
Other Information.
68
Item 6.
Exhibits.
68
Signatures
72
1
PART I.  FINANCIAL INFORMATION.
Item 1.
Financial Statements
.
ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30,
December 31,
ASSETS
2007
2006
Current assets:
Cash and cash equivalents
$           43,881
$           22,619
Restricted cash
63,910
23,667
Accounts and notes receivable - trade, net of allowance for doubtful accounts
of $21,994 at September 30, 2007 and $23,406 at December 31, 2006
1,532,658
1,306,290
Accounts receivable - related parties
57,540
16,738
Inventories
509,888
423,844
Prepaid and other current assets
167,960
129,000
Total current assets
2,375,837
1,922,158
Property, plant and equipment, net
11,133,395
9,832,547
Investments in and advances to unconsolidated affiliates
854,825
564,559
Intangible assets, net of accumulated amortization of $319,061 at
September 30, 2007 and $251,876 at December 31, 2006
928,201
1,003,955
Goodwill
591,644
590,541
Deferred tax asset
2,453
1,855
Other assets
119,650
74,103
Total assets
$    16,006,005
$    13,989,718
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Accounts payable – trade
$         326,306
$         277,070
Accounts payable – related parties
21,038
6,785
Accrued product payables
1,719,001
1,364,493
Accrued expenses
48,891
35,763
Accrued interest
100,885
90,865
Other current liabilities
259,882
209,945
Total current liabilities
2,476,003
1,984,921
Long-term debt:
(see Note 9)
Senior debt obligations – principal
5,546,568
4,779,068
Junior subordinated notes – principal
1,250,000
550,000
Other
(24,580)
(33,478)
Total long-term debt
6,771,988
5,295,590
Deferred tax liabilities
16,966
13,723
Other long-term liabilities
85,388
86,121
Minority interest
430,800
129,130
Commitments and contingencies
Partners' equity:
Limited partners
Common units (433,062,984 units outstanding at September 30, 2007
and 431,303,193 units outstanding at December 31, 2006)
6,044,028
6,320,577
Restricted common units (1,673,724 units outstanding at September 30, 2007
and 1,105,237 units outstanding at December 31, 2006)
13,536
9,340
General partner
123,965
129,175
Accumulated other comprehensive income
43,331
21,141
Total partners' equity
6,224,860
6,480,233
Total liabilities and partners' equity
$    16,006,005
$    13,989,718
See Notes to Unaudited Condensed Consolidated Financial Statements.
2
ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(Dollars in thousands, except per unit amounts)
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Revenues:
Third parties
$    3,933,157
$    3,740,162
$    11,268,342
$    10,304,580
Related parties
178,839
132,363
379,314
335,872
Total (see Note 11)
4,111,996
3,872,525
11,647,656
10,640,452
Costs and expenses:
Operating costs and expenses:
Third parties
3,815,087
3,501,690
10,730,670
9,691,486
Related parties
81,324
83,093
250,892
263,745
Total operating costs and expenses
3,896,411
3,584,783
10,981,562
9,955,231
General and administrative costs:
Third parties
7,211
5,095
21,414
13,232
Related parties
11,504
10,728
45,292
32,566
Total general and administrative costs
18,715
15,823
66,706
45,798
Total costs and expenses
3,915,126
3,600,606
11,048,268
10,001,029
Equity in income of unconsolidated affiliates
13,960
2,265
13,928
14,306
Operating income
210,830
274,184
613,316
653,729
Other income (expense):
Interest expense
(85,075)
(62,793)
(219,708)
(177,203)
Interest income
2,300
2,112
6,743
5,228
Other, net
(594)
24
(362)
2,270
Other expense
(83,369)
(60,657)
(213,327)
(169,705)
Income before provision for income taxes,
minority interest and the cumulative effect of
change in accounting principle
127,461
213,527
399,989
484,024
Provision for income taxes
(2,073)
(3,285)
(9,001)
(12,449)
Income before minority interest and the cumulative
effect of change in accounting principle
125,388
210,242
390,988
451,575
Minority interest
(7,782)
(1,940)
(19,183)
(4,676)
Income before the cumulative effect of change in
accounting principle
117,606
208,302
371,805
466,899
Cumulative effect of change in
accounting principle (see Note 2)
--
--
--
1,475
Net income
$       117,606
$       208,302
$         371,805
$         468,374
Net income allocation:
(see Note 13)
Limited partners' interest in net income
$         88,408
$       182,198
$         286,984
$         397,759
General partner interest in net income
$         29,198
$         26,104
$           84,821
$           70,615
Earning per unit:
(see Note 13)
Basic and diluted income per unit
before change in accounting principle
$             0.20
$             0.43
$               0.66
$               0.97
Basic and diluted income per unit
$             0.20
$             0.43
$               0.66
$               0.97
See Notes to Unaudited Condensed Consolidated Financial Statements.
3
ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED
COMPREHENSIVE INCOME
(Dollars in thousands)
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Net income
$    117,606
$    208,302
$    371,805
$    468,374
Other comprehensive income:
Cash flow hedges:
Net commodity financial instrument gains (losses)
(22,292)
12,580
(21,446)
4,880
Foreign currency hedge gains
2,879
--
2,879
--
Net interest rate financial instrument gains (losses)
373
(1,638)
40,637
--
Less:  Amortization of cash flow financing hedges
(1,096)
(1,065)
(3,365)
(3,158)
Total cash flow hedges
(20,136)
9,877
18,705
1,722
Foreign currency translation adjustment
1,832
--
2,381
--
Total other comprehensive income
(18,304)
9,877
21,086
1,722
Comprehensive income
$      99,302
$    218,179
$    392,891
$    470,096
See Notes to Unaudited Condensed Consolidated Financial Statements.
4
ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Dollars in thousands)
For the Nine Months
Ended September 30,
2007
2006
Operating activities:
Net income
$    371,805
$    468,374
Adjustments to reconcile net income to net cash
flows provided by operating activities:
Depreciation, amortization and accretion in operating costs and expenses
374,522
325,180
Depreciation and amortization in general and administrative costs
7,129
5,482
Amortization in interest expense
432
641
Equity in income of unconsolidated affiliates
(13,928)
(14,306)
Distributions received from unconsolidated affiliates
52,343
27,085
Cumulative effect of change in accounting principle
--
(1,475)
Operating lease expense paid by EPCO, Inc.
1,579
1,582
Minority interest
19,183
4,676
Loss (gain) on sale of assets
5,445
(3,401)
Deferred income tax expense
5,542
12,378
Changes in fair market value of financial instruments
3,511
(41)
Net effect of changes in operating accounts (see Note 16)
110,272
159,849
Net cash flows provided by operating activities
937,835
986,024
Investing activities:
Capital expenditures
(1,684,455)
(1,040,341)
Contributions in aid of construction costs
52,462
63,670
Proceeds from sale of assets
1,933
3,043
Increase in restricted cash
(79,535)
(6,203)
Cash used for business combinations
(785)
(144,973)
Investments in unconsolidated affiliates
(318,491)
(100,312)
Advances from (to) unconsolidated affiliates
(10,624)
7,878
Cash used in investing activities
(2,039,495)
(1,217,238)
Financing activities:
Borrowings under debt agreements
4,926,858
2,648,285
Repayments of debt
(3,459,881)
(2,587,000)
Debt issuance costs
(15,281)
--
Distributions paid to partners
(711,739)
(616,261)
Distributions paid to minority interests
(20,485)
(4,643)
Net proceeds from initial public offering of Duncan Energy Partners reflected
as a contribution from minority interests (see Notes 1 and 2)
290,466
--
Other contributions from minority interests
12,506
23,091
Settlement of treasury lock contracts
48,895
--
Repurchase of restricted units and options
(1,568)
--
Net proceeds from issuance of our common units
52,804
843,044
Cash provided by financing activities
1,122,575
306,516
Effect of exchange rate changes on cash flows
347
--
Net change in cash and cash equivalents
20,915
75,302
Cash and cash equivalents, January 1
22,619
42,098
Cash and cash equivalents, September 30
$      43,881
$    117,400
See Notes to Unaudited Condensed Consolidated Financial Statements.
5
ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED PARTNERS' EQUITY
(See Note 10 for Unit History and Detail of Changes in Limited Partners' Equity)
(Dollars in thousands)
Limited
General
Partners
Partner
AOCI
Total
Balance, December 31, 2006
$    6,329,917
$    129,175
$    21,141
$    6,480,233
Net income
286,984
84,821
--
371,805
Operating leases paid by EPCO, Inc.
1,548
31
--
1,579
Cash distributions to partners
(617,260)
(91,567)
--
(708,827)
Net proceeds from sales of common units
44,089
1,210
--
45,299
Proceeds from exercise of unit options
7,451
213
--
7,664
Repurchase of restricted units and options
(1,568)
--
--
(1,568)
Unit option reimbursements to EPCO, Inc.
(2,859)
(58)
--
(2,917)
Change in funded status of pension and
postretirement plans, net of tax
--
--
1,104
1,104
Amortization of equity awards
9,262
140
--
9,402
Foreign currency translation adjustment
--
--
2,381
2,381
Cash flow hedges
--
--
18,705
18,705
Balance, September 30, 2007
$    6,057,564
$    123,965
$    43,331
$    6,224,860
See Notes to Unaudited Condensed Consolidated Financial Statements.
6
ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1.  Partnership Organization
Partnership Organization
Enterprise Products Partners L.P. is a publicly traded Delaware limited partnership, the common units of which are listed on the New York Stock Exchange ("NYSE") under the ticker symbol "EPD."  Unless the context requires otherwise, references to "we," "us," "our," or "Enterprise Products Partners" are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries.
We were formed in April 1998 to own and operate certain natural gas liquids ("NGLs") related businesses of EPCO, Inc. ("EPCO").  We conduct substantially all of our business through our wholly owned subsidiary, Enterprise Products Operating LLC ("EPO"), as successor in interest by merger to Enterprise Products Operating L.P.  We are owned 98% by our limited partners and 2% by Enterprise Products GP, LLC (our general partner, referred to as "Enterprise Products GP").  Enterprise Products GP is owned 100% by Enterprise GP Holdings L.P. ("Enterprise GP Holdings"), a publicly traded affiliate, the units of which are listed on the NYSE under the ticker symbol "EPE."  The general partner of Enterprise GP Holdings is EPE Holdings, LLC ("EPE Holdings"), a wholly owned subsidiary of Dan Duncan LLC, the membership interests of
which are owned by Dan L. Duncan.  We, Enterprise Products GP, Enterprise GP Holdings, EPE Holdings and Dan Duncan LLC are affiliates under the common control of Dan L. Duncan, the Chairman and controlling shareholder of EPCO.
References to "TEPPCO" mean TEPPCO Partners, L.P., a publicly traded affiliate, the units of which are listed on the NYSE under the ticker symbol "TPP."  References to "TEPPCO GP" refer to Texas Eastern Products Pipeline Company, LLC, which is the general partner of TEPPCO and is wholly owned by Enterprise GP Holdings.
References to "Energy Transfer Equity" mean the business and operations of Energy Transfer Equity, L.P. and its consolidated subsidiaries.  References to "ETE GP" mean LE GP, LLC, which is the general partner of Energy Transfer Equity.  On May 7, 2007, Enterprise GP Holdings acquired non-controlling interests in both ETE GP and Energy Transfer Equity.
References to "Employee Partnerships" mean EPE Unit L.P. ("EPE Unit I"), EPE Unit II, L.P. ("EPE Unit II") and EPE Unit III, L.P. ("EPE Unit III"), collectively, which are private company affiliates of EPCO.
On February 5, 2007, a consolidated subsidiary of ours, Duncan Energy Partners L.P. ("Duncan Energy Partners"), completed an initial public offering of its common units (see Note 12).  Duncan Energy Partners owns equity interests in certain of our midstream energy businesses.
For financial reporting purposes, we consolidate the financial statements of Duncan Energy Partners with those of our own and reflect its operations in our business segments.  We control Duncan Energy Partners through our ownership of its general partner.  Also, due to common control of the entities by Dan L. Duncan, the initial consolidated balance sheet of Duncan Energy Partners reflects our historical carrying basis in each of the subsidiaries contributed to Duncan Energy Partners.  Public ownership of Duncan Energy Partners' net assets and earnings are presented as a component of minority interest in our consolidated financial statements.  The borrowings of Duncan Energy Partners are presented as part of our consolidated debt; however, we do not have any obligation for the payment of interest or repayment of borrowings incurred by Duncan Energy Partners.
7
Basis of Presentation
Our results of operations for the three and nine months ended September 30, 2007 are not necessarily indicative of results expected for the full year.
Except per unit amounts, or as noted within the context of each footnote disclosure, the dollar amounts presented in the tabular data within these footnote disclosures are stated in thousands of dollars.
Essentially all of our assets, liabilities, revenues and expenses are recorded at EPO's level in our consolidated financial statements.  We act as guarantor of certain of EPO's debt obligations.  See Note 17 for condensed consolidated financial information of EPO.
In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments consisting of normal recurring accruals necessary for fair presentation.  Although we believe the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC").  These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2006 (Commission File No. 1-14323).
Note 2.  General Accounting Policies and Related Matters
Accounting for Employee Benefit Plans
Dixie Pipeline Company ("Dixie"), a consolidated subsidiary, employs the personnel that operate its pipeline system and certain of these employees are eligible to participate in Dixie's defined contribution plan and pension and postretirement benefit plans.  Due to the immaterial nature of Dixie's employee benefit plans to our consolidated financial position, results of operations and cash flows, our discussion is limited to the following:
Defined Contribution Plan.
Dixie contributed $0.1 million to its company-sponsored defined contribution plan during each of the three month periods ended September 30, 2007 and 2006.  During each of the nine month periods ended September 30, 2007 and 2006, Dixie contributed $0.2 million to its company-sponsored defined contribution plan.
Pension and Postretirement Benefit Plans.
Dixie's net pension benefit costs were $0.1 million and $0.2 million for the three months ended September 30, 2007 and 2006, respectively.  For the nine months ended September 30, 2007 and 2006, Dixie's net pension benefit costs were $0.4 million and $0.5 million, respectively.  Dixie's net postretirement benefit costs were $0.1 million for each of the three month periods ended September 30, 2007 and 2006.  For the nine months ended September 30, 2007 and 2006, Dixie's net postretirement benefit costs were $0.3 million and $0.2 million, respectively.  During the remainder of 2007, Dixie expects to contribute approximately $0.1 million to its postretirement benefit plan and approximately $1.2 million to its pension plan.
Consolidation Policy
We evaluate our financial interests in business enterprises to determine if they represent variable interest entities where we are the primary beneficiary.  If such criteria are met, we consolidate the financial statements of such businesses with those of our own.  Our consolidated financial statements include our accounts and those of our majority-owned subsidiaries in which we have a controlling interest, after the elimination of all material intercompany accounts and transactions.  We also consolidate other entities and ventures in which we possess a controlling financial interest as well as partnership interests where we are the sole general partner of the partnership.
8
If the entity is organized as a limited partnership or limited liability company and maintains separate ownership accounts, we account for our investment using the equity method if our ownership interest is between 3% and 50% and we exercise significant influence over the entity's operating and financial policies.  For all other types of investments, we apply the equity method of accounting if our ownership interest is between 20% and 50% and we exercise significant influence over the entity's operating and financial policies.  Our proportionate share of profits and losses from transactions with equity method unconsolidated affiliates are eliminated in consolidation to the extent such amounts are material and remain on our balance sheet (or those of our equity method investees) in inventory or similar accounts.
If our ownership interest in an entity does not provide us with either control or significant influence, we account for the investment using the cost method.
Cumulative Effect of Change in Accounting Principle
In January 2006, we adopted the provisions of Statement of Financial Accounting Standards ("SFAS") 123(R), "Share-Based Payment."  Upon adoption of this accounting standard, we recognized, as a benefit, a cumulative effect of change in accounting principle of $1.5 million.
Environmental Costs
Environmental costs for remediation are accrued based on estimates of known remediation requirements.  Such accruals are based on management's best estimate of the ultimate cost to remediate a site and are adjusted as further information and circumstances develop.  Those estimates may change substantially depending on information about the nature and extent of contamination, appropriate remediation technologies and regulatory approvals.   Ongoing environmental compliance costs are charged to expense as incurred.  In accruing for environmental remediation liabilities, costs of future expenditures for environmental remediation are not discounted to their present value, unless the amount and timing of the expenditures are fixed or reliably determinable.  Expenditures to mitigate or prevent future environmental contamination are capitalized.
At September 30, 2007 and December 31, 2006, our accrued liabilities for environmental remediation projects totaled $27.9 million and $24.2 million, respectively.  These amounts were derived from a range of reasonable estimates based upon studies and site surveys.  Unanticipated changes in circumstances and/or legal requirements could result in expenses being incurred in future periods in addition to an increase in actual cash required to remediate contamination for which we are responsible.
In February 2007, we entered into a settlement with a third party, which resulted in our receiving, in part, $6.5 million in cash from such third party.  We reserved such cash payment to fund anticipated future environmental remediation costs associated with certain assets that we had acquired from the third party.  Previously, the third party had been obligated to indemnify us for such costs.  As a result of the settlement, this indemnification was terminated.
Estimates
Preparing our Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Our actual results could differ from these estimates.  On an ongoing basis, management reviews its estimates based on currently available information.  Changes in facts and circumstances may result in revised estimates.
Income Taxes
We are organized as a pass-through entity for income tax purposes.  As a result, our partners are responsible for federal income taxes on their share of our taxable income. For the three and nine months ended September 30, 2007 and 2006, our provision for income taxes is applicable to state tax obligations
9
under the Revised Texas Franchise Tax and certain federal and state tax obligations of Seminole Pipeline Company ("Seminole") and Dixie.
In accordance with Financial Accounting Standards Board Interpretation ("FIN") 48, "Accounting for Uncertainty in Income Taxes," we must recognize the tax effects of any uncertain tax positions we may adopt, if the position taken by us is more likely than not sustainable.  If a tax position meets such criteria, the tax effect to be recognized by us would be the largest amount of benefit with more than a 50% chance of being realized upon settlement.  This guidance was effective January 1, 2007, and our adoption of this guidance had no material impact on our financial position, results of operations or cash flows.
Minority Interest
As presented in our Unaudited Condensed Consolidated Balance Sheets, minority interest represents third-party ownership interests in the net assets of our consolidated subsidiaries.  For financial reporting purposes, the assets and liabilities of our majority owned subsidiaries are consolidated with those of our own, with any third-party ownership in such amounts presented as minority interest.  Effective February 1, 2007, the public owners of Duncan Energy Partners' common units are presented as a minority interest in our consolidated financial statements.
Minority interest, as reflected on our September 30, 2007 balance sheet, includes $290.2 million attributable to third party owners of Duncan Energy Partners and the remainder to our other consolidated affiliates.
Minority interest expense for the three and nine months ended September 30, 2007 includes $3.2 million and $9.4 million, respectively, attributable to third party owners of Duncan Energy Partners.  The remaining minority interest expense amounts for these periods in 2007 and likewise those for 2006 are attributable to our other consolidated affiliates.
Contributions from minority interests for the nine months ended September 30, 2007 includes $290.5 million received from third parties in connection with the initial public offering of Duncan Energy Partners in February 2007.
Recent Accounting Developments
SFAS 157, "Fair Value Measurements" defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements.  SFAS 157 applies only to fair-value measurements that are already required or permitted by other accounting standards and is expected to increase the consistency of those measurements.  SFAS 157 emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Companies will be required to disclose the extent to which fair value is used to measure assets and liabilities, the inputs used to develop the measurements and the effect of certain of the measurements on earnings (or changes in net assets) for the period. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and we are
required to adopt SFAS 157 as of January 1, 2008.
SFAS 159, "The Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of FASB Statement No. 115" permits entities to choose to measure many financial assets and financial liabilities at fair value.  Unrealized gains and losses on items for which the fair value option has been elected would be reported in net income.  SFAS 159 also establishes presentation and disclosure requirements designed to draw comparisons between the different measurement attributes the company elects for similar types of assets and liabilities.  SFAS 159 is effective for fiscal years beginning after November 15, 2007.  We are currently evaluating this statement and have not yet determined the impact of such on our financial statements.
10
Note 3.  Accounting for Unit-Based Awards
We account for unit-based awards in accordance with SFAS 123(R).  SFAS 123(R) requires us to recognize compensation expense related to unit-based awards based on the fair value of the award at grant date.  The fair value of restricted unit awards is based on the market price of the underlying common units on the date of grant. The fair value of other unit-based awards is estimated using the Black-Scholes option pricing model.  Under SFAS 123(R), the fair value of an equity-classified award (such as a restricted unit award) is amortized to earnings on a straight-line basis over the requisite service or vesting period.  Compensation expense for liability-classified awards (such as unit appreciation rights ("UARs")) is recognized over the requisite service or vesting period of an award based on the fair value of the award remeasured at each reporting period.  Liability-type awards
are cash settled upon vesting.
The following table summarizes our compensation amounts by plan during each of the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
EPCO 1998 Long-Term Incentive Plan ("1998 Plan")
Unit options
$       139
$       193
$      4,248
$       508
Restricted units
1,981
1,032
5,639
3,761
Total 1998 Plan (1)
2,120
1,225
9,887
4,269
Employee Partnerships
1,364
517
2,542
1,646
DEP Holdings, LLC Unit Appreciation Rights
23
--
58
--
Total consolidated expense
$    3,507
$    1,742
$    12,487
$    5,915
(1)   Amounts presented for the nine months ended September 30, 2007 include $4.6 million associated with the resignation of our former chief executive officer.
1998 Plan
The 1998 Plan provides for the issuance of up to 7,000,000 of our common units.   After giving effect to outstanding option awards at September 30, 2007 and the issuance and forfeiture of restricted unit awards through September 30, 2007, a total of 1,271,456 additional common units could be issued under the 1998 Plan.
11
Unit options
.  Under the 1998 Plan, non-qualified incentive options to purchase a fixed number of our common units may be granted to key employees of EPCO who perform management, administrative or operational functions for us.  The following table presents option activity under the 1998 Plan for the periods indicated:
Weighted-
Weighted-
average
average
remaining
Aggregate
Number of
strike price
contractual
Intrinsic
Units
(dollars/unit)
term (in years)
Value
(1)
Outstanding at December 31, 2006
2,416,000
$    23.32
Granted (2)
895,000
$    30.63
Exercised
(241,000)
$    19.06
Settled (3)
(710,000)
$    24.35
Outstanding at September 30, 2007
2,360,000
$    26.22
7.98
$    2,861
Options exercisable at:
September 30, 2007
350,000
$    22.08
4.26
$    2,861
(1)    Aggregate intrinsic value reflects fully vested unit options at September 30, 2007.
(2)    The total grant date value of these awards was $2.4 million based on the following assumptions: (i) expected life of the option of seven years; (ii) weighted-average risk-free interest rate of 4.80%; (iii) weighted-average expected distribution yield on our common units of 8.40%; and (iv) weighted-average expected unit price volatility on our common units of 23.22%.
(3)
Reflects the settlement of options in connection with the resignation of our former chief executive officer.
The total intrinsic value of option awards exercised during the three and nine months ended September 30, 2007 was $0.1 million and $2.9 million, respectively.  At September 30, 2007, there was an estimated $3.1 million of total unrecognized compensation cost related to nonvested option awards granted under the 1998 Plan.  We expect to recognize this amount over a weighted-average period of 3.1 years.  We will recognize our share of these costs in accordance with the EPCO administrative services agreement.
During the nine months ended September 30, 2007 and 2006, we received cash of $7.7 million and $4.0 million, respectively, from the exercise of option awards granted under the 1998 Plan.  Conversely, our option-related reimbursements to EPCO were $2.9 million and $1.7 million, respectively.
Restricted units
.  Under the 1998 Plan, we may also issue restricted common units to key employees of EPCO and directors of our general partner.  The following table summarizes information regarding our restricted unit awards for the periods indicated:
Weighted-
Average Grant
Number of
Date Fair Value
Units
per Unit
(1)
Restricted units at December 31, 2006
1,105,237
Granted (2)
704,740
$    25.57
Vested
(500)
$    25.70
Forfeited
(22,700)
$    23.86
Settled (3)
(113,053)
$    23.24
Restricted units at September 30, 2007
1,673,724
(1)   Determined by dividing the aggregate grant date fair value of awards (including an allowance for forfeitures) by the number of awards issued.
(2)   Aggregate grant date fair value of restricted unit awards issued during 2007 was $18.0 million based on a grant date market price of our common units ranging from $28.00 to $30.96 per unit and estimated forfeiture rates ranging from 4.6% to 17.0%.
(3)   Reflects the settlement of restricted units in connection with the resignation of our former chief executive officer.
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The total fair value of restricted unit awards that vested during the three and nine months ended September 30, 2007 was nominal.  At September 30, 2007, there was an estimated $27.5 million of total unrecognized compensation cost related to restricted unit awards granted under the 1998 Plan, which we expect to recognize over a weighted-average period of 2.6 years.  We will recognize our share of such costs in accordance with the EPCO administrative services agreement.
Employee Partnerships
EPCO formed the Employee Partnerships to serve as an incentive arrangement for key employees of EPCO by providing them a "profits interest" in the Employee Partnerships.  Currently, there are three Employee Partnerships. EPE Unit I was formed in August 2005 in connection with Enterprise GP Holdings' initial public offering and EPE Unit II was formed in December 2005.  EPE Unit III was formed in May 2007.  For a detailed description of EPE Unit I and EPE Unit II, see our annual report on Form 10-K for the year ended December 31, 2006.
At September 30, 2007, there was an estimated $28.7 million of combined unrecognized compensation cost related to the Employee Partnerships.  We will recognize our share of these costs in accordance with the EPCO administrative services agreement over a weighted-average period of 4.2 years.
EPE Unit III.
EPE Unit III owns 4,421,326 units of Enterprise GP Holdings contributed to it by a private company affiliate of EPCO, which, in turn, was made the Class A limited partner of EPE Unit III.  The units of Enterprise GP Holdings contributed by the Class A limited partner had a fair value of $170.0 million on the date of contribution (the "Class A limited partner capital base").  Certain EPCO employees were issued Class B limited partner interests and admitted as Class B limited partners of EPE Unit III without any capital contribution.  The profits interest awards (i.e., Class B limited partner interests) in EPE Unit III entitle the holder to participate in the appreciation in value of Enterprise GP Holdings' units owned by EPE Unit III.
Unless otherwise agreed to by EPCO, the Class A limited partner and a majority in interest of the Class B limited partners of EPE Unit III, EPE Unit III will be liquidated upon the earlier of: (i) May 7, 2012 or (ii) a change in control of Enterprise GP Holdings or its general partner.  EPE Unit III has the following material terms regarding its quarterly cash distribution to partners:
§
Distributions of Cash flow
–
Each quarter, 100% of the cash distributions received by EPE Unit III from Enterprise GP Holdings will be distributed to the Class A limited partner until it has received an amount equal to the pro rata Class A preferred return (as defined below), and any remaining distributions received by EPE Unit III will be distributed to the Class B limited partners.  The Class A preferred return equals 3.797% per annum, of the Class A limited partner's capital base.  The Class A limited partner's capital base equals approximately $170.0 million plus any unpaid Class A preferred return from prior periods, less any distributions made by EPE Unit III of proceeds from the sale of Enterprise GP Holdings' units owned by EPE Unit III (as
described below).
§
Liquidating Distributions
–
Upon liquidation of EPE Unit III, Enterprise GP Holdings' units having a fair market value equal to the Class A limited partner capital base will be distributed to a private company affiliate of EPCO, plus any accrued Class A preferred return for the quarter in which liquidation occurs.  Any remaining units of Enterprise GP Holdings will be distributed to the Class B limited partners.
§
Sale Proceeds
–
If EPE Unit III sells any of the 4,421,326 units of Enterprise GP Holdings that it owns, the sale proceeds will be distributed to the Class A limited partner and the Class B limited partners in the same manner as liquidating distributions described above.
The Class B limited partner interests in EPE Unit III that are owned by EPCO employees are subject to forfeiture if the participating employee's employment with EPCO and its affiliates is terminated prior to May 7, 2012, with customary exceptions for death, disability and certain retirements.  The risk of
13
forfeiture associated with the Class B limited partner interests in EPE Unit III will also lapse upon certain change of control events.
DEP Holdings, LLC Unit Appreciation Rights
The non-employee directors of DEP Holdings, LLC, the general partner of Duncan Energy Partners ("DEPGP"), have been granted UARs in the form of letter agreements.  These liability awards are not part of any established long-term incentive plan of EPCO, Enterprise GP Holdings or us.  The compensation expense associated with these awards is recognized by DEPGP, which is our consolidated subsidiary.  The UARs entitle each non-employee director to receive a cash payment on the vesting date equal to the excess, if any, of the fair market value of Enterprise GP Holdings' units (determined as of a future vesting date) over the grant date fair value.  If a director resigns prior to vesting, his UAR awards are forfeited.  These UARs are accounted for similar to liability awards under SFAS 123(R) since they will be settled with cash.
As of September 30, 2007, a total of 90,000 UARs had been granted to non-employee directors of DEPGP that cliff vest in 2012.  If a director resigns prior to vesting, his UAR awards are forfeited.  The grant date fair value with respect to these UARs is based on an Enterprise GP Holdings' unit price of $36.68.
Note 4.  Financial Instruments
We are exposed to financial market risks, including changes in commodity prices and interest rates.  In addition, we are exposed to fluctuations in exchange rates between the U.S. dollar and Canadian dollar.  We may use financial instruments (i.e., futures, forwards, swaps, options and other financial instruments with similar characteristics) to mitigate the risks of certain identifiable and anticipated transactions.  In general, the types of risks we attempt to hedge are those related to (i) variability of future earnings, (ii) fair values of certain debt instruments and (iii) cash flows resulting from changes in applicable interest rates, commodity prices or exchange rates.  As a matter of policy, we do not use financial instruments for speculative (or "trading") purposes.
Interest Rate Risk Hedging Program
Our interest rate exposure results from variable and fixed interest rate borrowings under various debt agreements.  We manage a portion of our interest rate exposure by utilizing interest rate swaps and similar arrangements, which allow us to convert a portion of fixed rate debt into variable rate debt or a portion of variable rate debt into fixed rate debt.
Fair Value Hedges – Interest Rate Swaps
. As summarized in the following table, we had eleven interest rate swap agreements outstanding at September 30, 2007 that were accounted for as fair value hedges.
Number
Period Covered
Termination
Fixed to
Notional
Hedged Fixed Rate Debt
Of Swaps
by Swap
Date of Swap
Variable Rate
(1)
Amount
Senior Notes B, 7.50% fixed rate, due Feb. 2011
1
Jan. 2004 to Feb. 2011
Feb. 2011
7.50%  to 8.65%
$50 million
Senior Notes C, 6.375% fixed rate, due Feb. 2013
2
Jan. 2004 to Feb. 2013
Feb. 2013
6.38%  to 7.19%
$200 million
Senior Notes G, 5.6% fixed rate, due Oct. 2014
6
4th Qtr. 2004 to Oct. 2014
Oct. 2014
5.60%  to 6.30%
$600 million
Senior Notes K, 4.95% fixed rate, due June 2010
2
Aug. 2005 to June 2010
June 2010
4.95%  to 5.80%
$200 million
(1)  The variable rate indicated is the all-in variable rate for the current settlement period.
The total fair value of these eleven interest rate swaps at September 30, 2007 and December 31, 2006, was a liability of $19.7 million and $29.1 million, respectively, with an offsetting decrease in the fair value of the underlying debt.  Interest expense for the three months ended September 30, 2007 and 2006 includes a $2.3 million and $1.9 million loss from these swap agreements, respectively.  For the nine months ended September 30, 2007 and 2006, interest expense reflects a loss of $6.9 million and $2.8 million from these swap agreements, respectively.
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Cash Flow Hedges – Interest Rate Swaps
.  In September 2007, Duncan Energy Partners executed three floating-to-fixed interest rate swaps having a combined notional value of $175.0 million.  The purpose of these financial instruments, which are accounted for as cash flow hedges, is to reduce the sensitivity of Duncan Energy Partners' earnings to variable interest rates charged under its revolving credit facility.  The fair value of these swaps at September 30, 2007 and the benefit recognized from them in September 2007 was nominal.
Cash Flow Hedges – Treasury Locks
.
At times, we may use treasury lock financial instruments to hedge the underlying U.S. treasury rates related to our anticipated issuances of debt. Gains or losses on the termination of such instruments are amortized to earnings using the effective interest method over the estimated term of the underlying fixed-rate debt.  The following table summarizes changes in our treasury lock portfolio since December 31, 2006 (dollars in millions):
Notional
Cash
Amount
Gain (Loss)
Treasury lock portfolio, December 31, 2006 (1)
$    562.5
$        --
First quarter of 2007 additions to portfolio (1)
437.5
--
Second quarter of 2007 terminations (2)
(875.0)
42.3
Third quarter of 2007 additions to portfolio (3)
875.0
--
Third quarter of 2007 terminations (4)
(750.0)
6.6
Treasury lock portfolio, September 30, 2007 (5)
$    250.0
$    48.9
(1)    EPO entered into these transactions related to its anticipated issuances of debt in 2007.
(2)    Terminations relate to the issuance of the Junior Notes B ($500.0 million) and Senior Notes L ($375.0 million).  Of the $42.3 million gain, $10.6 million relates to the Junior Notes B and the remainder to the Senior Notes L and its successor debt.
(3)    EPO entered into these transactions related to its issuance of the Senior Notes L (including its successor debt) in August 2007 ($500.0 million) and anticipated issuance of debt during the first half of 2008 ($250.0 million)
(4)    Terminations relate to the issuance of the Senior Notes L and its successor debt.
(5)    The fair value of these financial instruments at September 30, 2007 was $2.9 million.
Since September 30, 2007, we have executed an additional $350.0 million in notional amount of treasury lock financial instruments.
Commodity Risk Hedging Program
The prices of natural gas, NGLs and certain petrochemical products are subject to fluctuations in response to changes in supply, market uncertainty and a variety of additional factors that are beyond our control.  In order to manage the price risks associated with such products, we may enter into commodity financial instruments.
The primary purpose of our commodity risk management activities is to hedge our exposure to price risks associated with (i) natural gas purchases, (ii) the value of NGL production and inventories, (iii) related firm commitments, (iv) fluctuations in transportation revenues where the underlying fees are based on natural gas index prices and (v) certain anticipated transactions involving either natural gas, NGLs or certain petrochemical products.  From time to time, we inject natural gas into storage and utilize hedging instruments to lock in the value of our inventory positions.  The commodity financial instruments we utilize may be settled in cash or with another financial instrument.
At September 30, 2007 and December 31, 2006, we had a limited number of commodity financial instruments in our portfolio, which primarily consisted of cash flow hedges.  The fair value of our commodity financial instrument portfolio at September 30, 2007 and December 31, 2006 was a liability of $23.4 million and $3.2 million, respectively.  During the three and nine months ended September 30, 2007, we recorded an expense of $10.5 million and $11.9 million, respectively, related to our commodity financial instruments.  During the three and nine months ended September 30, 2006, we recorded $7.8 million and $2.4 million, respectively, of expense related to our commodity financial instruments.
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Foreign Currency Hedging Program
We own an NGL marketing business located in Canada and have entered into a construction agreement where payments are indexed to the Canadian dollar.  As a result, we could be adversely affected by fluctuations in the foreign currency exchange rate between the U.S. dollar and the Canadian dollar.  We attempt to hedge this risk using foreign exchange purchase contracts to fix the exchange rate.  We use mark-to-market accounting for those foreign exchange contracts associated with our Canadian NGL marketing business.  The duration of these contracts is typically one month.  At September 30, 2007, $1.1 million of these exchange contracts were outstanding, all of which expired in October 2007.  The foreign exchange contracts associated with our construction activities are accounted for using hedge accounting.  At September 30, 2007, the fair value of these contracts was $2.9 million.  These contracts settle through
 May 2008.
Note 5.  Inventories
Our inventory amounts were as follows at the dates indicated:
September 30,
December 31,
2007
2006
Working inventory
(1)
$    496,030
$    387,973
Forward-sales inventory
(2)
13,858
35,871
Total inventory
$    509,888
$    423,844
(1)   Working inventory is comprised of inventories of natural gas, NGLs and certain petrochemical products that are either available-for-sale or used in the provision for services.
(2)   Forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts.
Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs.  We value our inventories at the lower of average cost or market.
Operating costs and expenses, as presented on our Unaudited Condensed Statements of Consolidated Operations, include cost of sales amounts related to the sale of inventories.  Our cost of sales was $3.5 billion and $3.2 billion for the three months ended September 30, 2007 and 2006, respectively.  For the nine months ended September 30, 2007 and 2006, our cost of sales was $9.9 billion and $9.0 billion, respectively.
Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market ("LCM") adjustments when the carrying value of our inventories exceed their net realizable value.  These non-cash charges are a component of cost of sales in the period they are recognized. For the three months ended September 30, 2007 and 2006, we recognized LCM adjustments of approximately $0.2 million and $5.7 million, respectively.  We recognized LCM adjustments of $13.3 million and $17.7 million for the nine months ended September 30, 2007 and 2006, respectively.
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Note 6.  Property, Plant and Equipment
Our property, plant and equipment values and accumulated depreciation balances were as follows at the dates indicated:
Estimated
Useful Life
September 30,
December 31,
in Years
2007
2006
Plants and pipelines
(1)
3-35
(5)
$    10,228,684
$    8,774,683
Underground and other storage facilities
(2)
5-35
(6)
708,827
596,649
Platforms and facilities
(3)
20-31
634,980
161,839
Transportation equipment
(4)
3-10
30,558
27,008
Land
45,353
40,010
Construction in progress
1,287,350
1,734,083
Total
12,935,752
11,334,272
Less accumulated depreciation
1,802,357
1,501,725
Property, plant and equipment, net
$    11,133,395
$    9,832,547
(1)   Plants and pipelines include processing plants; NGL, petrochemical, oil and natural gas pipelines; terminal loading and unloading facilities; office furniture and equipment; buildings; laboratory and shop equipment; and related assets.
(2)   Underground and other storage facilities include underground product storage caverns; storage tanks; water wells; and related assets.
(3)   Platforms and facilities include offshore platforms and related facilities and other associated assets.
(4)   Transportation equipment includes vehicles and similar assets used in our operations.
(5)   In general, the estimated useful lives of major components of this category are as follows:  processing plants, 20-35 years; pipelines, 18-35 years (with some equipment at 5 years); terminal facilities, 10-35 years; office furniture and equipment, 3-20 years; buildings 20-35 years; and laboratory and shop equipment, 5-35 years.
(6)   In general, the estimated useful lives of major components of this category are as follows:  underground storage facilities, 20-35 years (with some components at 5 years); storage tanks, 10-35 years; and water wells, 25-35 years (with some components at 5 years).
The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Depreciation expense
(1)
$    108,692
$    88,929
$    302,758
$    259,361
Capitalized interest
(2)
$      18,656
$    15,015
$      59,795
$      36,570
(1)   Depreciation expense is a component of operating costs and expenses as presented in our Unaudited Condensed Statements of Consolidated Operations.
(2)   Capitalized interest increases the carrying value of the associated asset and reduces interest expense during the period it is recorded.
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Asset retirement obligations
An ARO is a legal obligation associated with the retirement of a tangible long-lived asset that results from its acquisition, construction, development or normal operation, or a combination of these factors.  The following table summarizes amounts recognized in connection with AROs since December 31, 2006:
ARO liability balance, December 31, 2006
$    24,403
Liabilities incurred
1,673
Liabilities settled
(2,260)
Revisions in estimated cash flows
8,693
Accretion expense
3,397
ARO liability balance, September 30, 2007
(unaudited)
$    35,906
Property, plant and equipment at September 30, 2007 includes $11.6 million of asset retirement costs capitalized as an increase in the associated long-lived asset.  Also, as of September 30, 2007, we estimate that accretion expense will approximate $0.5 million for the last three months of 2007, $2.2 million for 2008, $2.0 million for 2009, $2.1 million for 2010 and $2.3 million for 2011.
Note 7.  Investments In and Advances to Unconsolidated Affiliates
We own interests in a number of related businesses that are accounted for using the equity method of accounting.  Our investments in and advances to unconsolidated affiliates are grouped according to the business segment to which they relate.  See Note 11 for a general discussion of our business segments. The following table presents our investments in and advances to unconsolidated affiliates at the dates indicated:
Ownership
Investments in and advances to
Percentage at
unconsolidated affiliates at
September 30,
September 30,
December 31,
2007
2007
2006
NGL Pipelines & Services:
Venice Energy Service Company L.L.C. ("VESCO")
13.1%
$      44,071
$      39,618
K/D/S Promix, L.L.C. ("Promix")
50%
51,186
46,140
Baton Rouge Fractionators LLC ("BRF")
32.3%
25,037
25,471
Onshore Natural Gas Pipelines & Services:
Jonah Gas Gathering Company ("Jonah")
19.4%
224,374
120,370
Evangeline (1)
49.5%
3,968
4,221
Offshore Pipelines & Services:
Poseidon Oil Pipeline Company, L.L.C. ("Poseidon")
36%
60,207
62,324
Cameron Highway Oil Pipeline Company ("Cameron Highway") (2)
50%
257,551
60,216
Deepwater Gateway, L.L.C. ("Deepwater Gateway")
50%
111,866
117,646
Neptune Pipeline Company, L.L.C. ("Neptune")
25.7%
55,906
58,789
Nemo Gathering Company, LLC ("Nemo") (3)
33.9%
2,610
11,161
Petrochemical Services:
Baton Rouge Propylene Concentrator, LLC ("BRPC")
30%
13,712
13,912
La Porte (4)
50%
4,337
4,691
Total
$    854,825
$    564,559
(1)   Refers to our ownership interests in Evangeline Gas Pipeline Company, L.P. and Evangeline Gas Corp., collectively.
(2)   During the second quarter of 2007, we contributed $216.5 million to Cameron Highway to fund our portion of the repayment of Cameron Highway's debt.  See "Cameron Highway" discussion within this Note 7.
(3)   During the nine months ended September 30, 2007, we recorded a $7.0 million non-cash impairment charge attributable to our investment in Nemo.  See "Nemo" discussion within this Note 7.
(4)   Refers to our ownership interests in La Porte Pipeline Company, L.P. and La Porte GP, LLC, collectively.
On occasion, the price we pay to acquire an ownership interest in a company exceeds the underlying book value of the capital accounts we acquire.  Such excess cost amounts are included within the carrying values of our investments in and advances to unconsolidated affiliates.  At September 30, 2007
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and December 31, 2006, our investments in Promix, La Porte, Neptune, Poseidon, Cameron Highway, Nemo and Jonah included excess cost amounts totaling $42.9 million and $38.7 million, respectively.  These amounts are attributable to the excess of the fair value of each entity's tangible assets over their respective book carrying values at the time we acquired an interest in each entity.  We amortize such excess cost amounts as a reduction in equity earnings. Amortization of such excess cost amounts was $0.5 million during each of the three month periods ended September 30, 2007 and 2006.  For the nine months ended September 30, 2007 and 2006, amortization of such amounts was $1.5 million and $1.6 million, respectively.
The following table presents our equity in income (loss) of unconsolidated affiliates by business segment for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
NGL Pipelines & Services
$      2,684
$    1,422
$      4,364
$      4,864
Onshore Natural Gas Pipelines & Services
2,351
794
4,592
2,300
Offshore Pipelines & Services (1) (2) (3)
8,557
(330)
3,786
6,373
Petrochemical Services
368
379
1,186
769
Total
$    13,960
$    2,265
$    13,928
$    14,306
(1)    Equity earnings from Nemo for the nine months ended September 30, 2007 include a $7.0 million non-cash impairment charge.  See "Nemo" discussion within this Note 7.
(2)    Equity earnings from Cameron Highway for the nine months ended September 30, 2007 were reduced by a charge of $8.8 million for costs associated with the early retirement of Cameron Highway's debt.
(3)    Equity earnings from Neptune for the three and nine months ended September 30, 2006 include a $7.4 million non-cash impairment charge.
Summarized Financial Information of Unconsolidated Affiliates
The following tables present unaudited income statement data for our current unconsolidated affiliates, aggregated by business segment, for the periods indicated (on a 100% basis).
Summarized Income Statement Information for the Three Months Ended
September 30, 2007
September 30, 2006
Operating
Net
Operating
Net
Revenues
Income
Income
Revenues
Income (Loss)
Income (Loss)
NGL Pipelines & Services (1)
$    49,579
$    15,435
$    16,118
$    63,086
$    (4,031)
$    (3,644)
Onshore Natural Gas Pipelines & Services
126,042
24,659
23,447
127,880
20,664
17,970
Offshore Pipelines & Services
39,331
21,363
19,974
41,245
21,311
14,138
Petrochemical Services
4,894
1,480
1,492
5,029
1,527
1,560
(1)    During the three  months ended September 30, 2006, VESCO earnings were reduced due to the lingering effects of Hurricane Katrina, including significant storm-related repair expenses.
Summarized Income Statement Information for the Nine Months Ended
September 30, 2007
September 30, 2006
Operating
Net
Operating
Net
Revenues
Income
Income
Revenues
Income (Loss)
Income (Loss)
NGL Pipelines & Services (1)
$    150,367
$    17,916
$    19,873
$    143,592
$    (28,394)
$    (27,107)
Onshore Natural Gas Pipelines & Services
360,072
71,472
67,862
354,304
77,826
70,208
Offshore Pipelines & Services
116,957
65,227
34,204
112,495
52,407
30,622
Petrochemical Services
15,416
4,770
4,832
14,454
3,358
3,435
(1)    During the nine months ended September 30, 2006, VESCO earnings were reduced due to the lingering effects of Hurricane Katrina, including significant storm-related repair expenses.
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Cameron Highway
.  We own a 50.0% interest in Cameron Highway, which owns a crude oil pipeline that gathers production from deepwater areas of the Gulf of Mexico, primarily the Southern Green Canyon area, for delivery to refineries and terminals in southeast Texas.  In May 2007, we made an approximate $191.0 million cash contribution to Cameron Highway.  This capital contribution, along with an equal amount contributed by our joint venture partner in Cameron Highway, was used by Cameron Highway to repay $365.0 million outstanding under its Senior Notes A and $14.1 million of related make-whole premiums and accrued interest.  In June 2007, we and our joint venture partner in Cameron Highway made an additional capital contribution of approximately $25.5 million each.  These capital contributions were used by Cameron Highway to repay its Series B notes on
June 7, 2007.  The amount of the repayment was $50.9 million, which included $0.9 million of related make-whole premiums and accrued interest.  As a result of these events, Cameron Highway no longer has any outstanding debt.
Nemo
.  Nemo was formed in 1999 to construct, own and operate the Nemo Gathering System, a 24-mile natural gas gathering system in the Gulf of Mexico offshore Louisiana.  The Nemo Gathering System, which began operations in 2001, gathers natural gas from certain developments in the Green Canyon area of the Gulf of Mexico to a pipeline interconnect with the Manta Ray Gathering System.  Due to a recent decrease in throughput volumes on the Nemo Gathering System, we evaluated our 33.9% investment in Nemo for impairment during the second quarter of 2007.  The decrease in throughput volumes is primarily due to underperformance of certain fields and natural depletion.
At December 31, 2006, the carrying value of our investment in Nemo was $11.2 million, which included $0.6 million of excess cost related to its original acquisition in 2001.  Our review of Nemo's estimated future cash flows during the second quarter of 2007 indicated that the carrying value of our investment exceeded its fair value, which resulted in a non-cash impairment charge of $7.0 million.  This loss is recorded as a component of "Equity in income of unconsolidated affiliates" in our Unaudited Condensed Statements of Consolidated Operations for the nine months ended September 30, 2007.  Equity earnings from our investment in Nemo are classified under our Offshore Pipelines & Services business segment.  After recording this impairment charge, the carrying value of our investment in Nemo at September 30, 2007 was $2.6 million, which reflects $0.6 million in losses
and $2.1 million of distributions we recorded during the first nine months of 2007.
Our investment in Nemo was written down to fair value, which management prepared using recognized business valuation techniques.  The fair value analysis is based upon management's expectation of future cash flows.  Such expectation of future cash flows incorporates industry information and assumptions made by management.  For example, the review of Nemo included management estimates regarding the remaining natural gas reserves of producers served by the Nemo Gathering System.  If the assumptions underlying our fair value analysis change and expected cash flows are reduced, additional impairment charges may result.
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Note 8.  Intangible Assets and Goodwill
Identifiable Intangible Assets
The following table summarizes our intangible assets at the dates indicated:
September 30, 2007
December 31, 2006
Gross
Accum.
Carrying
Gross
Accum.
Carrying
Value
Amort.
Value
Value
Amort.
Value
NGL Pipelines & Services (1)
$       520,025
$    (137,446)
$    382,579
$       528,594
$    (110,644)
$       417,950
Onshore Natural Gas Pipelines & Services
463,551
(101,556)
361,995
463,551
(77,402)
386,149
Offshore Pipelines & Services
207,012
(69,369)
137,643
207,012
(54,636)
152,376
Petrochemical Services
56,674
(10,690)
45,984
56,674
(9,194)
47,480
Total
$    1,247,262
$    (319,061)
$    928,201
$    1,255,831
$    (251,876)
$    1,003,955
(1)    During the second quarter of 2007, we adjusted our preliminary purchase price allocation related to the Piceance Creek Acquisition.  This adjustment resulted in the reclassification of $8.5 million from intangible assets to property, plant and equipment.
The following table presents the amortization expense of our intangible assets by segment for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
NGL Pipelines & Services
$      8,869
$      9,309
$    26,912
$    21,974
Onshore Natural Gas Pipelines & Services
7,946
8,375
24,154
25,181
Offshore Pipelines & Services
4,745
5,438
14,733
16,905
Petrochemical Services
499
499
1,495
1,495
Total
$    22,059
$    23,621
$    67,294
$    65,555
For the remainder of 2007, amortization expense associated with our intangible assets is currently estimated at $22.4 million.
Goodwill
The following table summarizes our goodwill amounts by segment at the dates indicated:
September 30,
December 31,
2007
2006
NGL Pipelines & Services
$    153,698
$    152,595
Onshore Natural Gas Pipelines & Services
282,121
282,121
Offshore Pipelines & Services
82,135
82,135
Petrochemical Services
73,690
73,690
Totals
$    591,644
$    590,541
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Note 9.  Debt Obligations
Our consolidated debt obligations consisted of the following at the dates indicated:
September 30,
December 31,
2007
2006
EPO senior debt obligations:
Multi-Year Revolving Credit Facility, variable rate, due October 2011
$       105,000
$       410,000
Pascagoula MBFC Loan, 8.70% fixed-rate, due March 2010
54,000
54,000
Senior Notes B, 7.50% fixed-rate, due February 2011
450,000
450,000
Senior Notes C, 6.375% fixed-rate, due February 2013
350,000
350,000
Senior Notes D, 6.875% fixed-rate, due March 2033
500,000
500,000
Senior Notes E, 4.00% fixed-rate, due October 2007 (1)
500,000
500,000
Senior Notes F, 4.625% fixed-rate, due October 2009
500,000
500,000
Senior Notes G, 5.60% fixed-rate, due October 2014
650,000
650,000
Senior Notes H, 6.65% fixed-rate, due October 2034
350,000
350,000
Senior Notes I, 5.00% fixed-rate, due March 2015
250,000
250,000
Senior Notes J, 5.75% fixed-rate, due March 2035
250,000
250,000
Senior Notes K, 4.950% fixed-rate, due June 2010
500,000
500,000
Senior Notes L, 6.30% fixed-rate, due September 2017
800,000
--
Petal GO Zone Bonds, variable rate, due August 2034
57,500
--
Duncan Energy Partners' debt obligation:
$300 Million Revolving Credit Facility, variable rate, due February 2011
215,000
--
Dixie Revolving Credit Facility, variable rate, due June 2010
10,000
10,000
Other, 8.75% fixed-rate, due June 2010 (2)
5,068
5,068
Total principal amount of senior debt obligations
5,546,568
4,779,068
EPO Junior Subordinated Notes A, due August 2066
550,000
550,000
EPO Junior Subordinated Notes B, due January 2068
700,000
--
Total principal amount of senior and junior debt obligations
6,796,568
5,329,068
Other, including unamortized discounts and premiums and changes in fair value (3)
(24,580)
(33,478)
Long-term debt
$    6,771,988
$    5,295,590
Standby letters of credit outstanding
$                 --
$         49,858
(1)    In accordance with SFAS 6, "Classification of Short-Term Obligations Expected to be Refinanced," long-term and current maturities of debt reflects the classification of such obligations at September 30, 2007 and December 31, 2006.  With respect to Senior Notes E, EPO repaid this note on October 15, 2007,  using cash and available credit capacity under its $1.25 billion Multi-Year Revolving Credit Facility to fund this repayment.
(2)    Represents remaining debt obligations assumed in connection with the GulfTerra Merger, which we expect to redeem in the fourth quarter of 2007.
(3)    The September 30, 2007 amount includes a liability of $19.7 million related to fair value hedges and a net $4.9 million in unamortized discounts.  The December 31, 2006 amount includes a liability of $29.1 million related to fair value hedges and a net $4.4 million in unamortized discounts.
Parent-Subsidiary guarantor relationships
We act as guarantor of the debt obligations of EPO with the exception of the Dixie revolving credit facility and the senior subordinated notes we assumed in connection with the GulfTerra Merger.  If EPO were to default on any debt we guarantee, we would be responsible for full repayment of that obligation.  We do not act as guarantor of the debt obligations of Duncan Energy Partners.
EPO's debt obligations
Apart from that discussed below, there have been no significant changes in the terms of EPO's debt obligations since those reported in our annual report on Form 10-K for the year ended December 31, 2006.
Junior Notes B
.  EPO sold $700 million in principal amount of fixed/floating, unsecured, long-term subordinated notes due January 2068 ("Junior Notes B") during the second quarter of 2007.  EPO used the proceeds from this subordinated debt to temporarily reduce borrowings outstanding under its Multi-Year Revolving Credit Facility and for general partnership purposes.  EPO's payment obligations
22
under Junior Notes B are subordinated to all of its current and future senior indebtedness (as defined in the Indenture Agreement).  We have guaranteed repayment of amounts due under Junior Notes B through an unsecured and subordinated guarantee.
The indenture agreement governing Junior Notes B allows EPO to defer interest payments on one or more occasions for up to ten consecutive years subject to certain conditions.  During any period in which interest payments are deferred and subject to certain exceptions, neither we nor EPO can declare or make any distributions to any of our respective equity securities or make any payments on indebtedness or other obligations that rank pari passu
with or are subordinate to Junior Notes B.  Junior Notes B rank pari passu with the Junior Subordinated Notes A, due August 2066 ("Junior Notes A"), which were issued during the third quarter of 2006.
The Junior Notes B will bear interest at a fixed annual rate of 7.034% through January 15, 2018, payable semi-annually in arrears in January and July of each year, commencing in January 2008.  After January 2018, the Junior Notes B will bear variable rate interest at the greater of (1) the sum of the 3-month London Interbank Offered Rate ("LIBOR") for the related interest period plus a spread of 268 basis points or (2) 7.034% per annum, payable quarterly in arrears in January, April, July and October of each year commencing in April 2018.  Interest payments may be deferred on a cumulative basis for up to ten consecutive years, subject to certain provisions.  The Junior Notes B mature in January 2068 and are not redeemable by EPO prior to January 2018 without payment of a make-whole premium.
In connection with the issuance of Junior Notes B, we and EPO entered into a Replacement Capital Covenant in favor of the covered debt holders (as named therein) pursuant to which we and EPO agreed for the benefit of such debt holders that neither we nor EPO would redeem or repurchase such junior notes on or before January 15, 2038, unless such redemption or repurchase is made from the proceeds of issuance of certain securities.
Senior Notes L
.
In September 2007, EPO sold $800.0 million in principal amount of ten-year senior unsecured notes (the "Senior Notes L") under its new universal shelf registration statement.  These notes were issued at 99.953% of their principal amount, have a fixed-rate interest of 6.30% and a maturity date of September 15, 2017.  The Senior Notes L will pay interest semi-annually in arrears on March 15 and September 15 of each year, beginning March 15, 2008.  EPO used the net proceeds from the issuance of these notes to temporarily reduce indebtedness outstanding under its Multi-Year Revolving Credit Facility and for general partnership purposes.  In October 2007, EPO used borrowing capacity under its Multi-Year Revolving Credit Facility to repay its $500.0 million Senior Notes E.
These fixed-rate notes are unsecured obligations of EPO and rank equally with its existing and future unsecured and unsubordinated indebtedness (as defined in the Indenture Agreement).  We have guaranteed repayment of amounts due under these notes through an unsecured and unsubordinated guarantee.  However, in the future, should any of EPO's subsidiaries become guarantors or co-obligors of its debt obligations maturing in one year or more, then these subsidiaries will jointly and severally, fully and unconditionally, guarantee the payment obligations under the notes. We may redeem the notes before their maturity in whole, at any time, or in part, from time to time, prior to maturity, at a redemption price that includes accrued and unpaid interest and a make-whole premium.  These notes were issued under an indenture containing certain covenants, which restrict our ability, with
certain exceptions, to incur debt secured by liens and engage in sale and leaseback transactions.
Petal MBFC Loan
.
In August 2007, Petal Gas Storage L.L.C. ("Petal"), a wholly owned subsidiary of EPO, entered into a loan agreement and a promissory note with the Mississippi Business Finance Corporation ("MBFC") under which Petal may borrow up to $29.5 million.  On the same date, the MBFC issued taxable bonds to EPO in the maximum amount of $29.5 million.  As of September 30, 2007, there was $8.9 million outstanding under the loan and the bonds.  EPO will make advances on the bonds to the MBFC and the MBFC will in turn make identical advances to Petal under the promissory note. The promissory note and the taxable bonds have identical terms including fixed interest rates of 5.90% and maturities of fifteen years.  The bonds and the associated tax incentives are authorized under
the Mississippi Business Finance Act.  Petal may prepay on the promissory note without penalty, and thus
23
cause the bonds to be redeemed, any time after one year from their date of issue.  The loan and bonds are netted in preparing our consolidated balance sheet, as well the related interest expense and income amounts are netted in preparing our consolidated income statement.
Petal GO Zone Bonds
.
In August 2007, Petal borrowed $57.5 million from the MBFC pursuant to a loan agreement and promissory note between Petal and the MBFC to pay a portion of the costs of certain natural gas storage facilities located in Petal, Mississippi.  The promissory note between Petal and MBFC is guaranteed by EPO and supported by a letter of credit issued under EPO's Multi-Year Revolving Credit Facility.  On the same date, the MBFC issued $57.5 million in Gulf Opportunity Zone Tax-Exempt ("GO Zone") bonds to various third parties.  A portion of the GO Zone bond proceeds are being held by a third party trustee and reflected as a component of other assets on our balance sheet.  The remaining proceeds held by the trustee will be released to us as we spend capital to complete the construction of
the natural gas storage facilities. At September 30, 2007, $39.3 million of the GO Zone bond proceeds remained held by the third party trustee.  The promissory note and the GO Zone bonds have identical terms including floating interest rates and maturities of twenty-seven years.  The bonds and the associated tax incentives are authorized under the Mississippi Business Finance Act and the Gulf Opportunity Zone Act of 2005.
Duncan Energy Partners' debt obligation
We consolidate the debt of Duncan Energy Partners with that of our own; however, we do not have the obligation to make interest payments or debt payments with respect to the debt of Duncan Energy Partners.
Duncan Energy Partners entered into a $300.0 million revolving credit facility, all of which may be used for letters of credit, with a $30.0 million sublimit for Swingline loans.  Letters of credit outstanding under this facility reduce the amount available for borrowings.  At the closing of its initial public offering, Duncan Energy Partners made its initial borrowing of $200.0 million under the facility to fund the $198.9 million cash distribution to EPO and the remainder to pay debt issuance costs.  At September 30, 2007, the principal balance outstanding under this facility was $215.0 million.
This credit facility matures in February 2011 and will be used by Duncan Energy Partners in the future to fund working capital and other capital requirements and for general partnership purposes.  Duncan Energy Partners may make up to two requests for one-year extensions of the maturity date (subject to certain restrictions).  The revolving credit facility is available to pay distributions upon the initial contribution of assets to Duncan Energy Partners, fund working capital, make acquisitions and provide payment for general purposes.  Duncan Energy Partners can increase the revolving credit facility, without consent of the lenders, by an amount not to exceed $150.0 million by adding to the facility one or more new lenders and/or increasing the commitments of existing lenders.  No existing lender is required to increase its commitment, unless it agrees to do so in its sole discretion.
This revolving credit facility offers the following unsecured loans, each having different interest requirements: (i) LIBOR loans bear interest at a rate per annum equal to LIBOR plus the applicable LIBOR margin (as defined in the credit agreement), (ii) Base Rate loans bear interest at a rate per annum equal to the higher of (a) the rate of interest publicly announced by the administrative agent, Wachovia Bank, National Association, as its Base Rate and (b) 0.5% per annum above the Federal Funds Rate in effect on such date and (iii)  Swingline loans bear interest at a rate per annum equal to LIBOR plus an applicable LIBOR margin.
The revolving credit facility requires Duncan Energy Partners to maintain a leverage ratio for the prior four fiscal quarters of not more than 4.75 to 1.00 at the last day of each fiscal quarter commencing June 30, 2007; provided that, upon the closing of a permitted acquisition, such ratio shall not exceed (a) 5.25 to 1.00 at the last day of the fiscal quarter in which such specified acquisition occurred and at the last day of each of the two fiscal quarters following the fiscal quarter in which such specified acquisition occurred, and (b) 4.75 to 1.00 at the last day of each fiscal quarter thereafter.  In addition, prior to obtaining an investment-grade rating by Standard & Poor's Ratings Services, Moody's Investors Service or Fitch Ratings, Duncan Energy Partners' interest coverage ratio, for the prior four fiscal quarters shall not be less
24
than 2.75 to 1.00 at the last day of each fiscal quarter commencing June 30, 2007.
The Duncan Energy Partners' credit facility contains other customary covenants.  Also, if an event of default exists under the credit agreement, the lenders will be able to accelerate the maturity date of amounts borrowed under the credit agreement and exercise other rights and remedies.
Canadian Debt Obligations
In May 2007, Canadian Enterprise Gas Products, Ltd. ("Canadian Enterprise"), a wholly-owned subsidiary of EPO, entered into a $30.0 million Canadian revolving credit facility with The Bank of Nova Scotia.  The credit facility, which includes the issuance of letters of credit, matures in October 2011.  Letters of credit outstanding under this facility reduce the amount available for borrowings.
Borrowings may be made in Canadian or U.S. dollars.  Canadian denominated borrowings may be comprised of Canadian Prime Rate ("CPR") loans or Bankers' Acceptances and U.S. denominated borrowings may be comprised of Alternative Base Rate ("ABR") or Eurodollar loans, each having different interest rate requirements.  CPR loans bear interest at a rate determined by reference to the Canadian Prime Rate.  ABR loans bear interest at a rate determined by reference to an alternative base rate as defined in the credit agreement.  Eurodollar loans bear interest at a rate determined by the LIBOR plus an applicable rate as defined in the credit agreement.  Bankers' Acceptances carry interest at the rate for Canadian bankers' acceptances plus an applicable rate as defined in the credit agreement.
The credit facility contains customary covenants and events of default.  The restrictive covenants limit Canadian Enterprise from materially changing the nature of its business or operations, dissolving, or completing mergers.  A continuing event of default would accelerate the maturity of amounts borrowed under the credit facility.  The obligations under the credit facility are guaranteed by EPO.  As of September 30, 2007, there were no debt obligations outstanding under this credit facility.
Covenants
We are in compliance with the covenants of our consolidated debt agreements at September 30, 2007 and December 31, 2006.
Information regarding variable interest rates paid
The following table presents the range of interest rates paid and weighted-average interest rate paid on our consolidated variable-rate debt obligations during the nine months ended September 30, 2007.
Range of
Weighted-average
interest rates
interest rate
paid
paid
EPO's Multi-Year Revolving Credit Facility
5.82% to 8.25%
5.87%
Duncan Energy Partners' Revolving Credit Facility
5.99% to 6.48%
6.21%
Dixie Revolving Credit Facility
5.66% to 5.67%
5.66%
Canadian Enterprise Revolving Credit Facility
4.95% to 5.82%
5.68%
Petal GO Zone Bonds
3.76% to 4.15%
3.89%
25
Consolidated debt maturity table
The following table presents the scheduled maturities of principal amounts of our debt obligations for the next five years and in total thereafter.
2007
$                 --
2008
--
2009
500,000
2010
569,068
2011
1,270,000
Thereafter
4,457,500
Total scheduled principal payments
$    6,796,568
In accordance with SFAS 6, long-term and current maturities of debt reflect the classification of such obligations at September 30, 2007 and December 31, 2006.  With respect to the $500.0 million in principal due under Senior Notes E in October 2007, EPO repaid this note on October 15, 2007 using cash and available credit capacity under its Multi-Year Revolving Credit Facility.  The preceding table and our Unaudited Condensed Consolidated Balance Sheets at September 30, 2007 and December 31, 2006 reflect this ability to refinance.
Debt Obligations of Unconsolidated Affiliates
We have two unconsolidated affiliates with long-term debt obligations.  The following table shows (i) our ownership interest in each entity at September 30, 2007, (ii) total debt of each unconsolidated affiliate at September 30, 2007 (on a 100% basis to the affiliate) and (iii) the corresponding scheduled maturities of such debt.
Our
Scheduled Maturities of  Debt
Ownership
After
Interest
Total
2007
2008
2009
2010
2011
2011
Poseidon
36.0%
$      91,000
$          --
$          --
$          --
$            --
$    91,000
$       --
Evangeline
49.5%
25,650
5,000
5,000
5,000
10,650
--
--
Total
$    116,650
$    5,000
$    5,000
$    5,000
$    10,650
$    91,000
$       --
Cameron Highway repaid its $365.0 million Series A notes and $50.0 million Series B notes in May and June 2007, respectively, using cash contributions from its partners.  We funded our 50% share of the capital contributions using borrowings under EPO's Multi-Year Revolving Credit Facility.   Cameron Highway incurred an $11.0 million make-whole premium in connection with the repayment of its Series A notes.
The credit agreements of our unconsolidated affiliates contain various affirmative and negative covenants, including financial covenants.  These businesses were in compliance with such covenants at September 30, 2007.  The credit agreements of our unconsolidated affiliates restrict their ability to pay cash dividends if a default or an event of default (as defined in each credit agreement) has occurred and is continuing at the time such dividend is scheduled to be paid.
Apart from the repayment of Cameron Highway's Series A and Series B notes, there have been no significant changes in the terms of the debt obligations of our unconsolidated affiliates since those reported in our annual report on Form 10-K for the year ended December 31, 2006.
Note 10.  Partners' Equity and Distributions
Our common units represent limited partner interests, which give the holders thereof the right to participate in distributions and to exercise the other rights or privileges available to them under our
Fifth Amended and Restated Agreement of Limited Partnership (together with all amendments thereto, the "Partnership Agreement").  We are managed by our general partner, Enterprise Products GP.
26
In accordance with the Partnership Agreement, capital accounts are maintained for our general partner and limited partners.  The capital account provisions of our Partnership Agreement incorporate principles established for U.S. Federal income tax purposes and are not comparable to the equity accounts reflected under GAAP in our consolidated financial statements.
Our Partnership Agreement sets forth the calculation to be used in determining the amount and priority of cash distributions that our limited partners and general partner will receive. The Partnership Agreement also contains provisions for the allocation of net earnings and losses to our limited partners and general partner.  For purposes of maintaining partner capital accounts, the Partnership Agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interests.  Normal income and loss allocations according to percentage interests are done only after giving effect to priority earnings allocations in an amount equal to incentive cash distributions allocated to our general partner.
Equity Offerings and Registration Statements
In general, the Partnership Agreement authorizes us to issue an unlimited number of additional limited partner interests and other equity securities for such consideration and on such terms and conditions as may be established by Enterprise Products GP in its sole discretion (subject, under certain circumstances, to the approval of our unitholders).
In April 2007, we filed a registration statement with the SEC authorizing the issuance of up to 25,000,000 common units in connection with our distribution reinvestment plan ("DRIP").  The DRIP provides unitholders of record and beneficial owners of our common units a voluntary means by which they can increase the number of common units they own by reinvesting the quarterly cash distributions they would otherwise receive into the purchase of additional common units.  A total of 1,518,291 of our common units were issued in February, May and August of 2007 in connection with the DRIP and the employee unit purchase plan ("EUPP").  The issuance of these units generated $45.3 million in net proceeds.
In August 2007, we filed a universal shelf registration statement with the SEC that allows us to issue an unlimited amount of debt and equity securities.
The following table reflects the number of common units issued and the net proceeds received from underwritten and other common unit offerings completed during the nine months ended September 30, 2007:
Net Proceeds from Sale of Common Units
Number of
Contributed
Contributed by
Total
common units
by Limited
General
Net
issued
Partners
Partner
Proceeds
February DRIP and EUPP
438,631
$    12,495
$       255
$    12,750
May DRIP and EUPP
494,169
15,181
622
15,803
August DRIP and EUPP
585,491
16,413
333
16,746
Total 2007
1,518,291
$    44,089
$    1,210
$    45,299
27
Summary of Changes in Outstanding Units
The following table summarizes changes in our outstanding units since December 31, 2006:
Restricted
Common
Common
Units
Units
Balance, December 31, 2006
431,303,193
1,105,237
Units issued in connection with DRIP and EUPP
1,518,291
--
Units issued in connection with equity-based awards
241,000
--
Restricted common units issued
--
704,740
Vesting of restricted units
500
(500)
Forfeiture or settlement of restricted units
--
(135,753)
Balance, September 30, 2007
433,062,984
1,673,724
Summary of Changes in Limited Partners' Equity
The following table details the changes in limited partners' equity since December 31, 2006:
Restricted
Common
Common
Units
Units
Total
Balance, December 31, 2006
$    6,320,577
$      9,340
$    6,329,917
Net income
286,086
898
286,984
Operating leases paid by EPCO
1,543
5
1,548
Cash distributions to partners
(615,442)
(1,818)
(617,260)
Net proceeds from sales of common units
44,089
--
44,089
Proceeds from exercise of unit options
7,451
--
7,451
Repurchase of restricted units and options
(512)
(1,056)
(1,568)
Unit option reimbursements to EPCO
(2,859)
--
(2,859)
Amortization of equity-based awards
3,095
6,167
9,262
Balance, September 30, 2007
$    6,044,028
$    13,536
$    6,057,564
Distributions to Partners
The percentage interest of Enterprise Products GP in our quarterly cash distributions is increased after certain specified target levels of quarterly distribution rates are met.  At current distribution rates, we are in the highest tier of such incentive targets.  Enterprise Products GP's quarterly incentive distribution thresholds are as follows:
§
2% of quarterly cash distributions up to $0.253 per unit;
§
15% of quarterly cash distributions from $0.253 per unit up to $0.3085 per unit; and
§
25% of quarterly cash distributions that exceed $0.3085 per unit.
We paid incentive distributions of $27.4 million and $22.4 million to Enterprise Products GP during the three months ended September 30, 2007 and 2006, respectively.  During the nine months ended September 30, 2007 and 2006, we paid incentive distributions of $79.0 million and $62.5 million, respectively, to Enterprise Products GP.
Our quarterly cash distributions for 2007 are presented in the following table:
Cash Distribution History
Distribution
Record
Payment
per Unit
Date
Date
1st Quarter 2007
$ 0.4750
Apr. 30, 2007
May 10, 2007
2nd Quarter 2007
$ 0.4825
Jul. 31, 2007
Aug. 9, 2007
3rd Quarter 2007
$ 0.4900
Oct. 31, 2007
Nov. 8, 2007
28
Note 11.  Business Segments
We have four reportable business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Offshore Pipelines & Services; and Petrochemical Services.  Our business segments are generally organized and managed according to the type of services rendered (or technologies employed) and products produced and/or sold.
We evaluate segment performance based on the non-GAAP financial measure of gross operating margin.  Gross operating margin (either in total or by individual segment) is an important performance measure of the core profitability of our operations.  This measure forms the basis of our internal financial reporting and is used by senior management in deciding how to allocate capital resources among business segments.  We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results.  The GAAP financial measure most directly comparable to total segment gross operating margin is operating income.  Our non-GAAP financial measure of total segment gross operating margin should not be considered an alternative to GAAP operating income.
We define total segment gross operating margin as consolidated operating income before: (i) depreciation, amortization and accretion expense; (ii) operating lease expenses for which we do not have the payment obligation; (iii) gains and losses on the sale of assets; and (iv) general and administrative costs.  Gross operating margin is exclusive of other income and expense transactions, provision for income taxes, minority interest, extraordinary charges and the cumulative effect of change in accounting principle.  Gross operating margin by segment is calculated by subtracting segment operating costs and expenses (net of the adjustments noted above) from segment revenues, with both segment totals before the elimination of intersegment and intrasegment transactions.
Segment revenues include intersegment and intrasegment transactions, which are generally based on transactions made at market-related rates.  Our consolidated revenues reflect the elimination of intercompany (both intersegment and intrasegment) transactions.
We include equity earnings from unconsolidated affiliates in our measurement of segment gross operating margin and operating income. Our equity investments with industry partners are a vital component of our business strategy.  They are a means by which we conduct our operations to align our interests with those of our customers and/or suppliers.  This method of operation enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed versus what we could accomplish on a stand-alone basis.  Many of these businesses perform supporting or complementary roles to our other business operations.
Our integrated midstream energy asset system (including the midstream energy assets of our equity method investees) provides services to producers and consumers of natural gas, NGLs, crude oil and certain petrochemicals.  In general, hydrocarbons enter our asset system in a number of ways, such as an offshore natural gas or crude oil pipeline, an offshore platform, a natural gas processing plant, an onshore natural gas gathering pipeline, an NGL fractionator, an NGL storage facility, or an NGL transportation or distribution pipeline.
Many of our equity investees are included within our integrated midstream asset system.  For example, we have ownership interests in several offshore natural gas and crude oil pipelines.  Other examples include our use of the Promix NGL fractionator to process mixed NGLs extracted by our gas plants.  The fractionated NGLs we receive from Promix can then be sold in our NGL marketing activities.  Given the integral nature of our equity method investees to our operations, we believe the presentation of earnings from such investees as a component of gross operating margin and operating income is meaningful and appropriate.
Historically, substantially all of our consolidated revenues were earned in the United States and derived from a wide customer base.  The majority of our plant-based operations are located in Texas, Louisiana, Mississippi, New Mexico and Wyoming.  Our natural gas, NGL and crude oil pipelines are located in a number of regions of the United States including (i) the Gulf of Mexico offshore Texas and
29
Louisiana; (ii) the south and southeastern United States (primarily in Texas, Louisiana, Mississippi and Alabama); and (iii) certain regions of the central and western United States, including the Rocky Mountains.  Our marketing activities are headquartered in Houston, Texas and serve customers in a number of regions of the United States including the Gulf Coast, West Coast and Mid-Continent areas.
Consolidated property, plant and equipment and investments in and advances to unconsolidated affiliates are assigned to each segment on the basis of each asset's or investment's principal operations.  The principal reconciling difference between consolidated property, plant and equipment and the total value of segment assets is construction-in-progress.  Segment assets represent the net book carrying value of facilities and other assets that contribute to gross operating margin of that particular segment.  Since assets under construction generally do not contribute to segment gross operating margin, such assets are excluded from segment asset totals until they are placed in service.  Consolidated intangible assets and goodwill are assigned to each segment based on the classification of the assets to which they relate.
We consolidate the financial statements of Duncan Energy Partners with those of our own.  As a result, our consolidated gross operating margin amounts include the gross operating margin amounts of Duncan Energy Partners on a 100% basis.
The following table presents our measurement of total segment gross operating margin for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Revenues
(1)
$    4,111,996
$    3,872,525
$    11,647,656
$    10,640,452
Less:
Operating costs and expenses
(1)
(3,896,411)
(3,584,783)
(10,981,562)
(9,955,231)
Add:
Equity in income of unconsolidated affiliates
(1)
13,960
2,265
13,928
14,306
Depreciation, amortization and accretion in
operating costs and expenses
(2)
133,869
112,412
374,522
325,180
Operating lease expense paid by EPCO
(2)
526
526
1,579
1,582
Loss (gain) on sale of assets in operating
costs and expenses
(2)
(219)
(3,204)
5,445
(3,401)
Total segment gross operating margin
$       363,721
$       399,741
$      1,061,568
$      1,022,888
(1)   These amounts are taken from our Unaudited Condensed Statements of Consolidated Operations.
(2)   These non-cash expenses are taken from the operating activities section of our Unaudited Condensed Statements of Consolidated Cash Flows.
A reconciliation of our total segment gross operating margin to operating income and income before provision for income taxes, minority interest and the cumulative effect of change in accounting principle follows:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Total segment gross operating margin
$    363,721
$    399,741
$    1,061,568
$    1,022,888
Adjustments to reconcile total segment gross operating margin
to operating income:
Depreciation, amortization and accretion in operating costs and expenses
(133,869)
(112,412)
(374,522)
(325,180)
Operating lease expense paid by EPCO
(526)
(526)
(1,579)
(1,582)
Gain (loss) on sale of assets in operating costs and expenses
219
3,204
(5,445)
3,401
General and administrative costs
(18,715)
(15,823)
(66,706)
(45,798)
Consolidated operating income
210,830
274,184
613,316
653,729
Other expense, net
(83,369)
(60,657)
(213,327)
(169,705)
Income before provision for income taxes, minority interest
and cumulative effect of change in accounting principle
$    127,461
$    213,527
$       399,989
$       484,024
30
Information by segment, together with reconciliations to our consolidated totals, is presented in the following table:
Reportable Segments
Onshore
NGL
Natural Gas
Offshore
Adjustments
Pipelines
Pipelines
Pipelines
Petrochemical
and
Consolidated
& Services
& Services
& Services
Services
Eliminations
Totals
Revenues from third parties:
Three months ended September 30, 2007
$    2,873,937
$    428,807
$    54,444
$    575,969
$              --
$    3,933,157
Three months ended September 30, 2006
2,797,651
341,537
53,936
547,038
--
3,740,162
Nine months ended September 30, 2007
8,261,659
1,304,239
142,557
1,559,887
--
11,268,342
Nine months ended September 30, 2006
7,689,559
1,062,948
105,794
1,446,279
--
10,304,580
Revenues (losses) from related parties:
Three months ended September 30, 2007
93,204
86,704
(1,069)
--
--
178,839
Three months ended September 30, 2006
48,699
83,521
143
--
--
132,363
Nine months ended September 30, 2007
169,262
209,807
236
9
--
379,314
Nine months ended September 30, 2006
92,748
242,390
734
--
--
335,872
Intersegment and intrasegment revenues:
Three months ended September 30, 2007
1,265,697
57,635
484
132,844
(1,456,660)
--
Three months ended September 30, 2006
1,105,719
30,377
484
101,452
(1,238,032)
--
Nine months ended September 30, 2007
3,540,347
119,121
1,531
360,885
(4,021,884)
--
Nine months ended September 30, 2006
3,079,511
90,106
1,187
287,718
(3,458,522)
--
Total revenues:
Three months ended September 30, 2007
4,232,838
573,146
53,859
708,813
(1,456,660)
4,111,996
Three months ended September 30, 2006
3,952,069
455,435
54,563
648,490
(1,238,032)
3,872,525
Nine months ended September 30, 2007
11,971,268
1,633,167
144,324
1,920,781
(4,021,884)
11,647,656
Nine months ended September 30, 2006
10,861,818
1,395,444
107,715
1,733,997
(3,458,522)
10,640,452
Equity in income (loss) of unconsolidated affiliates:
Three months ended September 30, 2007
2,684
2,351
8,557
368
--
13,960
Three months ended September 30, 2006
1,422
794
(330)
379
--
2,265
Nine months ended September 30, 2007
4,364
4,592
3,786
1,186
--
13,928
Nine months ended September 30, 2006
4,864
2,300
6,373
769
--
14,306
Gross operating margin by individual
business segment and in total:
Three months ended September 30, 2007
190,209
75,424
46,676
51,412
--
363,721
Three months ended September 30, 2006
232,037
77,489
38,364
51,851
--
399,741
Nine months ended September 30, 2007
589,708
235,102
97,429
139,329
--
1,061,568
Nine months ended September 30, 2006
549,401
260,943
76,131
136,413
--
1,022,888
Segment assets:
At September 30, 2007
4,037,990
3,683,821
1,450,786
673,448
1,287,350
11,133,395
At December 31, 2006
3,249,486
3,611,974
734,659
502,345
1,734,083
9,832,547
Investments in and advances
to unconsolidated affiliates (see Note 7):
At September 30, 2007
120,294
228,342
488,140
18,049
--
854,825
At December 31, 2006
111,229
124,591
310,136
18,603
--
564,559
Intangible Assets (see Note 8):
At September 30, 2007
382,579
361,995
137,643
45,984
--
928,201
At December 31, 2006
417,950
386,149
152,376
47,480
--
1,003,955
Goodwill (see Note 8):
At September 30, 2007
153,698
282,121
82,135
73,690
--
591,644
At December 31, 2006
152,595
282,121
82,135
73,690
--
590,541
31
The following table summarizes the contribution to consolidated revenues from the sale of NGL, natural gas and petrochemical products for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
NGL Pipelines & Services:
Sale of NGL products
$    2,837,465
$    2,640,568
$    7,952,147
$    7,276,342
Percent of consolidated revenues
69%
68%
68%
68%
Onshore Natural Gas Pipelines & Services:
Sale of natural gas
406,482
312,116
1,190,235
943,480
Percent of consolidated revenues
10%
8%
10%
9%
Petrochemical Services:
Sale of petrochemical products
444,670
417,395
1,268,731
1,157,184
Percent of consolidated revenues
11%
11%
11%
11%
Note 12.  Related Party Transactions
The following table summarizes our related party transactions for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Revenues from consolidated operations:
EPCO and affiliates
$      91,630
$      47,812
$    164,299
$      86,892
Unconsolidated affiliates
87,209
84,551
215,015
248,980
Total
$    178,839
$    132,363
$    379,314
$    335,872
Operating costs and expenses:
EPCO and affiliates
$      74,910
$      78,570
$    228,264
$    244,632
Unconsolidated affiliates
6,414
4,523
22,628
19,113
Total
$      81,324
$      83,093
$    250,892
$    263,745
General and administrative costs:
EPCO and affiliates
$      11,504
$      10,728
$      45,292
$      32,566
We believe that the terms and provisions of our related party agreements are fair to us; however, such agreements and transactions may not be as favorable to us as we could have obtained from unaffiliated third parties.
Relationship with EPCO and affiliates
We have an extensive and ongoing relationship with EPCO and its affiliates, which include the following significant entities that are not part of our consolidated group of companies:
§
EPCO and its private company subsidiaries;
§
Enterprise Products GP, our sole general partner;
§
Enterprise GP Holdings, which owns and controls our general partner;
§
TEPPCO and TEPPCO GP, which are controlled by Enterprise GP Holdings;
§
the Employee Partnerships (see Note 3); and
§
Energy Transfer Equity.
We also have an ongoing relationship with Duncan Energy Partners, the financial statements of which are consolidated with those of our own.  Our transactions with Duncan Energy Partners are eliminated in consolidation; therefore, they are not part of the totals presented in the preceding table.  A description of our relationship with Duncan Energy Partners is presented within this Note 12.
EPCO is a private company controlled by Dan L. Duncan, who is also a director and Chairman of Enterprise Products GP, our general partner.  At September 30, 2007, EPCO and its affiliates beneficially
32
owned 147,870,309 (or 34.0%) of our outstanding common units, which include 13,454,498 of our common units owned by Enterprise GP Holdings.  In addition, at September 30, 2007, EPCO and its affiliates beneficially owned 77.1% of the limited partner interests of Enterprise GP Holdings and 100% of its general partner, EPE Holdings.  Enterprise GP Holdings owns all of the membership interests of Enterprise Products GP.  The principal business activity of Enterprise Products GP is to act as our managing partner.  The executive officers and certain of the directors of Enterprise Products GP and EPE Holdings are employees of EPCO.
In connection with its general partner interest in us, Enterprise Products GP received cash distributions of $91.6 million and $73.5 million from us during the nine months ended September 30, 2007 and 2006, respectively.  These amounts include incentive distributions of $79.0 million and $62.5 million for the nine months ended September 30, 2007 and 2006, respectively.
We and Enterprise Products GP are both separate legal entities apart from each other and apart from EPCO, Enterprise GP Holdings and their respective other affiliates, with assets and liabilities that are separate from those of EPCO, Enterprise GP Holdings and their respective other affiliates.  EPCO and its private company subsidiaries depend on the cash distributions they receive from us, Enterprise GP Holdings and other investments to fund their other operations and to meet their debt obligations.  Enterprise GP Holdings, EPCO and its private company affiliates received $260.7 million and $225.5 million in cash distributions from us during the nine months ended September 30, 2007 and 2006, respectively.
The ownership interests in us that are owned or controlled by Enterprise GP Holdings are pledged as security under its credit facility.  In addition, substantially all of the ownership interests in us that are owned or controlled by EPCO and its affiliates, other than those interests owned by Enterprise GP Holdings, Dan Duncan LLC and certain trusts affiliated with Dan L. Duncan, are pledged as security under the credit facility of a private company affiliate of EPCO.  This credit facility contains customary and other events of default relating to EPCO and certain affiliates, including Enterprise GP Holdings, us and TEPPCO.
We have entered into an agreement with EPCO to provide trucking services to us for the transportation of NGLs and other products.  We also lease office space in various buildings from affiliates of EPCO.  The rental rates in these lease agreements approximate market rates.
Historically, we entered into transactions with a Canadian affiliate of EPCO for the purchase and sale of NGL products in the normal course of business.  These transactions were at market-related prices.  We acquired this affiliate in October 2006 and began consolidating its financial statements with those of our own from the date of acquisition.
EPCO Administrative Services Agreement
We have no employees.  All of our management, administrative and operating functions are performed by employees of EPCO pursuant to an administrative services agreement (the "ASA").  We and our general partner, Enterprise GP Holdings and its general partner, Duncan Energy Partners and its general partner, and TEPPCO and its general partner, among other affiliates, are parties to the ASA.  The ACG Committees of each general partner have approved the ASA.
Under the ASA, we reimburse EPCO for all costs and expenses it incurs in providing management, administrative and operating services to us.  The ASA also addresses potential conflicts in business opportunities that may arise among us, Enterprise GP Holdings, Duncan Energy Partners and other affiliates of EPCO.
Relationship with TEPPCO
We received $12.7 million and $14.0 million from TEPPCO during the three months ended September 30, 2007 and 2006, respectively, primarily from the sale of NGLs.  We received $42.8 million and $31.1 million from TEPPCO during the nine months ended September 30, 2007 and 2006, respectively,
33
primarily from the sale of NGLs.  We paid TEPPCO $4.5 million and $7.1 million for NGL pipeline transportation and storage services during the three months ended September 30, 2007 and 2006, respectively.  We paid TEPPCO $13.8 million and $17.7 million for NGL pipeline transportation and storage services during the nine months ended September 30, 2007 and 2006, respectively.
Purchase and lease of pipelines for DEP South Texas NGL Pipeline System from TEPPCO
.
In January 2007, we purchased a 10-mile segment of pipeline from TEPPCO located in the Houston area for $8.0 million that is part of the DEP South Texas NGL Pipeline System.  In addition, we entered into a lease with TEPPCO for an 11-mile interconnecting pipeline located in the Houston area.  The primary term of this lease expired in September 2007 and continues on a month-to-month basis subject to termination by either party upon 60 days notice.  This pipeline is being leased by a subsidiary of Duncan Energy Partners in connection with operations on its DEP South Texas NGL Pipeline System until construction of a parallel pipeline is completed in the first quarter of 2008.
Jonah Joint Venture with TEPPCO
.
In August 2006, we formed a joint venture with TEPPCO to be partners in TEPPCO's Jonah Gas Gathering Company, or Jonah.  Jonah owns the Jonah Gas Gathering System (the "Jonah Gathering System"), located in the Greater Green River Basin of southwestern Wyoming.  The Jonah Gathering System gathers and transports natural gas produced from the Jonah and Pinedale fields to regional natural gas processing plants and major interstate pipelines that deliver natural gas to end-user markets.
Prior to entering into the Jonah joint venture, we managed the construction of the Phase V expansion and funded the initial construction costs under a letter of intent we signed in February 2006.  In connection with the joint venture arrangement, we and TEPPCO will continue the Phase V expansion, which is expected to increase the capacity of the Jonah Gathering System from 1.5 Bcf/d to 2.3 Bcf/d.  The Phase V expansion is also expected to significantly reduce system operating pressures, which we anticipate will lead to increased production rates and ultimate reserve recoveries.  The first portion of the expansion, which is expected to increase the system gathering capacity to 2.0 Bcf/d, was completed in July 2007.  The second portion of the expansion is expected to be completed by the first quarter of 2008.  We will operate the Jonah Gathering System.
We manage the Phase V construction project.  TEPPCO is entitled to all distributions from the joint venture until specified milestones are achieved, at which point, we will be entitled to receive 50% of the incremental cash flow from portions of the system placed in service as part of the expansion.  After subsequent milestones are achieved, we and TEPPCO will share distributions based on a formula that takes into account the respective capital contributions of the parties, including expenditures by TEPPCO prior to the expansion.
Since August 1, 2006, we and TEPPCO equally share in the construction costs of the Phase V expansion.  TEPPCO has reimbursed us $208.8 million for its share of the Phase V costs.  At September 30, 2007, we had a receivable from TEPPCO of $13.0 million for additional Phase V costs incurred through September 30, 2007.
Upon completion of the expansion project and based on the formula in the joint venture partnership agreement, we expect to own an interest in Jonah of approximately 20%, with TEPPCO owning the remaining 80%.  Phase I of this expansion project was completed in July 2007, thus at September 30, 2007, we and TEPPCO owned and shared earnings of approximately 19.4% interest and 80.6% interest, respectively, in Jonah.
The joint venture is governed by a management committee comprised of two representatives approved by us and two representatives appointed by TEPPCO, each with equal voting power.  After an in-depth consideration of all relevant factors, this transaction was approved by the Audit, Conflicts and Governance Committee of our general partner and that of TEPPCO GP.
34
Relationship with Energy Transfer Equity
Enterprise GP Holdings acquired equity method investments in Energy Transfer Equity and its general partner in May 2007.  As a result, Energy Transfer Equity and its consolidated subsidiaries became related parties to our consolidated businesses.
For the three and five months ended September 30, 2007, we recorded $79.0 million and $121.5 million of revenues from Energy Transfer Partners, L.P. ("ETP"), primarily from NGL marketing activities.  We incurred $2.6 million and $8.4 million in operating costs and expenses for the three and five months ended September 30, 2007.  We have a long-term revenue generating contract with Titan Energy Partners, L.P. ("Titan"), a consolidated subsidiary of ETP.  Titan purchases substantially all of its propane requirements from us.  The contract continues until March 31, 2010 and contains renewal and extension options.  We and Energy Transfer Company ("ETC OLP") transport natural gas on each other's systems and share operating expenses on certain pipelines.  ETC OLP also sells natural gas to us.
Relationship with Duncan Energy Partners
For financial reporting purposes, we consolidate the financial statements of Duncan Energy Partners with those of our own and reflect its operations in our business segments.  All intercompany transactions between us and Duncan Energy Partners are eliminated in the preparation of our consolidated financial statements. Also, due to common control of the entities by Dan L. Duncan, the initial consolidated balance sheet of Duncan Energy Partners reflects our historical carrying basis in each of the subsidiaries contributed to Duncan Energy Partners. Public ownership of Duncan Energy Partners' net assets and earnings are presented as a component of minority interest in our consolidated financial statements.
The borrowings of Duncan Energy Partners are presented as part of our consolidated debt; however, we do not have any obligation for the payment of interest or repayment of borrowings incurred by Duncan Energy Partners.
On February 5, 2007, Duncan Energy Partners completed its initial public offering of 14,950,000 common units (including an overallotment amount of 1,950,000 common units) at $21.00 per unit, which generated net proceeds to Duncan Energy Partners of $291.9 million.  As consideration for assets contributed and reimbursement for capital expenditures related to these assets, Duncan Energy Partners distributed $260.6 million of these net proceeds to us along with $198.9 million in borrowings under its credit facility and a final amount of 5,351,571 common units of Duncan Energy Partners. Duncan Energy Partners used $38.5 million of net proceeds from the overallotment to redeem 1,950,000 of the 7,301,571 common units it had originally issued to Enterprise Products Partners, resulting in the final amount of 5,351,571 common units beneficially owned by Enterprise Products Partners.  We used the
cash received from Duncan Energy Partners to temporarily reduce amounts outstanding under EPO's Multi-Year Revolving Credit Facility.
We contributed 66% of our equity interests in the following subsidiaries to Duncan Energy Partners:
§
Mont Belvieu Caverns, LLC ("Mont Belvieu Caverns"), which owns salt dome storage caverns located in Mont Belvieu, Texas that receive, store and deliver NGLs and certain petrochemical products for industrial customers located along the upper Texas Gulf Coast, which has the largest concentration of petrochemical plants and refineries in the United States;
§
Acadian Gas, LLC ("Acadian Gas"), which owns an onshore natural gas pipeline system that gathers, transports, stores and markets natural gas in Louisiana.  The Acadian Gas system links natural gas supplies from onshore and offshore Gulf of Mexico developments (including offshore pipelines, continental shelf and deepwater production) with local gas distribution companies, electric generation plants and industrial customers, including those in the Baton Rouge-New Orleans-Mississippi River corridor.  A subsidiary of Acadian Gas owns our 49.5% equity interest in Evangeline;
35
§
Sabine Propylene Pipeline L.P. ("Sabine Propylene"), which transports polymer-grade propylene between Port Arthur, Texas and a pipeline interconnect located in Cameron Parish, Louisiana;
§
Enterprise Lou-Tex Propylene Pipeline L.P. ("Lou-Tex Propylene"), which transports chemical-grade propylene from Sorrento, Louisiana to Mont Belvieu, Texas; and
§
South Texas NGL Pipelines, LLC ("South Texas NGL"), which began transporting NGLs from Corpus Christi, Texas to Mont Belvieu, Texas in January 2007.  South Texas NGL owns the DEP South Texas NGL Pipeline System.
In addition to the 34% direct ownership interest we retained in such entities, we also own the 2% general partner interest in Duncan Energy Partners and 26.4% of Duncan Energy Partners' outstanding common units at September 30, 2007.  Accordingly, we have in effect retained a net economic interest of approximately 52.7% in Duncan Energy Partners as of September 30, 2007.  EPO directs the business operations of Duncan Energy Partners indirectly through its ownership and control of the general partner of Duncan Energy Partners.
We have significant involvement with all of the subsidiaries of Duncan Energy Partners, including the following types of transactions:
§
We utilize storage services provided by Mont Belvieu Caverns to support our Mont Belvieu fractionation and other businesses;
§
We buy natural gas from and sell natural gas to Acadian Gas in connection with its normal business activities; and
§
We are currently the sole shipper on the DEP South Texas NGL Pipeline System.
We may contribute or sell other equity interests in our subsidiaries to Duncan Energy Partners and use the proceeds we receive from Duncan Energy Partners to fund our capital spending program.  We have no obligation or commitment to make such contributions or sales to Duncan Energy Partners.
In September 2007, Enterprise Texas Pipeline LLC, a wholly owned subsidiary of EPO, purchased certain parcels of land and regulatory permits from Mont Belvieu Caverns for $3.2 million.  Due to common control considerations, the approximate $3.2 million excess of the proceeds received from EPO over the carrying value of assets sold was recorded as a general contribution by Mont Belvieu Caverns.
Relationships with Unconsolidated Affiliates
Our significant related party revenue and expense transactions with unconsolidated affiliates consist of the sale of natural gas to Evangeline and the purchase of NGL storage, transportation and fractionation services from Promix.  In addition, we sell natural gas to Promix and process natural gas at VESCO.   For additional information regarding our unconsolidated affiliates, see Note 7.
See "Relationship with TEPPCO" within this Note 12 for a description of ongoing transactions involving our Jonah joint venture with TEPPCO.
Note 13.  Earnings Per Unit
Basic earnings per unit is computed by dividing net income or loss allocated to limited partner interests by the weighted-average number of distribution-bearing units outstanding during a period.  Diluted earnings per unit is computed by dividing net income or loss allocated to limited partner interests by the sum of (i) the weighted-average number of distribution-bearing units outstanding during a period (as used in determining basic earnings per unit); (ii) the weighted-average number of performance-based
36
phantom units outstanding during a period; and (iii) the number of incremental common units resulting from the assumed exercise of dilutive unit options outstanding during a period (the "incremental option units").
In a period of net operating losses, restricted units, phantom units and incremental option units are excluded from the calculation of diluted earnings per unit due to their antidilutive effect.  The dilutive incremental option units are calculated using the treasury stock method, which assumes that proceeds from the exercise of all in-the-money options at the end of each period are used to repurchase common units at an average market value during the period.  The amount of common units remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities.
The amount of net income or loss allocated to limited partner interests is net of our general partner's share of such earnings.  The following table presents the allocation of net income to Enterprise Products GP for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Net income
$    117,606
$    208,302
$    371,805
$    468,374
Less incentive earnings allocations to Enterprise Products GP
(27,394)
(22,386)
(78,964)
(62,497)
Net income available after incentive earnings allocation
90,212
185,916
292,841
405,877
Multiplied by Enterprise Products GP ownership interest
2.0%
2.0%
2.0%
2.0%
Standard earnings allocation to Enterprise Products GP
$        1,804
$        3,718
$        5,857
$        8,118
Incentive earnings allocation to Enterprise Products GP
$      27,394
$      22,386
$      78,964
$      62,497
Standard earnings allocation to Enterprise Products GP
1,804
3,718
5,857
8,118
Enterprise Products GP interest in net income
$      29,198
$      26,104
$      84,821
$      70,615
37
The following table presents our calculation of basic and diluted earnings per unit for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Income before change in accounting principle
and Enterprise Products GP interest
$    117,606
$    208,302
$    371,805
$    466,899
Cumulative effect of change in accounting principle
--
--
--
1,475
Net income
117,606
208,302
371,805
468,374
Enterprise Products GP interest in net income
(29,198)
(26,104)
(84,821)
(70,615)
Net income available to limited partners
$      88,408
$    182,198
$    286,984
$    397,759
BASIC EARNINGS PER UNIT
Numerator
Income before change in accounting principle
and Enterprise Products GP interest
$    117,606
$    208,302
$    371,805
$    466,899
Cumulative effect of change in accounting principle
--
--
--
1,475
Enterprise Products GP interest in net income
(29,198)
(26,104)
(84,821)
(70,615)
Limited partners' interest in net income
$      88,408
$    182,198
$    286,984
$    397,759
Denominator
Common units
432,805
418,790
432,221
407,539
Time-vested restricted units
1,645
1,064
1,364
930
Total
434,450
419,854
433,585
408,469
Basic earnings per unit
Income before change in accounting principle
and Enterprise Products GP interest
$          0.27
$          0.50
$          0.86
$          1.14
Cumulative effect of change in accounting principle
--
--
--
0.00
Enterprise Products GP interest in net income
(0.07)
(0.07)
(0.20)
(0.17)
Limited partners' interest in net income
$          0.20
$          0.43
$          0.66
$          0.97
DILUTED EARNINGS PER UNIT
Numerator
Income before change in accounting principle
and Enterprise Products GP interest
$    117,606
$    208,302
$    371,805
$    466,899
Cumulative effect of change in accounting principle
--
--
--
1,475
Enterprise Products GP interest in net income
(29,198)
(26,104)
(84,821)
(70,615)
Limited partners' interest in net income
$      88,408
$    182,198
$    286,984
$    397,759
Denominator
Common units
432,805
418,790
432,221
407,539
Time-vested restricted units
1,645
1,064
1,364
930
Performance-based restricted units
9
16
9
23
Incremental option units
354
332
480
271
Total
434,813
420,202
434,074
408,763
Diluted earnings per unit
Income before change in accounting principle
and Enterprise Products GP interest
$          0.27
$          0.50
$          0.86
$          1.14
Cumulative effect of change in accounting principle
--
--
--
0.00
Enterprise Products GP interest in net income
(0.07)
(0.07)
(0.20)
(0.17)
Limited partners' interest in net income
$          0.20
$          0.43
$          0.66
$          0.97
Note 14.  Commitments and Contingencies
Litigation
On occasion, we or our unconsolidated affiliates are named as defendants in litigation relating to our normal business activities, including regulatory and environmental matters.  Although we are insured against various business risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify us against liabilities arising from future legal proceedings as a result of our ordinary business activities.  We are unaware of any significant
38
litigation, pending or threatened, that could have a significant adverse effect on our financial position, cash flows or results of operations.
On September 18, 2006, Peter Brinckerhoff, a purported unitholder of TEPPCO, filed a complaint in the Court of Chancery of New Castle County in the State of Delaware, in his individual capacity, as a putative class action on behalf of other unitholders of TEPPCO, and derivatively on behalf of TEPPCO, concerning, among other things, certain transactions involving TEPPCO and us or our affiliates.  Mr. Brinkerhoff filed an amended complaint on July 12, 2007. The amended complaint names as defendants (i) TEPPCO, its current and certain former directors, and certain of its affiliates; (ii) us and certain of our affiliates; (iii) EPCO, Inc.; and (iv) Dan L. Duncan.
The amended complaint alleges, among other things, that the defendants have caused TEPPCO to enter into certain transactions with us or our affiliates that were unfair to TEPPCO or otherwise unfairly favored us or our affiliates over TEPPCO.  These transactions are alleged to include the joint venture to further expand the Jonah Gathering System entered into by TEPPCO and one of our affiliates in August 2006 and the sale by TEPPCO to one of our affiliates of the Pioneer gas processing plant in March 2006. The amended complaint seeks (i) rescission of these transactions or an award of rescissory damages with respect thereto; (ii) damages for profits and special benefits allegedly obtained by defendants as a result of the alleged wrongdoings in the amended complaint; and (iii) awarding plaintiff costs of the action, including fees and expenses of his attorneys and experts.  We believe
this lawsuit is without merit and intend to vigorously defend against it.  See Note 12 for additional information regarding our relationship with TEPPCO.
On February 13, 2007, EPO received notice from the U.S. Department of Justice ("DOJ") that it was the subject of a criminal investigation related to an ammonia release in Kingman County, Kansas on October 27, 2004 from a pressurized anhydrous ammonia pipeline owned by a third party, Magellan Ammonia Pipeline, L.P. ("Magellan").  EPO is the operator of this pipeline.  On February 14, 2007, EPO received a letter from the Environment and Natural Resources Division ("ENRD") of the DOJ regarding this incident and a previous release of ammonia on September 27, 2004 from the same pipeline.  The ENRD has indicated that it may pursue civil damages against EPO and Magellan as a result of these incidents.  Based on this correspondence from the ENRD, the statutory maximum amount of civil fines that could be assessed against EPO and Magellan is up to $17.4
million in the aggregate. EPO is cooperating with the DOJ and is hopeful that an expeditious resolution of this civil matter acceptable to all parties will be reached in the near future.  Magellan has agreed to indemnify EPO for the civil matter.  On September 4, 2007, we and the DOJ entered into a plea agreement whereby a wholly-owned subsidiary of EPO, Mapletree, LLC, pleaded guilty to a misdemeanor charge of negligence in connection with the releases and paid a fine of $1.0 million. The plea agreement concludes the DOJ's criminal investigation into the ammonia releases.  At this time, we do not believe that a final resolution of the civil claims by the ENRD will have a material impact on our consolidated financial position, cash flows or results of operations.
On October 25, 2006, a rupture in the Magellan Ammonia Pipeline resulted in the release of ammonia near Clay Center, Kansas. The pipeline has been repaired and environmental remediation tasks related to this incident have been completed.  At this time, we do not believe that this incident will have a material impact on our consolidated financial position, cash flows or results of operations.
Several lawsuits have been filed by municipalities and other water suppliers against a number of manufacturers of reformulated gasoline containing methyl tertiary butyl ether.  In general, such suits have not named manufacturers of this product as defendants, and there have been no such lawsuits filed against our subsidiary that owns an octane-additive production facility.  It is possible, however, that former manufacturers such as our subsidiary could ultimately be added as defendants in such lawsuits or in new lawsuits.
Operating Leases
We lease certain property, plant and equipment under noncancelable and cancelable operating leases.  Our significant lease agreements involve (i) the lease of underground caverns for the storage of
39
natural gas and NGLs, (ii) leased office space with an affiliate of EPCO, and (iii) land held pursuant to right-of-way agreements.  In general, our material lease agreements have original terms that range from 14 to 20 years and include renewal options that could extend the agreements for up to an additional 20 years.  Lease expense is charged to operating costs and expenses on a straight line basis over the period of expected economic benefit.  Contingent rental payments are expensed as incurred.
There have been no material changes in our operating lease commitments since December 31, 2006, except for the commitments associated with a new natural gas storage lease.  In order to provide firm natural gas transportation and storage services under long-term agreements with CenterPoint Energy Resources Corp. ("CenterPoint Energy") in Houston, Texas, we entered into a 2-year agreement during the second quarter of 2007 for firm natural gas storage capacity in Texas.  Our rental payments under the lease are at a fixed rate.  Contingent rental payments are based upon the actual volume of natural gas we inject or withdraw from the storage cavern over the term of the lease agreement.  The incremental future minimum lease payments associated with our new natural gas storage lease are $3.7 million in 2007, $4.9 million in 2008 and $1.2 million in 2009.  CenterPoint Energy will
reimburse us for the costs we incur associated with this natural gas storage lease.
Lease and rental expense included in operating costs and expenses was $9.1 million and $10.3 million during the three months ended September 30, 2007 and 2006, respectively.  For the nine months ended September 30, 2007 and 2006, lease and rental expense included in operating costs and expenses was $28.9 million and $30.0 million, respectively.
Contractual Obligations
With the exception of the debt incurred by Duncan Energy Partners in connection with its initial public offering and the issuance of Junior Notes B and Senior Notes L by EPO, there have been no significant changes in our consolidated scheduled maturities of long-term debt since those reported in our annual report on Form 10-K for the year ended December 31, 2006.  See Note 9 for additional information regarding the debt obligations of Duncan Energy Partners and the issuance of Junior Notes B and Senior Notes L.
Performance Guaranty
In December 2004, a subsidiary of ours entered into the Independence Hub Agreement with six oil and natural gas producers.  We guaranteed to the producers the construction-related performance of our subsidiary up to an amount of $340.8 million. The performance guaranty expired during the second quarter of 2007.
Other Claims
As part of our normal business activities with joint venture partners and certain customers and suppliers, we occasionally make claims against such parties or have claims made against us as a result of disputes related to contractual agreements or similar arrangements.  As of September 30, 2007, our contingent asserted claims against such parties were approximately $2.2 million and asserted claims against us for various periods were approximately $35.5 million.  These matters are in various stages of assessment and the ultimate outcome of such disputes cannot be reasonably estimated.  Such asserted claim amounts may increase or decrease depending on the ultimate resolution of these matters.  However, in our opinion, the likelihood of a material adverse outcome related to disputes against us is remote.  Accordingly, accruals for loss contingencies related to these matters, if any, that
might result from the resolution of such disputes have not been reflected in our consolidated financial statements.
Note 15.
Significant Risks and Uncertainties – Weather-Related Risks
The following is a discussion of the general status of our insurance claims related to recent significant storm events.  To the extent we include any estimate or range of estimates regarding the dollar
40
value of damages, please be aware that a change in our estimates may occur as additional information becomes available.  To the extent we receive nonrefundable cash proceeds from business interruption insurance claims, they are recorded as revenue in our Unaudited Condensed Statements of Consolidated Operations in the period of receipt.
Hurricane Ivan insurance claims
.
We have submitted business interruption insurance claims for our estimated losses caused by Hurricane Ivan, which struck the eastern U.S. Gulf Coast region in September 2004.  We are continuing our efforts to collect residual balances and expect to complete the process during 2007.
Hurricanes Katrina and Rita insurance claims
.
Hurricanes Katrina and Rita, both significant storms, affected certain of our Gulf Coast assets in August and September of 2005, respectively.  We continue to pursue collection of our property damage and business interruption claims related to Hurricanes Katrina and Rita.
The following table summarizes the proceeds we received for the three and nine months ended September 30, 2007 and 2006 from business interruption and property damage insurance claims with respect to certain named storms:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Business interruption proceeds:
Hurricane Ivan
$          --
$      5,157
$         377
$    17,383
Hurricane Katrina
1,301
24,325
14,500
24,325
Hurricane Rita
743
20,740
9,000
20,740
Other
--
--
996
--
Total proceeds
2,044
50,222
24,873
62,448
Property damage proceeds:
Hurricane Ivan
--
--
1,273
24,104
Hurricane Katrina
--
6,975
6,563
6,975
Hurricane Rita
--
2,730
--
2,730
Other
--
--
184
--
Total proceeds
--
9,705
8,020
33,809
Total
$    2,044
$    59,927
$    32,893
$    96,257
Note 16.  Supplemental Cash Flow Information
Our Unaudited Condensed Statements of Consolidated Cash Flows are prepared using the indirect method.  The indirect method derives net cash flows from operating activities by adjusting net income to remove (i) the effects of all deferrals of past operating cash receipts and payments, such as changes during the period in inventory, deferred income and similar transactions, (ii) the effects of all accruals of expected future operating cash receipts and cash payments, such as changes during the period in receivables and payables, (iii) the effects of all items classified as investing or financing cash flows, such as gains or losses on sale of property, plant and equipment or extinguishment of debt, and (iv) other non-cash amounts such as depreciation, amortization and changes in the fair market value of financial instruments.
41
The net effect of changes in operating assets and liabilities is as follows for the periods indicated:
For the Nine Months
Ended September 30,
2007
2006
Decrease (increase) in:
Accounts and notes receivable
$    (281,949)
$      72,878
Inventories
(170,610)
(122,672)
Prepaid and other current assets
(41,171)
(42,597)
Other assets
4,719
(3,229)
Increase (decrease) in:
Accounts payable
61,106
21,799
Accrued product payables
354,508
63,667
Accrued expenses
152,534
63,500
Accrued interest
10,020
9,334
Other current liabilities
26,110
100,858
Other long-term liabilities
(4,995)
(3,689)
Net effect of changes in operating accounts
$      110,272
$    159,849
Contributions in aid of construction costs
Third parties may be obligated to reimburse us for all or a portion of expenditures on certain of our capital projects.  The majority of such arrangements are associated with projects related to pipeline construction and production well tie-ins.  We received $52.5 million and $63.7 million as contributions in aid of our construction costs during the nine months ended September 30, 2007 and 2006, respectively.
Cash used for business combinations – Encinal Acquisition in July 2006
In July 2006, we acquired the Encinal and Canales natural gas gathering systems and related gathering and processing contracts that comprised the South Texas natural gas transportation and processing business of an affiliate of Lewis Energy Group, L.P. ("Lewis").  The aggregate value of total consideration we paid or issued to complete this business combination (referred to as the "Encinal acquisition") was $326.3 million, which consisted of $145.2 million in cash and 7,115,844 of our common units.
The Encinal and Canales gathering systems are located in South Texas and are connected to over 1,450 natural gas wells producing from the Olmos and Wilcox formations.  The Encinal system consists of 452 miles of pipeline, which consists of 280 miles of pipeline we acquired from Lewis in this transaction and 172 miles of pipeline that we own and had previously leased to Lewis.  The Canales gathering system is comprised of 32 miles of pipeline.  Currently, natural gas volumes gathered by the Encinal and Canales systems are transported by our existing Texas Intrastate System and are processed by our South Texas natural gas processing plants.
Note 17.  Condensed Financial Information of EPO
EPO conducts substantially all of our business.  Currently, we have no independent operations and no material assets outside those of EPO.  EPO consolidates the financial statements of Duncan Energy Partners with those of its own.
We guarantee the consolidated debt obligations of EPO with the exception of the Dixie revolving credit facility, Duncan Energy Partners' credit facility and the senior subordinated notes assumed in connection with the GulfTerra Merger.  If EPO were to default on any debt we guarantee, we would be responsible for full repayment of that obligation.  See Note 9 for additional information regarding our consolidated debt obligations.
42
The reconciling items between our consolidated financial statements and those of EPO are insignificant.  The following table presents condensed consolidated balance sheet data for EPO at the dates indicated:
September 30,
December 31,
2007
2006
ASSETS
Current assets
$      2,418,232
$      1,915,937
Property, plant and equipment, net
11,133,395
9,832,547
Investments in and advances to unconsolidated affiliates, net
854,825
564,559
Intangible assets, net
928,201
1,003,955
Goodwill
591,644
590,541
Deferred tax asset
2,073
1,632
Other assets
80,358
74,103
Total
$    16,008,728
$    13,983,274
LIABILITIES AND PARTNERS' EQUITY
Current liabilities
$      2,479,205
$      1,986,444
Long-term debt
6,771,988
5,295,590
Other long-term liabilities
102,354
99,845
Minority interest
437,519
136,249
Partners' equity
6,217,662
6,465,146
Total
$    16,008,728
$    13,983,274
Total EPO debt obligations guaranteed by us
$      6,566,500
$      5,314,000
The following table presents condensed consolidated statements of operations data for EPO for the periods indicated:
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Revenues
$    4,111,996
$    3,872,525
$    11,647,656
$    10,640,452
Costs and expenses
3,917,172
3,599,990
11,046,151
9,997,962
Equity in income of  unconsolidated affiliates
13,960
2,265
13,928
14,306
Operating income
208,784
274,800
615,433
656,796
Other expense
(84,001)
(61,209)
(215,088)
(171,134)
Income before provision for income taxes, minority
interest and change in accounting principle
124,783
213,591
400,345
485,662
Provision for income taxes
(2,072)
(3,214)
(9,006)
(12,378)
Income before minority interest and change in
accounting principle
122,711
210,377
391,339
473,284
Minority interest
(7,804)
(2,028)
(19,325)
(4,761)
Income before change in  accounting principle
114,907
208,349
372,014
468,523
Cumulative effect of change in  accounting principle
--
--
--
1,475
Net income
$       114,907
$       208,349
$         372,014
$         469,998
Note 18.  Subsequent Event
On November 1, 2007, Dixie experienced a rupture on its mainline near Carmichael, Mississippi.  The incident resulted in two fatalities and an undetermined number of injuries.  The cause of the incident is unknown; however, an investigation is underway by the Company and all appropriate governmental agencies.  The affected portion of the pipeline will not return to service until we and all appropriate governmental authorities have determined that it is safe to do so.  We currently expect operations to resume in the fourth quarter of 2007.
43
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
.
For the three and nine months ended September 30, 2007 and 2006.
The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and our accompanying notes included under Item 1 of this quarterly report on Form 10-Q and with the information contained within our annual report on Form 10-K for the year ended December 31, 2006.  Our discussion and analysis includes the following:
§
Cautionary Note Regarding Forward-Looking Statements.
§
Overview of Critical Accounting Policies and Estimates.
§
Overview of Business.
§
Recent Developments – Discusses significant developments since December 31, 2006.
§
Results of Operations – Discusses material period-to-period variances in our Unaudited Condensed Statements of Consolidated Operations.
§
Liquidity and Capital Resources – Addresses available sources of liquidity and analyzes cash flows, including capital spending.
§
Other Items – Includes information related to contractual obligations, off-balance sheet arrangements, related party transactions, recent accounting pronouncements and similar disclosures.
As generally used in the energy industry and in this discussion, the identified terms have the following meanings:
/
d
= per day
BBtus
= billion British thermal units
Bcf
= billion cubic feet
MBPD
= thousand barrels per day
MMBbls
= million barrels
MMBtus
= million British thermal units
MMcf
= million cubic feet
Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
Unless the context requires otherwise, references to "we," "us," "our" or "Enterprise Products Partners" are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries, including Duncan Energy Partners L.P. ("Duncan Energy Partners").
In addition, references to "TEPPCO" mean TEPPCO Partners, L.P., a publicly traded Delaware limited partnership, which is an affiliate of us.  References to "TEPPCO GP" refer to Texas Eastern Products Pipeline Company LLC, which is the general partner of TEPPCO and wholly owned by Enterprise GP Holdings L.P. ("Enterprise GP Holdings").
References to "Energy Transfer Equity" mean Energy Transfer Equity, L.P. and its consolidated affiliates, including Energy Transfer Partners, L.P.  References to "ETEGP" mean LE GP, LLC, which is the general partner of Energy Transfer Equity.  Enterprise GP Holdings acquired equity interests in Energy Transfer Equity and ETEGP in May 2007.
44
Cautionary Note Regarding Forward-Looking Statements
This discussion contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.  When used in this document, words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "intend," "could," "believe," "may" and similar expressions and statements regarding our plans and objectives for future operations, are intended to identify forward-looking statements.  Although we and our general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither we nor our general partner can give any assurances that such expectations will prove to be correct.  Such statements are subject to a variety of risks,
uncertainties and assumptions as described in more detail in Item 1A, "Risk Factors," included in our annual report on Form 10-K for 2006.  If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected.  You should not put undue reliance on any forward-looking statements.
Overview of Critical Accounting Policies and Estimates
A summary of the significant accounting policies we have adopted and followed in the preparation of our consolidated financial statements is included in our Annual Report on Form 10-K for the year ended December 31, 2006.  Certain of these accounting policies require the use of estimates.  As more fully described therein, the following estimates, in our opinion, are subjective in nature, require the exercise of judgment and involve complex analysis: depreciation methods and estimated useful lives of property, plant and equipment; measuring recoverability of long-lived assets and equity method investments; amortization methods and estimated useful lives of qualifying intangible assets; methods we employ to measure the fair value of goodwill; our revenue recognition policies and use of estimates for revenues and expenses; reserves for environmental matters; and natural gas imbalances.
These estimates are based on our knowledge and understanding of current conditions and actions we may take in the future.  Changes in these estimates will occur as a result of the passage of time and the occurrence of future events.  Subsequent changes in these estimates may have a significant impact on our financial position, results of operations and cash flows.
Overview of Business
We are a North American midstream energy company providing a wide range of services to producers and consumers of natural gas, natural gas liquids ("NGLs"), crude oil and certain petrochemicals.  In addition, we are an industry leader in the development of pipeline and other midstream energy infrastructure in the continental United States and the Gulf of Mexico.  We are a publicly traded Delaware limited partnership formed in 1998, the common units of which are listed on the New York Stock Exchange ("NYSE") under the ticker symbol "EPD."
Our midstream energy asset network links producers of natural gas, NGLs and crude oil from some of the largest supply basins in the United States, Canada and the Gulf of Mexico with domestic consumers and international markets.  We have four reportable business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Offshore Pipelines & Services; and Petrochemical Services.  Our business segments are generally organized and managed according to the type of services rendered (or technologies employed) and products produced and/or sold.
We conduct substantially all of our business through Enterprise Products Operating LLC ("EPO"), as successor in interest by merger to Enterprise Products Operating L.P.  We are owned 98% by our limited partners and 2% by Enterprise Products GP, LLC (our general partner, referred to as "Enterprise Products GP").  Enterprise Products GP is owned 100% by Enterprise GP Holdings, a publicly traded affiliate listed on the NYSE under the ticker symbol "EPE."  We, Enterprise Products GP and Enterprise GP Holdings are affiliates under the common control of Dan L. Duncan, the Chairman and controlling shareholder of EPCO, Inc. ("EPCO").
45
We are committed to the long-term growth and viability of Enterprise Products Partners.  Part of our business strategy involves expansion through business combinations, growth capital projects and investments in joint ventures.  We believe we are positioned to continue to grow our system of assets through the construction of new facilities and to capitalize on expected future production increases from such areas as the Piceance Basin of western Colorado, the Greater Green River Basin in Wyoming, the Barnett Shale in North Texas, and the deepwater Gulf of Mexico.  Management continues to analyze potential acquisitions, joint ventures and similar transactions with businesses that operate in complementary markets or geographic regions.  In recent years, major oil and gas companies have sold non-strategic assets in the midstream energy sector in which we operate.  We expect this trend to
continue, and expect independent oil and natural gas companies to consider similar divestitures.  For information regarding our capital spending, see the discussion of our investing cash flows under "Liquidity and Capital Resources" within this Item 2.
Recent Developments
The following information highlights our significant developments since January 1, 2007 through the date of this filing.
§
In October 2007, we commenced natural gas processing operations at our Meeker facility, which recently completed its first phase of construction.  Located in Colorado's Piceance Basin, our Meeker facility has a processing capacity of 750 MMcf/d of natural gas and is capable of extracting up to 35 MBPD of mixed NGLs.  Phase II of the Meeker facility, which is under construction and expected to be completed in the third quarter of 2008, will double its processing capacity to 1.5 Bcf/d of natural gas and 70 MBPD of mixed NGLs.  The two phases are supported by long-term commitments from producers, including EnCana and ExxonMobil.  Natural gas volumes are expected to exceed 500 MMcf/d by the end of 2007, which are expected to produce more than 27.7 MBPD of mixed NGLs.  The Piceance Basin represents one of the most prolific and fastest growing energy producing
areas in the nation, and the completion of our Meeker facility provides the region with valuable midstream infrastructure needed to accommodate those growing volumes.
§
In October 2007, we completed the expansion of the Rocky Mountain portion of our Mid-America Pipeline ("MAPL") system.  The final phase of this project consisted of installing new pumps and the modification of existing pumps, which increased system capacity by 20 MBPD.  The first phase, which was completed in April 2007, provided an additional 30 MBPD of system capacity.  Overall, these expansion projects increased the capacity of MAPL's Rocky Mountain system from 225 MBPD to 275 MBPD.  This expansion will accommodate expected mixed NGL volumes originating from our Meeker facility.
§
In September 2007, EPO sold $800.0 million in principal amount of 6.30% fixed-rate, unsecured senior notes due September 2017.  Net proceeds from this offering were used to temporarily reduce borrowings outstanding under EPO's Multi-Year Revolving Credit Facility.  In October 2007, EPO used borrowing capacity under its revolver to repay $500.0 million in principal amount due under its Senior Notes E.  See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for information regarding our debt obligations.
§
In August 2007, we entered into a memorandum of understanding with Questar Pipeline Company ("Questar") to develop a new natural gas pipeline hub in the Rockies.  As proposed, the White River Hub would be a header system that will be owned equally by us and Questar.  The facilities would connect our natural gas processing complex near Meeker, Colorado, with up to six interstate pipelines in the Piceance Basin area, including the Questar Pipeline.
§
In August 2007, we completed the expansion of our petrochemical assets in Mont Belvieu and southeast Texas.  This expansion project included (i) the construction of a fourth propylene fractionator at our Mont Belvieu complex, which increased our propylene/propane
46
fractionation capacity by approximately one billion pounds per year, or 15 MBPD, and (ii) the expansion of two refinery grade propylene gathering pipelines which added 50 MBPD of gathering capacity into Mont Belvieu.
§
In August 2007, we completed construction of our Hobbs NGL fractionator, which is designed to handle up to 75 MBPD of mixed NGLs.  The new fractionator is strategically located at the interconnection of our MAPL and our Seminole pipelines near Hobbs, New Mexico.  Our Hobbs NGL fractionator offers another key hub for separating mixed NGLs produced at our Meeker facility into purity NGL products.
§
In July 2007, our Independence Hub platform
and Independence Trail pipeline received first production from deepwater production wells connected to the Independence Hub platform.  As a result, these assets
began earning fee-based revenues for natural gas processing and transportation services.  These amounts are in addition to the demand fee revenues that
Independence Hub began earning in March 2007.  Currently, the platform is receiving approximately 900 MMcf/d of natural gas from fourteen wells.  We expect
that the platform will approach its full capacity of 1 Bcf/d by the end of 2007.
§
In July 2007, we announced changes to our senior management team that became effective August 1, 2007. The board of directors of our general partner elected Michael A. Creel president and chief executive officer, W. Randall Fowler executive vice president
and
chief financial officer, and William Ordemann executive vice president and chief operating officer.  Mr. Creel replaces Robert G. Phillips who resigned effective June 30, 2007.  Mr. Fowler was promoted to fill the position left vacant by Mr. Creel's promotion.  Mr. Ordemann was promoted to fill the position vacated by Dr. Ralph S. Cunningham, who is now the president and chief executive officer of Enterprise GP Holdings.  Mr. Creel had previously held this position.
§
In July 2007, we completed the first portion of the Phase V Expansion of the Jonah Gathering System, which increased the system gathering capacity to 2.0 Bcf/d.  The second and final phase of the expansion, which is targeted for completion in the first quarter of 2008, is expected to increase the system's gathering capacity further to 2.3 Bcf/d.
§
In June 2007, we announced the completion of our project to expand the capabilities of our import/export terminal at the Houston Ship Channel to handle incremental volumes of natural gas liquids and liquefied petroleum gases.
§
In May 2007, EPO sold $700 million in principal amount of fixed/floating unsecured junior subordinated notes due January 2068.  Net proceeds from this offering were used by EPO to temporarily reduce borrowings outstanding under its Multi-Year Revolving Credit Facility and for general partnership purposes.
§
In March 2007, we formed a natural gas services and marketing business similar to our existing NGL and petrochemical marketing businesses.  This new group will be the focal point for all of our existing natural gas supply and marketing activities, which currently include producer wellhead services, facility fuel procurement, pipeline and storage capacity optimization, and a full range of market customer delivery arrangements.  This initiative is expected to broaden our role in the natural gas markets by linking our extensive U.S. natural gas pipeline and storage assets, thus providing customers with value-added solutions and reducing our operating costs through enhanced fuel procurement practices.
§
In February 2007, a consolidated subsidiary of ours, Duncan Energy Partners, completed its underwritten initial public offering of 14,950,000 common units.  Duncan Energy Partners, a Delaware limited partnership, was formed to acquire ownership interests in certain of our midstream energy businesses.  For additional information regarding Duncan Energy Partners,
47
see "Other Items – Initial Public Offering of Duncan Energy Partners" included within this Item 2.
Results of Operations
We have four reportable business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Offshore Pipelines & Services; and Petrochemical Services.  Our business segments are generally organized and managed according to the type of services rendered (or technologies employed) and products produced and/or sold.
We evaluate segment performance based on the non-GAAP financial measure of gross operating margin.  Gross operating margin (either in total or by individual segment) is an important performance measure of the core profitability of our operations.  This measure forms the basis of our internal financial reporting and is used by senior management in deciding how to allocate capital resources among business segments.  We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results. The GAAP financial measure most directly comparable to total segment gross operating margin is operating income. Our non-GAAP financial measure of total segment gross operating margin should not be considered as an alternative to GAAP operating income.
We define total segment gross operating margin as consolidated operating income before (i) depreciation, amortization and accretion expense; (ii) operating lease expenses for which we do not have the payment obligation; (iii) gains and losses on the sale of assets; and (iv) general and administrative costs.  Gross operating margin is exclusive of other income and expense transactions, provision for income taxes, minority interest, extraordinary charges and the cumulative effect of change in accounting principle.  Gross operating margin by segment is calculated by subtracting segment operating costs and expenses (net of the adjustments noted above) from segment revenues, with both segment totals before the elimination of intersegment and intrasegment transactions.  Intercompany accounts and transactions are eliminated in consolidation.
We include earnings from equity method unconsolidated affiliates in our measurement of segment gross operating margin and operating income.  Our equity investments with industry partners are a vital component of our business strategy.  They are a means by which we conduct our operations to align our interests with those of our customers and/or suppliers.  This method of operation also enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed versus what we could accomplish on a stand-alone basis.  Many of these businesses perform supporting or complementary roles to our other business operations.  As circumstances dictate, we may increase our ownership interest in equity investments, which could result in their subsequent consolidation into our operations.
Our consolidated gross operating margin amounts include the gross operating margin amounts of Duncan Energy Partners on a 100% basis.  Volumetric data associated with the operations of Duncan Energy Partners are also included on a 100% basis in our consolidated statistical data.
For additional information regarding our business segments, see Note 11 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.
48
Selected Price and Volumetric Data
The following table illustrates selected quarterly industry index prices for natural gas, crude oil and selected NGL and petrochemical products for the periods presented.
Polymer
Refinery
Natural
Normal
Natural
Grade
Grade
Gas,
Crude Oil,
Ethane,
Propane,
Butane,
Isobutane,
Gasoline,
Propylene,
Propylene,
$/MMBtu
$/barrel
$/gallon
$/gallon
$/gallon
$/gallon
$/gallon
$/pound
$/pound
(1)
(2)
(1)
(1)
(1)
(1)
(1)
(1)
(1)
2006
1st Quarter
$9.01
$63.35
$0.57
$0.94
$1.20
$1.27
$1.38
$0.45
$0.40
2nd Quarter
$6.80
$70.53
$0.68
$1.05
$1.22
$1.26
$1.52
$0.50
$0.44
3rd Quarter
$6.58
$70.44
$0.76
$1.10
$1.28
$1.30
$1.53
$0.51
$0.46
4th Quarter
$6.56
$60.03
$0.62
$0.95
$1.11
$1.12
$1.31
$0.44
$0.35
2006 Averages
$7.24
$66.09
$0.66
$1.01
$1.20
$1.24
$1.44
$0.47
$0.41
2007
1st Quarter
$6.77
$58.02
$0.59
$0.97
$1.13
$1.22
$1.37
$0.45
$0.40
2nd Quarter
$7.55
$64.97
$0.72
$1.13
$1.33
$1.45
$1.65
$0.51
$0.46
3rd Quarter
$6.16
$75.48
$0.82
$1.23
$1.44
$1.49
$1.68
$0.52
$0.46
2007 Averages
$6.83
$66.15
$0.71
$1.11
$1.30
$1.38
$1.57
$0.49
$0.44
(1)    Natural gas, NGL, polymer grade propylene and refinery grade propylene prices represent an average of various commercial index prices including Oil Price Information Service ("OPIS") and Chemical Market Associates, Inc. ("CMAI").  Natural gas price is representative of Henry-Hub I-FERC.  NGL prices are representative of Mont Belvieu Non-TET pricing.  Refinery grade propylene represents an average of CMAI spot prices.  Polymer-grade propylene represents average CMAI contract pricing.
(2)
Crude oil price is representative of an index price for West Texas Intermediate.
The following table presents our significant average throughput, production and processing volumetric data.  These statistics are reported on a net basis, taking into account our ownership interests in certain joint ventures, and reflect the periods in which we owned an interest in such operations.
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
NGL Pipelines & Services, net:
NGL transportation volumes (MBPD)
1,575
1,706
1,626
1,579
NGL fractionation volumes (MBPD)
371
341
379
302
Equity NGL production (MBPD)
64
67
67
63
Fee-based natural gas processing (MMcf/d)
2,269
2,237
2,358
2,224
Onshore Natural Gas Pipelines & Services, net:
Natural gas transportation volumes (BBtus/d)
6,597
6,049
6,576
6,066
Offshore Pipelines & Services, net:
Natural gas transportation volumes (BBtus/d)
1,271
1,573
1,322
1,524
Crude oil transportation volumes (MBPD)
163
173
164
149
Platform gas processing (MMcf/d)
286
160
295
158
Platform oil processing (MBPD)
24
12
24
12
Petrochemical Services, net:
Butane isomerization volumes (MBPD)
96
82
93
83
Propylene fractionation volumes (MBPD)
59
57
58
55
Octane additive production volumes (MBPD)
11
11
9
8
Petrochemical transportation volumes (MBPD)
108
101
104
94
Total, net:
NGL, crude oil and petrochemical transportation volumes (MBPD)
1,846
1,980
1,894
1,822
Natural gas transportation volumes (BBtus/d)
7,868
7,622
7,898
7,590
Equivalent transportation volumes (MBPD) (1)
3,917
3,986
3,972
3,819
(1) Reflects equivalent energy volumes where 3.8 MMBtus of natural gas are equivalent to one barrel of NGLs.
49
Comparison of Results of Operations
The following table summarizes the key components of our results of operations for the periods indicated (dollars in thousands):
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2007
2006
2007
2006
Revenues
$    4,111,996
$    3,872,525
$    11,647,656
$    10,640,452
Operating costs and expenses
3,896,411
3,584,783
10,981,562
9,955,231
General and administrative costs
18,715
15,823
66,706
45,798
Equity in income of unconsolidated affiliates
13,960
2,265
13,928
14,306
Operating income
210,830
274,184
613,316
653,729
Interest expense
85,075
62,793
219,708
177,203
Net income
117,606
208,302
371,805
468,374
Our gross operating margin by segment and in total is as follows for the periods indicated (dollars in thousands):
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2007
2006
2007
2006
Gross operating margin by segment:
NGL Pipelines & Services
$    190,209
$    232,037
$       589,708
$       549,401
Onshore Natural Gas Pipelines & Services
75,424
77,489
235,102
260,943
Offshore Pipelines & Services
46,676
38,364
97,429
76,131
Petrochemical Services
51,412
51,851
139,329
136,413
Total segment gross operating margin
$    363,721
$    399,741
$    1,061,568
$    1,022,888
For a reconciliation of non-GAAP gross operating margin to GAAP operating income and further to GAAP income before provision for income taxes, minority interest and the cumulative effect of change in accounting principle, see "Other Items – Non-GAAP reconciliations" included within this Item 2.
The following table summarizes the contribution to consolidated revenues from the sale of NGL, natural gas and petrochemical products during the periods indicated (dollars in thousands):
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
NGL Pipelines & Services:
Sale of NGL products
$    2,837,465
$    2,640,568
$    7,952,147
$    7,276,342
Percent of consolidated revenues
69%
68%
68%
68%
Onshore Natural Gas Pipelines & Services:
Sale of natural gas
406,482
312,116
1,190,235
943,480
Percent of consolidated revenues
10%
8%
10%
9%
Petrochemical Services:
Sale of petrochemical products
444,670
417,395
1,268,731
1,157,184
Percent of consolidated revenues
11%
11%
11%
11%
As noted in the following sections, changes in our revenues period-to-period are explained in part by changes in energy commodity prices.
Comparison of Three Months Ended September 30, 2007 with
Three Months Ended September 30, 2006
Consolidated revenues increased $239.5 million quarter-to-quarter to $4.11 billion for the third quarter of 2007 from $3.87 billion for the third quarter of 2006.  The quarter-to-quarter increase in consolidated revenues is primarily due to higher NGL sales prices and natural gas sales volumes in the third
50
quarter of 2007 relative to the third quarter of 2006.  These factors contributed to a $318.5 million increase in consolidated revenues from our NGL, natural gas and petrochemical marketing activities.  Revenues for the third quarter of 2007 include $2.0 million of proceeds from business interruption insurance claims compared to $50.2 million of such proceeds received during the third quarter of 2006.  See Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding proceeds from our business interruption insurance claims.
Operating costs and expenses were $3.90 billion for the third quarter of 2007 versus $3.58 billion for the third quarter of 2006.  The $311.6 million quarter-to-quarter increase in consolidated operating costs and expenses is primarily due to a $321.2 million increase in the cost of sales associated with our NGL, natural gas and petrochemical marketing activities caused by higher sales volumes and energy commodity prices.  General and administrative costs were $18.7 million for the third quarter of 2007 compared to $15.8 million for the third quarter of 2006.
Changes in our revenues and costs and expenses quarter-to-quarter are explained in part by changes in energy commodity prices.  The weighted-average indicative market price for NGLs was $1.21 per gallon during the third quarter of 2007 versus $1.09 per gallon during the third quarter of 2006.  Our determination of the weighted-average indicative market price for NGLs is based on U.S. Gulf Coast prices for such products at Mont Belvieu, Texas, which is the primary industry hub for domestic NGL production.  The market price of natural gas (as measured at Henry Hub) averaged $6.16 per MMBtu during the third quarter of 2007 versus $6.58 per MMBtu during the third quarter of 2006.  For additional historical energy commodity pricing information, see the table on page 49.
Equity earnings from our unconsolidated affiliates were $14.0 million for the third quarter of 2007 compared to $2.3 million for the third quarter of 2006.  The third quarter of 2006 included a $7.4 million non-cash impairment charge related to our investment in Neptune Pipeline Company, L.L.C. ("Neptune").  The third quarter of 2007 includes $2.4 million of equity earnings from our investment in Jonah.  Certain capital spending thresholds and operational milestones were achieved during the third quarter of 2007 with respect to the Phase V Expansion of the Jonah Gathering System.  We earned a fixed 19.4% interest in Jonah as a result.
Operating income for the third quarter of 2007 was $210.8 million compared to $274.2 million for the third quarter of 2006.  Collectively, the aforementioned changes in revenues, costs and expenses and equity earnings contributed to the $63.4 million decrease in operating income quarter-to-quarter.
Interest expense increased $22.3 million quarter-to-quarter primarily due to our issuance of junior subordinated notes in the third quarter of 2006 and the second quarter of 2007 and the issuance of Senior Notes L in the third quarter of 2007.  Our consolidated interest expense for the third quarter of 2007 includes $3.2 million associated with Duncan Energy Partners' credit facility.  Our average debt principal outstanding was $6.6 billion in the third quarter of 2007 compared to $5.0 billion in the third quarter of 2006.  Minority interest expense increased $5.8 million quarter-to-quarter attributable to the public unit holders of Duncan Energy Partners and third-party ownership interests in the Independence Hub platform.
As a result of items noted in the previous paragraphs, our consolidated net income decreased $90.7 million quarter-to-quarter to $117.6 million in the third quarter of 2007 compared to $208.3 million in the third quarter of 2006.
The following information highlights significant quarter-to-quarter variances in gross operating margin by business segment:
NGL Pipelines & Services
.  Gross operating margin from this business segment was $190.2 million for the third quarter of 2007 compared to $232.0 million for the third quarter of 2006.  The third quarter of 2007 includes $1.8 million of proceeds from business interruption insurance claims compared to $30.1 million of proceeds during the third quarter of 2006.  The following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims.
51
Gross operating margin from our natural gas processing and related NGL marketing business was $96.1 million for the third quarter of 2007 compared to $107.9 million for the third quarter of 2006.  Equity NGL production decreased to 64 MBPD during the third quarter of 2007 from 67 MBPD during the third quarter of 2006.  The $11.8 million quarter-to-quarter decrease in gross operating margin is primarily due to lower NGL marketing sales volumes and increased natural gas hedging expenses.  In addition, the third quarter of 2007 includes expenses attributable to a delay in the initial start-up of our Meeker natural gas processing plant, which commenced operations in October 2007 approximately two months later than our original expectations.
Gross operating margin from our NGL pipelines and related storage business was $71.2 million for the third quarter of 2007 compared to $56.6 million for the third quarter of 2006.  Total NGL transportation volumes decreased to 1,575 MBPD during the third quarter of 2007 from 1,706 MBPD during the third quarter of 2006 primarily attributable to lower import volumes.  The $14.6 million quarter-to-quarter increase in gross operating margin from this business is primarily due to higher NGL transportation volumes and tariffs on our Mid-America Pipeline System during the third quarter of 2007 relative to the same quarter in 2006 and the addition of gross operating margin from the DEP South Texas NGL Pipeline, which became operational in January 2007, both of which were partially offset by the effects of lower import volumes.
Gross operating margin from NGL fractionation was $21.1 million for the third quarter of 2007 compared to $37.4 million for the third quarter of 2006.  Fractionation volumes increased to 371 MBPD during the third quarter of 2007 from 341 MBPD during the third quarter of 2006.  The $16.3 million quarter-to-quarter decrease in gross operating margin is largely due to (i) lower measurement gains during the third quarter of 2007 relative to the same quarter in 2006, (ii) a 7 MBPD decrease in fractionation volumes and higher operating expenses at our Norco NGL fractionator and (iii) start-up costs for our Hobbs NGL fractionator.  The Hobbs NGL fractionator became operational in August 2007 and accounted for 22 MBPD of the quarter-to-quarter increase in fractionation volumes.
Onshore Natural Gas Pipelines & Services
.  Gross operating margin from this business segment was $75.4 million for the third quarter of 2007 compared to $77.5 million for the third quarter of 2006.  Gross operating margin from our onshore natural gas pipeline business was $67.8 million for the third quarter of 2007 compared to $76.4 million for the third quarter of 2006.  Onshore natural gas transportation volumes increased to 6,597 BBtu/d during the third quarter of 2007 from 6,049 BBtu/d for the third quarter of 2006.  The $8.6 million quarter-to-quarter decrease in gross operating margin from this business is primarily due to lower volumes on our San Juan Gathering System and higher pipeline integrity and operating expenses on our Texas Intrastate System.
Segment gross operating margin for the third quarter of 2007 includes $1.4 million from the Piceance Creek Gathering System, which we acquired in December 2006 and placed in-service during January 2007, and $2.4 million of equity earnings from Jonah.  The Piceance Creek Gathering System and our net share of the gathering volumes on the Jonah Gathering System contributed 404 BBtu/d and 359 BBtu/d, respectively, of natural gas gathering volumes during the third quarter of 2007.
Gross operating margin from our natural gas storage business increased $6.6 million quarter-to-quarter primarily due to a decrease in repair-related costs at our Wilson natural gas storage facility.  Three storage wells at our Wilson facility were taken out of service in the second quarter of 2006  One cavern resumed limited operations during October 2007 and the remaining two storage wells are expected to resume commercial operations in the fourth quarter of 2007.  Also, gross operating margin for the third quarter of 2007 includes a $2.4 million charge for the write-off of accumulated conversion costs related to a cavern at the Petal storage facility in Mississippi that was deemed unsuitable to convert from NGL to natural gas storage service.
Offshore Pipelines & Services
.  Gross operating margin from this business segment was $46.7 million for the third quarter of 2007 compared to $38.4 million for the third quarter of 2006.  Segment gross operating margin for the third quarter of 2007 includes $0.2 million of proceeds from business interruption insurance claims compared to $20.1 million of proceeds in the third quarter of 2006.  The
52
following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims.
Gross operating margin from our offshore platforms and services business was $28.8 million for the third quarter of 2007 compared to $8.6 million for the third quarter of 2006.  The $20.2 million quarter-to-quarter increase in gross operating margin is primarily due to our Independence Hub platform, which began earning revenues in March 2007.  The Independence Hub received first production in July 2007 and contributed $16.4 million of the increase in gross operating margin quarter-to-quarter from fixed and volumetric revenues earned on an average throughput of 124 MMcf/d of natural gas during the third quarter of 2007.
Gross operating margin from our offshore natural gas pipeline business was $8.8 million for the third quarter of 2007 compared to $0.9 million for the third quarter of 2006, an increase of $7.9 million quarter-to-quarter.  Offshore natural gas transportation volumes were 1,271 BBtu/d during the third quarter of 2007 versus 1,573 BBtu/d during the third quarter of 2006.  The third quarter of 2006 includes a $7.4 million non-cash impairment charge related to our investment in Neptune.  Gross operating margin from our HIOS system increased $4.6 million quarter-to-quarter primarily due to an increase in the tariff rate charged to shippers.  Also, gross operating margin for the third quarter of 2007 includes $3.1 million from our Independence Trail pipeline, which became operational in July 2007.  Collectively, gross operating margin from our other natural gas pipelines decreased $7.2 million
quarter-to-quarter primarily due to lower volumes.
Gross operating margin from our offshore crude oil pipeline business was $8.9 million for the third quarter of 2007 compared to $8.8 million for the third quarter of 2006.  Offshore crude oil transportation volumes decreased to 163 MBPD during the third quarter of 2007 from 173 MBPD during the third quarter of 2006.  Equity earnings from Cameron Highway increased $2.7 million quarter-to-quarter attributable to higher volumes and lower interest expense.  Collectively, gross operating margin from our other offshore crude oil pipelines decreased $2.6 million quarter-to-quarter primarily due to lower transportation volumes during the third quarter of 2007 compared to the same quarter in 2006.
Petrochemical Services
.  Gross operating margin from this business segment was $51.4 million for the third quarter of 2007 compared to $51.9 million for the third quarter of 2006.  Gross operating margin from our butane isomerization business was $28.5 million for the third quarter of 2007 compared to $18.5 million for the third quarter of 2006.  The $10.0 million quarter-to-quarter increase in gross operating margin is primarily due to a 17% increase in volumes, which increased to 96 MBPD during the third quarter of 2007 from 82 MBPD during the third quarter of 2006.
Gross operating margin from our octane enhancement business was $8.9 million for the third quarter of 2007 compared to $18.4 million for the third quarter of 2006.  Gross operating margin from this business decreased $9.5 million quarter-to-quarter primarily due to lower isooctane sales margins and higher maintenance expenses in the third quarter of 2007 versus the third quarter of 2006.  Gross operating margin from our propylene fractionation and pipeline business was $14.0 million for the third quarter of 2007 versus $14.9 million for the third quarter of 2006.  The $0.9 million quarter-to-quarter decrease in gross operating margin is largely due to higher maintenance expenses during the third quarter of 2007 compared to the third quarter of 2006.
Comparison of Nine Months Ended September 30, 2007 with
Nine Months Ended September 30, 2006
Revenues for the first nine months of 2007 were $11.65 billion compared to $10.64 billion for the first nine months of 2006.  The $1.01 billion period-to-period increase in consolidated revenues is primarily due to higher sales volumes and energy commodity prices during the first nine months of 2007 relative to the 2006 period.  These differences accounted for a $1.03 billion increase in consolidated revenues associated with our marketing activities.  Revenues for the first nine months of 2007 include $24.9 million of proceeds from business interruption insurance claims compared to $62.4 million of proceeds during the first nine months of 2006.  In addition, revenues from recent business combinations or newly constructed
53
assets (principally those attributable to the Encinal acquisition and the Independence Hub platform) increased $87.1 million period-to-period.
Operating costs and expenses were $10.98 billion for the first nine months of 2007 compared to $9.96 billion for the first nine months of 2006.  The $1.02 billion period-to-period increase in consolidated operating costs and expenses is largely due to an increase in the costs of sales associated with our marketing activities.  The cost of sales of our natural gas, NGL and petrochemical products increased $738.3 million period-to-period as a result of an increase in volumes and higher energy commodity prices.  Consolidated operating costs and expenses attributable to recent business combinations or newly constructed assets increased $114.7 million period-to-period.
General and administrative costs were $66.7 million for the first nine months of 2007 compared to $45.8 million for the first nine months of 2006.  The $20.9 million period-to-period increase in general and administrative costs is primarily due to the recognition of a severance obligation during the first nine months of 2007 and an increase in legal fees.
Changes in our revenues and costs and expenses period-to-period are explained in part by changes in energy commodity prices.  The weighted-average indicative market price for NGLs was $1.09 per gallon for the first nine months of 2007 versus $1.02 per gallon during the first nine months of 2006.  The Henry Hub market price for natural gas averaged $6.83 per MMBtu for the first nine months of 2007 versus $7.47 per MMBtu during the 2006 period.
Equity earnings from unconsolidated affiliates decreased $0.4 million to $13.9 million for the first nine months of 2007 compared to $14.3 million for the 2006 period.  The first nine months of 2007 include a $7.0 million non-cash impairment charge associated with our investment in Nemo Gathering Company, LLC ("Nemo") compared to a $7.4 million charge related to our investment in Neptune during the 2006 period.  Equity earnings from our investment in Cameron Highway decreased $5.0 million period-to-period primarily due to expenses we recognized during first nine months of 2007 associated with the early retirement of Cameron Highway's debt.  The first nine months of 2007 include $4.4 million of equity earnings from our investment in Jonah.
Operating income for the first nine months of 2007 was $613.3 million compared to $653.7 million for the first nine months of 2006.  Collectively, the aforementioned changes in revenues, costs and expenses and equity earnings contributed to the $40.4 million decrease in operating income period-to-period.
Interest expense increased to $219.7 million for the first nine months of 2007 from $177.2 million for the first nine months of 2006.  The $42.5 million period-to-period increase in interest expense is primarily due to higher outstanding debt principal balances during the first nine months of 2007 compared to the same period in 2006.  Our average debt principal outstanding was $6.0 billion for the first nine months of 2007 compared to $4.8 billion for the first nine months of 2006.  Also, our consolidated interest expense for the first nine months of 2007 includes $6.7 million associated with Duncan Energy Partners' credit facility.  Minority interest expense increased $14.5 million period-to-period attributable to the public unitholders of Duncan Energy Partners and third-party ownership interests in the Independence Hub platform.
As a result of the items noted in previous paragraphs, our consolidated net income decreased $96.6 million to $371.8 million for the nine months ended September 30, 2007 compared to $468.4 million for the 2006 period.  The first nine months of 2006 include a $1.5 million benefit related to the cumulative effect of a change in accounting principle resulting from our adoption of Statement of Financial Accounting Standards ("SFAS") 123(R) on January 1, 2006.  For additional information regarding this cumulative effect adjustment, please read Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.
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The following information highlights the significant period-to-period variances in gross operating margin by business segment:
NGL Pipelines & Services
.  Gross operating margin from this business segment was $589.7 million for the first nine months of 2007 compared to $549.4 million for the first nine months of 2006, a period-to-period increase of $40.3 million.  The first nine months of 2007 include $23.4 million of proceeds from business interruption insurance claims compared to $40.4 million of proceeds during the first nine months of 2006.  The following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims.
Gross operating margin from our natural gas processing and related NGL marketing business was $283.5 million for the first nine months of 2007 compared to $268.9 million for the first nine months of 2006.  The $14.6 million period-to-period increase in gross operating margin is primarily due to higher processing volumes at our south Louisiana and Chaco natural gas processing plants during the first nine months of 2007 relative to the 2006 period.  Fee-based processing volumes increased to 2.4 Bcf/d during the first nine months of 2007 from 2.2 Bcf/d during the first nine months of 2006.  Equity NGL production volumes increased to 67 MBPD during the first nine months of 2007 from 63 MBPD during the 2006 period.
Gross operating margin from our NGL pipelines and storage business was $215.5 million for the first nine months of 2007 compared to $175.7 million for the first nine months of 2006.  Total NGL transportation volumes increased to 1,626 MBPD for the first nine months of 2007 from 1,579 MBPD for the 2006 period.  The $39.8 million period-to-period increase in gross operating margin is largely due to higher pipeline transportation and NGL storage volumes at certain of our facilities and higher transportation fees charged to shippers on our Mid-America Pipeline System.  In addition, the first nine months of 2007 include $15.3 million of gross operating margin generated by the DEP South Texas NGL Pipeline.
Gross operating margin from our NGL fractionation business was $67.3 million for the first nine months of 2007 compared to $64.4 million for the first nine months of 2006.  Fractionation volumes increased from 302 MBPD during the first nine months of 2006 to 379 MBPD during the first nine months of 2007.  The $2.9 million period-to-period increase in gross operating margin is primarily due to higher volumes at our Norco NGL fractionator during the first nine months of 2007 relative to the 2006 period.  Our Norco NGL fractionator returned to normal operating rates in the second quarter of 2006 after suffering a reduction of processing volumes due to the effects of Hurricane Katrina.
Onshore Natural Gas Pipelines & Services
.  Gross operating margin from this business segment was $235.1 million for the first nine months of 2007 compared to $260.9 million for the first nine months of 2006.  Gross operating margin from our onshore natural gas pipeline business was $216.2 million for the first nine months of 2007 compared to $246.6 million for the 2006 period.  Onshore natural gas transportation volumes were 6,576 BBtu/d during the first nine months of 2007 compared to 6,066 BBtu/d during the 2006 period.  The $30.4 million period-to-period decrease in gross operating margin is largely due to lower natural gas sales margins on our Acadian and Permian Basin Systems and higher pipeline integrity and operating costs on our Texas Intrastate System.
The first nine months of 2007 include $3.6 million of gross operating margin from our Piceance Creek Gathering System and $4.4 million of equity earnings from Jonah.  The Piceance Creek Gathering System and our net share of the gathering volumes on the Jonah Gathering System contributed 718 BBtu/d, collectively, of natural gas gathering volumes during the first nine months of 2007.
Gross operating margin from our natural gas storage business was $18.9 million for the first nine months of 2007 compared to $14.3 million for the first nine months of 2006. The $4.6 million increase period-to-period is largely due to lower repair-related costs at our Wilson natural gas storage facility.
Offshore Pipelines & Services
.  Gross operating margin from this business segment was $97.4 million for the first nine months of 2007 compared to $76.1 million for the first nine months of 2006.  The
55
first nine months of 2007 include $1.5 million of proceeds from business interruption insurance claims compared to $22.0 million of proceeds during the first nine months of 2006.  In addition, insurance costs for our offshore assets increased to $20.1 million for the first nine months of 2007 compared to $13.8 million for the first nine months of 2006.  Insurance costs for our offshore operations have increased as a result of industry losses associated with significant storms in recent years.  The following paragraphs provide a discussion of segment results excluding proceeds from business interruption insurance claims and insurance costs.
Gross operating margin from our offshore platforms and services business was $69.5 million for the first nine months of 2007 compared to $23.4 million for the first nine months of 2006.  The $46.1 million period-to-period increase is primarily due to our Independence Hub platform, which contributed $34.1 million of gross operating margin for the first nine months of 2007.  In addition, gross operating margin from this business increased $12.0 million period-to-period primarily due to higher volumes during the first nine months of 2007 compared to the 2006 period.
Gross operating margin from our offshore natural gas pipeline business was $34.6 million for the first nine months of 2007 compared to $28.3 million for the first nine months of 2006.  Offshore natural gas transportation volumes were 1,322 BBtu/d during the first nine months of 2007 versus 1,524 BBtu/d during the first nine months of 2006.  The $6.3 million increase period-to-period in gross operating margin is primarily due to an increase in the tariff rate charged to shippers on HIOS.  The first nine months of 2007 includes a $7.0 million non-cash impairment charge associated with our investment in Nemo compared to a $7.4 million charge related to our investment in Neptune during the 2006 period.  Also, the first nine months of 2007 include $3.1 million of gross operating margin from the Independence Trail pipeline.
Gross operating margin from our offshore crude oil pipeline business was $11.9 million for the first nine months of 2007 versus $16.2 million for the first nine months of 2006.  Offshore crude oil transportation volumes were 164 MBPD for the first nine months of 2007 compared to 149 MBPD for the first nine months of 2006.  Improved gross operating margin period-to-period from our Marco Polo, Constitution and Poseidon Oil Pipelines was more than offset by a one-time expense of $8.8 million in the first nine months of 2007 associated with the early termination of Cameron Highway's credit facility.  Collectively, gross operating margin from our Marco Polo, Constitution and Poseidon Oil Pipelines increased $2.7 million period-to-period due to higher volumes and fees.
Petrochemical Services
.  Gross operating margin from this business segment was $139.3 million for the first nine months of 2007 compared to $136.4 million for the first nine months of 2006.  Gross operating margin from butane isomerization was $71.7 million for the first nine months of 2007 compared to $57.1 million for the first nine months of 2006.  Butane isomerization volumes increased to 93 MBPD during the first nine months of 2007 from 83 MBPD during the first nine months of 2006.  The $14.6 million period-to-period increase in gross operating margin is largely due to higher processing volumes.
Gross operating margin from our octane enhancement business was $22.1 million for the first nine months of 2007 compared to $27.8 million for the first nine months of 2006.  The $5.7 million period-to-period decrease in gross operating margin is primarily due to lower sales margins.  Gross operating margin from our propylene fractionation business was $45.6 million for the first nine months of 2007 versus $51.5 million for the first nine months of 2006.  The $5.9 million period-to-period decrease in gross operating margin is largely due to lower propylene sales margins and higher power-related costs in the first nine months of 2007 versus the 2006 period.
Liquidity and Capital Resources
At September 30, 2007, we had $43.9 million of unrestricted cash on hand and approximately $1.1 billion of available credit under EPO's Multi-Year Revolving Credit Facility.  At September 30, 2007, there was approximately $83.9 million of available credit under Duncan Energy Partners' Credit Facility.  We had approximately $6.8 billion in principal outstanding under consolidated debt agreements at September 30, 2007.  We were in compliance with the financial and other compliance requirements of our consolidated debt obligations at September 30, 2007.
56
We believe that we will have access to capital markets and continue to have adequate liquidity to fund future recurring operating and investing activities.  Our primary cash requirements, in addition to normal operating expenses and debt service, are for working capital, capital expenditures, business acquisitions and distributions to our partners.  We expect to fund our short-term needs for such items as operating expenses and sustaining capital expenditures with operating cash flows and short-term revolving credit arrangements.  Capital expenditures for long-term needs resulting from internal growth projects and business acquisitions are expected to be funded by a variety of sources (either separately or in combination) including operating cash flows, borrowings under credit facilities, the issuance of additional equity and debt securities and proceeds from divestitures of ownership
interest in assets to affiliates or third parties.  We expect to fund cash distributions to partners primarily with operating cash flows.  Our debt service requirements are expected to be funded by operating cash flows and/or refinancing arrangements.
Registration Statements
We may issue equity or debt securities to assist us in meeting our liquidity and capital spending requirements. Duncan Energy Partners may do likewise in meeting its liquidity and capital spending requirements.  Enterprise Products Partners L.P. and EPO have a universal shelf registration statement on file with the U.S. Securities and Exchange Commission ("SEC") that would allow these entities to issue an unlimited amount of debt and equity securities for general partnership purposes.
In addition, Enterprise Products Partners has filed a registration statement with the SEC authorizing the issuance of up to 25,000,000 of its common units in connection with a distribution reinvestment plan ("DRIP").  The DRIP provides Enterprise Products Partners' unitholders of record and beneficial owners of its common units a voluntary means by which they can increase the number of common units they own by reinvesting the quarterly cash distributions they would otherwise receive from Enterprise Products Partners into the purchase of additional common units.  During the nine-month period ended September 30, 2007, Enterprise Products Partners issued 1,518,291 of its common units in connection with the DRIP and a related plan.  The issuance of these common units generated $45.3 million in proceeds.
Credit Ratings of EPO
At November 1, 2007, the investment-grade credit ratings of EPO's debt securities were Baa3 by Moody's Investor Services ("Moody's"); BBB- by Fitch Ratings ("Fitch"); and BBB- by Standard and Poor's ("S&P").  A rating reflects only the view of a rating agency and is not a recommendation to buy, sell or hold any indebtedness.  Any rating can be revised upward or downward or withdrawn at any time by a rating agency if it determines that the circumstances warrant such a change and should be evaluated independently of any other rating.
Cash Flows from Operating, Investing and Financing Activities
The following table summarizes our net cash flows from operating, investing and financing activities for the periods indicated (dollars in thousands).  For information regarding the individual components of our cash flow amounts, see the Unaudited Condensed Statements of Consolidated Cash Flows included under Item 1 of this quarterly report.
For the Nine Months
Ended September 30,
2007
2006
Net cash flows provided by operating activities
$     937,835
$     986,024
Cash used in investing activities
2,039,495
1,217,238
Cash provided by financing activities
1,122,575
306,516
Net cash flows provided by operating activities are largely dependent on earnings from our business activities.  As a result, these cash flows are exposed to certain risks.  We operate predominantly in the midstream energy industry.  We provide services for producers and consumers of natural gas, NGLs
57
and crude oil.  The products that we process, sell or transport are principally used as fuel for residential, agricultural and commercial heating; feedstocks in petrochemical manufacturing; and in the production of motor gasoline.  Reduced demand for our services or products by industrial customers, whether because of general economic conditions, reduced demand for the end products made with our products or increased competition from other service providers or producers due to pricing differences or other reasons could have a negative impact on our earnings and thus the availability of cash from operating activities.
Operating activities
.  Net cash flows from operating activities was $937.8 million for the nine months ended September 30, 2007 compared to $986.0 million for the same period in 2006.  The following information highlights significant factors that influenced the $48.2 million period-to-period decrease in net cash flows from operating activities:
§
Cash proceeds from business interruption and property damage claims decreased $63.4 million period-to-period.  For information regarding such proceeds, see Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.
§
Excluding cash proceeds from insurance claims, the timing of other cash receipts and payments related to our operations increased $36.8 million period-to-period primarily due to timing considerations and higher gross operating margins.
§
Cash payments for interest increased $43.1 million period-to-period primarily due to higher debt balances resulting from our capital spending program.
§
Cash distributions received from unconsolidated affiliates increased $25.3 million period-to-period primarily due to improved earnings from our Gulf of Mexico investments, which were negatively impacted during the nine months ended September 30, 2006 due to the lingering effects of Hurricanes Katrina and Rita.
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Investing activities
.  Cash used in investing activities was $2.04 billion for the nine months ended September 30, 2007 compared to $1.22 billion for the same period in 2006.  The $822.3 million increase in net cash outflows is primarily due to a $747.8 million increase in capital spending between periods.  The following table summarizes our cash basis capital spending by activity for the periods indicated (dollars in thousands):
For the Nine Months
Ended September 30,
2007
2006
Capital spending for business combinations:
Encinal acquisition, excluding non-cash equity consideration (1)
$                 --
$       144,973
Additional ownership interests in Dixie Pipeline Company ("Dixie") and other
785
--
Total
785
144,973
Capital spending for property, plant and equipment, net:
(2)
Growth capital projects (3)
1,531,679
881,397
Sustaining capital projects (4)
100,314
95,274
Total
1,631,993
976,671
Capital spending attributable to unconsolidated affiliates:
Investments in and advances to unconsolidated affiliates (5)
329,115
92,434
Total
329,115
92,434
Total capital spending
$    1,961,893
$    1,214,078
(1)   Excludes $181.1 million of non-cash consideration paid to the seller in the form of 7,115,844 of our common units.  See Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding our business combinations.
(2)   On certain of our capital projects, third parties are obligated to reimburse us for all or a portion of project expenditures.  The majority of such arrangements are associated with projects related to pipeline construction and production well tie-ins. Such contributions in aid of construction costs were $52.3 million and $63.7 million for the nine months ended September 30, 2007 and 2006, respectively.
(3)   Growth capital projects either (i) result in additional revenue streams from existing assets or (ii) expand our asset base through construction of new facilities that will generate additional revenue streams.
(4)   Sustaining capital expenditures are capital expenditures (as defined by GAAP) resulting from improvements to and major renewals of existing assets.  Such expenditures serve to maintain existing operations but do not generate additional revenues.
(5)   The 2007 period includes $216.5 million in cash contributions to Cameron Highway Oil Pipeline Company ("Cameron Highway") to fund our share of the repayment of its debt obligations.
Based on information currently available, we estimate our consolidated capital spending for the fourth quarter of 2007 will approximate $590.0 million, which includes estimated expenditures of $550.0 million for growth capital projects and acquisitions and $40.0 million for sustaining capital expenditures.  For information regarding selected major growth capital projects, please see "Capital Spending" under Item 7 of the annual report on Form 10-K for the year ended December 31, 2006.
Our forecast of consolidated capital expenditures is based on our strategic operating and growth plans, which are dependent upon our ability to generate the required funds from either operating cash flows or from other means, including borrowings under debt agreements, issuance of equity and potential divestitures of certain assets to third and/or related parties.  Our forecast of capital expenditures may change due to factors beyond our control, such as weather related issues, changes in supplier prices, changes in our estimates or adverse economic conditions.  Furthermore, our forecast may change as a result of decisions made by management at a later date, which may include acquisitions or decisions to take on additional partners.
Our success in raising capital, including the formation of joint ventures to share costs and risks, continues to be a principal factor that determines how much we can spend.  We believe our access to capital resources is sufficient to meet the demands of our current and future operating growth needs, and although we currently intend to make the forecasted expenditures discussed above, we may adjust the timing and amounts of projected expenditures in response to changes in capital markets.
At September 30, 2007, we had $534.0 million in outstanding purchase commitments.  These commitments primarily relate to growth capital projects in the Rocky Mountains that are expected to be
59
placed in service in 2007 and 2008 and the Shenzi Oil Export Pipeline Project, which is expected to be completed in 2009.
Cameron Highway repaid its $365.0 million Series A notes and $50.0 million Series B notes in May and June 2007, respectively, using cash contributions from its partners.  We funded our 50% share of the capital contributions using borrowings under EPO's Multi-Year Revolving Credit Facility.   Cameron Highway incurred an $11.0 million make-whole premium in connection with the repayment of its Series A notes.
Cash outflows related to current and long-term restricted cash amounts increased by $73.3 million period-to-period primarily due to $39.3 million of Petal GO Zone bond proceeds held by a trustee and an increase in cash deposits at a brokerage firm in connection with our commodity hedging activities.  See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding the Petal GO Zone bonds.
Financing activities
.  Cash provided by financing activities was $1.12 billion for the nine months ended September 30, 2007 versus $306.5 million for the same period in 2006.  The following information highlights significant factors that influenced the $816.1 million period-to-period change in cash provided by financing activities:
§
Net borrowings under our consolidated debt agreements increased $1.41 billion period-to-period.  In May 2007, EPO sold $700.0 million in principal amount of fixed/floating unsecured junior subordinated notes (Junior Notes B").  In September 2007, EPO sold $800.0 million in principal amount of fixed-rate unsecured senior notes ("Senior Notes L").   For information regarding our consolidated debt obligations, see Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.
§
Net proceeds from the issuance of our common units decreased $790.2 million period-to-period.  We had underwritten equity offerings in March and September of 2006 that generated net proceeds of $750.8 million reflecting the sale of 31,050,000 common units.
§
Contributions from minority interests increased $279.9 million period-to-period primarily due to the initial public offering of Duncan Energy Partners in February 2007, which generated net proceeds of $290.5 million from the sale of 14,950,000 of its common units.   See "Other Items – Initial Public Offering of Duncan Energy Partners" within this Item 2 for additional information regarding this offering.
§
Cash distributions to our partners increased $95.5 million period-to-period due to an increase in common units outstanding and our quarterly cash distribution rates.
§
We received $48.9 million from the settlement of treasury lock contracts during the nine months ended September 30, 2007 related to our interest rate hedging activities.
Other Items
Initial Public Offering of Duncan Energy Partners
In September 2006, we formed a consolidated subsidiary, Duncan Energy Partners, to acquire, own and operate a diversified portfolio of midstream energy assets.  On February 5, 2007, this subsidiary completed its initial public offering of 14,950,000 common units (including an overallotment amount of 1,950,000 common units) at $21.00 per unit, which generated net proceeds to Duncan Energy Partners of $291.9 million.  As consideration for assets contributed and reimbursement for capital expenditures related to these assets, Duncan Energy Partners distributed $260.6 million of these net proceeds to us along with $198.9 million in borrowings under its credit facility and a final amount of 5,351,571 common units of Duncan Energy Partners. Duncan Energy Partners used $38.5 million of net proceeds from the overallotment to redeem 1,950,000 of the 7,301,571 common units it had originally issued
to Enterprise
60
Products Partners, resulting in a final amount of 5,351,571 common units beneficially owned by Enterprise Products Partners. We used the cash received from Duncan Energy Partners to temporarily reduce amounts outstanding under EPO's Multi-Year Revolving Credit Facility.
For additional information regarding our relationship with Duncan Energy Partners, see Note 12 of the Notes to Unaudited Condensed Consolidated Financial Statements.  We may contribute or sell other equity interests in our subsidiaries to Duncan Energy Partners and use the proceeds we receive from Duncan Energy Partners to fund our capital spending program.  We have no obligation or commitment to make such contributions or sales to Duncan Energy Partners.
Contractual Obligations
With the exception of the debt incurred by Duncan Energy Partners in connection with its initial public offering and the issuances of Junior Notes B and Senior Notes L by EPO, there have been no significant changes in our scheduled maturities of long-term debt since those reported in our annual report on Form 10-K for the year ended December 31, 2006.  See Note 9 of the Notes to the Unaudited Condensed Consolidated Financial Statements under Item 1 of this quarterly report for additional information regarding the debt obligations of Duncan Energy Partners and the issuances of Junior Notes B and Senior Notes L.
There have been no material changes in our operating lease commitments since December 31, 2006, except for the commitments associated with a new natural gas storage lease.  See Note 14 of the Notes to the Unaudited Condensed Consolidated Financial Statements under Item 1 of this quarterly report for additional information regarding the incremental operating lease obligations associated with our new natural gas storage lease agreement.
The following table presents our consolidated debt obligations and related estimates of cash interest payments after giving effect to the debt incurred by Duncan Energy Partners and EPO's issuances of Junior Notes B and Senior Notes L as of September 30, 2007.  In addition, the following table presents the incremental operating lease obligations associated with our new natural gas storage lease (dollars in thousands):
Payment or Settlement due by Period
Less than
1-3
4-5
More than
Contractual Obligations
Total
1 year
years
years
5 years
Scheduled maturities of long-term debt  (1)
$    6,796,568
$              --
$    1,069,068
$    1,270,000
$    4,457,500
Estimated cash payments for interest (2)
$    9,133,378
$    435,093
$       840,517
$       652,263
$    7,205,505
Incremental operating lease obligations
$           7,344
$        4,896
$           2,448
$                 --
$                 --
(1)    Represents payment obligations under our consolidated debt agreements, including those of Duncan Energy Partners as of September 30, 2007.  Amounts presented in the table represent the scheduled future maturities of long-term debt principal for the periods indicated.
(2)    Represents estimates of future cash payments of interest assuming that principal amounts outstanding and the interest rates charged both remain at September 30, 2007 levels.
Off-Balance Sheet Arrangements
In May 2007, we made a $191.0 million cash contribution to Cameron Highway.  This capital contribution, along with an equal amount contributed by our joint venture partner in Cameron Highway, was used by Cameron Highway to repay $365.0 million outstanding under its Series A notes and $14.1 million of related make-whole premiums and accrued interest.  In June 2007, we and our joint venture partner in Cameron Highway made an additional capital contribution of approximately $25.5 million each.  These capital contributions were used by Cameron Highway to repay its Series B notes.  The amount of the repayment was $50.9 million, which included $0.9 million of related make-whole premiums and accrued interest.  As a result of these events, Cameron Highway no longer has any outstanding debt.
61
Apart from the repayment of Cameron Highway's Series A and B notes, there have been no significant changes with regards to our off-balance sheet arrangements since those reported in our annual report on Form 10-K for the year ended December 31, 2006.
Summary of Related Party Transactions
The following table summarizes our related party transactions for the periods indicated (dollars in thousands).
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Revenues from consolidated operations:
EPCO and affiliates
$      91,630
$      47,812
$    164,299
$      86,892
Unconsolidated affiliates
87,209
84,551
215,015
248,980
Total
$    178,839
$    132,363
$    379,314
$    335,872
Operating costs and expenses:
EPCO and affiliates
$      74,910
$      78,570
$    228,264
$    244,632
Unconsolidated affiliates
6,414
4,523
22,628
19,113
Total
$      81,324
$      83,093
$    250,892
$    263,745
General and administrative costs:
EPCO and affiliates
$      11,504
$      10,728
$      45,292
$      32,566
For additional information regarding our related party transactions, see Note 12 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.
We have an extensive and ongoing relationship with EPCO and its affiliates, including TEPPCO and Energy Transfer Equity.  Our revenues from EPCO and affiliates are primarily associated with sales of NGL products.  Our expenses with EPCO and affiliates are primarily due to (i) reimbursements we pay EPCO in connection with an administrative services agreement and (ii) purchases of NGL products.  TEPPCO is an affiliate of ours due to the common control relationship of both entities.  Enterprise GP Holdings acquired non-controlling ownership interests in both ETE GP and Energy Transfer Equity in May 2007.  As a result of this transaction, ETE GP and Energy Transfer Equity became related parties to us.
Many of our unconsolidated affiliates perform supporting or complementary roles to our consolidated business operations.  The majority of our revenues from unconsolidated affiliates relate to natural gas sales to a Louisiana affiliate.  The majority of our expenses with unconsolidated affiliates pertain to payments we make to K/D/S Promix, L.L.C. for NGL transportation, storage and fractionation services.
On February 5, 2007, our consolidated subsidiary, Duncan Energy Partners, completed an underwritten initial public offering of its common units.  Duncan Energy Partners was formed in September 2006 as a Delaware limited partnership to, among other things, acquire ownership interests in certain of our midstream energy businesses.  For additional information regarding Duncan Energy Partners, see "Other Items – Initial Public Offering of Duncan Energy Partners" within this section.
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Non-GAAP reconciliations
A reconciliation of our measurement of total non-GAAP gross operating margin to GAAP operating income and income before provision for income taxes, minority interest and the cumulative effect of change in accounting principle follows (dollars in thousands):
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Total segment gross operating margin
$    363,721
$    399,741
$    1,061,568
$    1,022,888
Adjustments to reconcile total segment gross operating margin
to operating income:
Depreciation, amortization and accretion in operating costs and expenses
(133,869)
(112,412)
(374,522)
(325,180)
Operating lease expense paid by EPCO
(526)
(526)
(1,579)
(1,582)
Loss (gain) on sale of assets in operating costs and expenses
219
3,204
(5,445)
3,401
General and administrative costs
(18,715)
(15,823)
(66,706)
(45,798)
Consolidated operating income
210,830
274,184
613,316
653,729
Other expense, net
(83,369)
(60,657)
(213,327)
(169,705)
Income before provision for income taxes, minority interest
and cumulative effect of change in accounting principle
$    127,461
$    213,527
$       399,989
$       484,024
EPCO subleases to us certain equipment located at our Mont Belvieu facility and 100 railcars for $1 per year (the "retained leases").  These subleases are part of the administrative services agreement that we executed with EPCO in connection with our formation in 1998.  EPCO holds this equipment pursuant to operating leases for which it has retained the corresponding cash lease payment obligation.  We record the full value of such lease payments made by EPCO as a non-cash related party operating expense, with the offset to partners' equity recorded as a general contribution to our partnership.  Apart from the partnership interests we granted to EPCO at our formation, EPCO does not receive any additional ownership rights as a result of its contribution to us of the retained leases.
Cumulative effect of change in accounting principle
Net income for the first quarter of 2006 includes a non-cash benefit of $1.5 million related to the cumulative effect of a change in accounting principle resulting from our adoption of SFAS 123(R) on January 1, 2006.
Recent Accounting Pronouncements
The accounting standard setting bodies and the SEC have recently issued the following accounting guidance that will or may affect our financial statements:
§
SFAS 157, "Fair Value Measurements," and
§
SFAS 159, "Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of FASB Statement No. 115."
For additional information regarding these recent accounting developments and others that may affect our future financial statements, see Note 2 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report.
Amendment to Enterprise Products GP Limited Liability Company Agreement
On November 7, 2007, Enterprise Products GP amended and restated its limited liability company agreement to provide, among other things, that:
§
to the fullest extent permitted by law, any action (or inaction) taken (or omitted) by its independent directors consistent with our Partnership Agreement shall be permitted and deemed approved by Enterprise GP Holdings, the sole member of our general partner, and shall not
63
constitute a breach of Enterprise Products GP's limited liability company agreement, our Partnership Agreement or of any duty stated or implied by law or equity; and
§
the duties and obligations that Enterprise Products GP's officers and directors owe to us are limited as set forth in our Partnership Agreement.
Pipeline Integrity Costs
Our NGL, petrochemical and natural gas pipelines are subject to pipeline safety programs administered by the U.S. Department of Transportation, through its Office of Pipeline Safety.  The following table summarizes our pipeline integrity costs for the periods indicated (dollars in thousands):
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2007
2006
2007
2006
Pipeline Integrity Costs
Operating Expense
$    11,315
$      7,097
$    34,987
$    21,389
Capitalized
15,679
15,539
41,543
32,894
Total
$    26,994
$    22,636
$    76,530
$    54,283
We expect our net cash outlay for pipeline integrity program expenditures to approximate $15.6 million for the remainder of 2007.  Our forecast is net of certain costs we recovered from El Paso in connection with an indemnification agreement.  During the second and third quarter of 2007, we received $30.9 million and $0.2 million, respectively, from El Paso related to our 2006 expenditures.  During the second quarter of 2007 we reached the maximum amount reimbursable under the indemnification agreement.  We billed and received a final amount of $5.4 million from El Paso for 2007 pipeline integrity costs during October 2007.
Item 3.
Quantitative and Qualitative Disclosures about Market Risk.
We are exposed to financial market risks, including changes in commodity prices and interest rates.  In addition, we are exposed to fluctuations in exchange rates between the U.S. dollar and Canadian dollar.  We may use financial instruments (i.e., futures, forwards, swaps, options and other financial instruments with similar characteristics) to mitigate the risks of certain identifiable and anticipated transactions.  In general, the types of risks we attempt to hedge are those related to (i) the variability of future earnings, (ii) fair values of certain debt instruments and (iii) cash flows resulting from changes in applicable interest rates, commodity prices or exchange rates.  As a matter of policy, we do not use financial instruments for speculative (or "trading") purposes.
Interest Rate Risk Hedging Program
Our interest rate exposure results from variable and fixed rate borrowings under various debt agreements.  We manage a portion of our interest rate exposures by utilizing interest rate swaps and similar arrangements, which allow us to convert a portion of fixed rate debt into variable rate debt or a portion of variable rate debt into fixed rate debt.  The following information summarizes significant components of our interest rate risk hedging portfolio:
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Fair value hedges – Interest rate swaps
As summarized in the following table, we had eleven interest rate swap agreements outstanding at September 30, 2007 that were accounted for as fair value hedges.
Number
Period Covered
Termination
Fixed to
Notional
Hedged Fixed Rate Debt
Of Swaps
by Swap
Date of Swap
Variable Rate
(1)
Amount
Senior Notes B, 7.50% fixed rate, due Feb. 2011
1
Jan. 2004 to Feb. 2011
Feb. 2011
7.50%  to 8.65%
$50 million
Senior Notes C, 6.375% fixed rate, due Feb. 2013
2
Jan. 2004 to Feb. 2013
Feb. 2013
6.38%  to 7.19%
$200 million
Senior Notes G, 5.6% fixed rate, due Oct. 2014
6
4th Qtr. 2004 to Oct. 2014
Oct. 2014
5.60%  to 6.30%
$600 million
Senior Notes K, 4.95% fixed rate, due June 2010
2
Aug. 2005 to June 2010
June 2010
4.95%  to 5.80%
$200 million
(1)  The variable rate indicated is the all-in variable rate for the current settlement period.
The total fair value of these eleven interest rate swaps at September 30, 2007 and December 31, 2006, was a liability of $19.7 million and $29.1 million, respectively, with an offsetting decrease in the fair value of the underlying debt.  Interest expense for the three months ended September 30, 2007 and 2006 includes losses of $2.3 million and $1.9 million from these swap agreements, respectively.  For the nine months ended September 30, 2007 and 2006, interest expense includes losses of $6.9 million and $2.8 million, respectively, from these swap agreements.
The following table shows the effect of hypothetical price movements on the estimated fair value of our interest rate swap portfolio and the related change in fair value of the underlying debt at the dates indicated (dollars in thousands).  Income is not affected by changes in the fair value of these swaps; however, these swaps effectively convert the hedged portion of fixed-rate debt to variable-rate debt.  As a result, interest expense (and related cash outlays for debt service) will increase or decrease with the change in the periodic "reset" rate associated with the respective swap.  Typically, the reset rate is an agreed upon index rate published for the first day of the six-month interest calculation period.
Resulting
Swap Fair Value at
Scenario
Classification
September 30, 2007
October 29, 2007
FV assuming no change in underlying interest rates
Liability
$    (19,720)
$    (10,710)
FV assuming 10% increase in underlying interest rates
Liability
$    (44,353)
$    (33,049)
FV assuming 10% decrease in underlying interest rates
Asset
$         4,914
$       11,629
Cash flow hedges – Treasury locks
At times, we may use treasury lock financial instruments to hedge the underlying U.S. treasury rates related to our anticipated issuances of debt. Gains or losses on the termination of such instruments are amortized to earnings using the effective interest method over the estimated term of the underlying fixed-rate debt.  The following table summarizes changes in our treasury lock portfolio since December 31, 2006 (dollars in millions):
Notional
Cash
Amount
Gain (Loss)
Treasury lock portfolio, December 31, 2006 (1)
$    562.5
$        --
First quarter of 2007 additions to portfolio (1)
437.5
--
Second quarter of 2007 terminations (2)
(875.0)
42.3
Third quarter of 2007 additions to portfolio (3)
875.0
--
Third quarter of 2007 terminations (4)
(750.0)
6.6
Treasury lock portfolio, September 30, 2007 (5)
$    250.0
$    48.9
(1)    EPO entered into these transactions related to its anticipated issuances of debt in 2007.
(2)    Terminations relate to the issuance of the Junior Notes B ($500.0 million) and Senior Notes L ($375.0 million).  Of the $42.3 million gain, $10.6 million relates to the Junior Notes B and the remainder to the Senior Notes L and its successor debt.
(3)    EPO entered into these transactions related to its issuance of the Senior Notes L (including its successor debt) in August 2007 ($500.0 million) and anticipated issuance of debt during the first half of 2008 ($250.0 million)
(4)    Terminations relate to the issuance of the Senior Notes L and its successor debt.
(5)    The fair value of these financial instruments at September 30, 2007 was $2.9 million.
65
Since September 30, 2007, we have executed an additional $350.0 million in notional amount of treasury lock financial instruments.
Commodity Risk Hedging Program
The prices of natural gas, NGLs and certain petrochemical products are subject to fluctuations in response to changes in supply, market uncertainty and a variety of additional factors that are beyond our control.  In order to manage the price risks associated with such products, we may enter into commodity financial instruments.
The primary purpose of our commodity risk management activities is to hedge our exposure to price risks associated with (i) natural gas purchases, (ii) the value of NGL production and inventories, (iii) related firm commitments, (iv) fluctuations in transportation revenues where the underlying fees are based on natural gas index prices and (v) certain anticipated transactions involving either natural gas, NGLs or certain petrochemical products.  From time to time, we inject natural gas into storage and utilize hedging instruments to lock in the value of our inventory positions.  The commodity financial instruments we utilize may be settled in cash or with another financial instrument.
At September 30, 2007 and December 31, 2006, we had a limited number of commodity financial instruments in our portfolio, which primarily consisted of cash flow hedges.  The fair value of our commodity financial instrument portfolio at September 30, 2007 and December 31, 2006 was a liability of $23.4 million and $3.2 million, respectively.  During the three months ended September 30, 2007 and 2006, we recorded an expense of $10.5 million and an income of $7.8 million, respectively, related to our commodity financial instruments.  During the nine months ended September 30, 2007 and 2006, we recorded an expense of $11.9 million and income $2.4 million, respectively, related to our commodity financial instruments.
We assess the risk of our commodity financial instrument portfolio using a sensitivity analysis model.  The sensitivity analysis applied to this portfolio measures the potential income or loss (i.e., the change in fair value of the portfolio) based upon a hypothetical 10% movement in the underlying quoted market prices of the commodity financial instruments outstanding at the date indicated within the following table.  The following table shows the effect of hypothetical price movements on the estimated fair value ("FV") of this portfolio at the dates presented (dollars in thousands):
Resulting
Commodity Financial Instrument Portfolio FV
Scenario
Classification
September 30, 2007
October 29, 2007
FV assuming no change in underlying commodity prices
Liability
$    (23,392)
$    (21,765)
FV assuming 10% increase in underlying commodity prices
Liability
$    (10,839)
$    (12,724)
FV assuming 10% decrease in underlying commodity prices
Liability
$    (35,945)
$    (30,805)
Foreign Currency Hedging Program
We own an NGL marketing business located in Canada and have entered into construction agreements where payments are indexed to the Canadian dollar.  As a result, we could be adversely affected by fluctuations in the foreign currency exchange rate between the U.S. dollar and the Canadian dollar. We attempt to hedge this risk using foreign exchange purchase contracts to fix the exchange rate.  We use mark-to-market accounting for those foreign exchange contracts associated with our Canadian NGL marketing business.  The duration of these contracts is typically one month.  At September 30, 2007, $1.1 million of these exchange contracts were outstanding, all of which expired in October 2007.  The foreign exchange contracts associated with our construction activities are accounted for using hedge accounting.  At September 30, 2007, the fair value of these contracts was $2.9 million.  These
contracts settle through May 2008.
66
Item 4.
Controls and Procedures
.
Our management, with the participation of the chief executive officer ("CEO") and chief financial officer ("CFO") of Enterprise Products GP, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report.  Based on their evaluation, the CEO and CFO of Enterprise Products GP have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e)) are effective at a reasonable assurance level.
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, including to ensure that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.  Our management does not expect that our disclosure controls and procedures will prevent all errors and all fraud.  Based on the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.
The certifications of our general partner's CEO and CFO required under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 have been included as exhibits to this quarterly report on Form 10-Q.
PART II.  OTHER INFORMATION.
Item 1.
Legal Proceedings
.
See Part I, Item 1, Financial Statements, Note 14, "Commitments and Contingencies – Litigation," of the Notes to Unaudited Condensed Consolidated Financial Statements included under Item 1 of this quarterly report, which is incorporated herein by reference.
Item 1A.
Risk Factors
.
In general, there have been no significant changes in our risk factors since December 31, 2006 other than the risk factor noted below.  For a detailed discussion of our risk factors, please read, Item 1A "Risk Factors," in our annual report on Form 10-K for 2006.
Tax Risks to Common Unitholders
We have adopted certain methodologies that may result in a shift of income, gain, loss and deduction between the general partner and the unitholders. The Internal Revenue Service ("IRS") may challenge this treatment, which could adversely affect the value of our common units.
When we issue additional units or engage in certain other transactions, we determine the fair market value of our assets and allocate any unrealized gain or loss attributable to our assets to the capital accounts of our unitholders and our general partner. Our methodology may be viewed as understating the value of our assets. In that case, there may be a shift of income, gain, loss and deduction between certain unitholders and the general partner, which may be unfavorable to such unitholders. Moreover, under this methodology, subsequent purchasers of common units may have a greater portion of their Internal Revenue Code Section 743(b) adjustment allocated to our tangible assets and a lesser portion allocated to our intangible assets. The IRS may challenge our methods, or our allocation of the Section 743(b) adjustment attributable to our tangible and intangible assets, and
allocations of income, gain, loss and deduction between the general partner and certain of our unitholders.
67
A successful IRS challenge to these methods or allocations could adversely affect the amount of taxable income or loss being allocated to our unitholders. It also could affect the amount of gain from our unitholders' sale of common units and could have a negative impact on the value of the common units or result in audit adjustments to our unitholders' tax returns without the benefit of additional deductions.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
.
We did not repurchase any of our common units during the three and nine months ended September 30, 2007.  As of September 30, 2007, we and our affiliates are authorized to repurchase up to 618,400 common units under the December 1998 common unit repurchase program.
Item 3.
Defaults Upon Senior Securities
.
None.
Item 4.
Submission of Matters to a Vote of Security Holders
.
None.
Item 5.
Other Information
.
None.
Item 6.
Exhibits
.
Exhibit Number
Exhibit*
2.1
Merger Agreement, dated as of December 15, 2003, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products Management LLC, GulfTerra Energy Partners, L.P. and GulfTerra Energy Company, L.L.C. (incorporated by reference to Exhibit 2.1 to Form 8-K filed December 15, 2003).
2.2
Amendment No. 1 to Merger Agreement, dated as of August 31, 2004, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products Management LLC, GulfTerra Energy Partners, L.P. and GulfTerra Energy Company, L.L.C. (incorporated by reference to Exhibit 2.1 to Form 8-K filed September 7, 2004).
2.3
Parent Company Agreement, dated as of December 15, 2003, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products GTM, LLC, El Paso Corporation, Sabine River Investors I, L.L.C., Sabine River Investors II, L.L.C., El Paso EPN Investments, L.L.C. and GulfTerra GP Holding Company (incorporated by reference to Exhibit 2.2 to Form 8-K filed December 15, 2003).
2.4
Amendment No. 1 to Parent Company Agreement, dated as of April 19, 2004, by and among Enterprise Products Partners L.P., Enterprise Products GP, LLC, Enterprise Products GTM, LLC, El Paso Corporation, Sabine River Investors I, L.L.C., Sabine River Investors II, L.L.C., El Paso EPN Investments, L.L.C. and GulfTerra GP Holding Company (incorporated by reference to Exhibit 2.1 to the Form 8-K filed April 21, 2004).
2.5
Purchase and Sale Agreement (Gas Plants), dated as of December 15, 2003, by and between El Paso Corporation, El Paso Field Services Management, Inc., El Paso Transmission, L.L.C., El Paso Field Services Holding Company and Enterprise Products Operating L.P. (incorporated by reference to Exhibit 2.4 to Form 8-K filed December 15, 2003).
3.1
Fifth Amended and Restated Agreement of Limited Partnership of Enterprise Products Partners L.P., dated effective as of August 8, 2005 (incorporated by reference to Exhibit 3.1 to Form 8-K filed August 10, 2005).
3.2#
Fifth Amended and Restated Limited Liability Company Agreement of Enterprise Products GP, LLC, dated as of November 7, 2007.
68
3.3
Limited Liability Company Agreement of Enterprise Products Operating LLC dated as of June 30, 2007 (incorporated by reference to Exhibit 3.3 to Form 10-Q filed on August 8, 2007).
3.4
Certificate of Incorporation of Enterprise Products OLPGP, Inc., dated December 3, 2003 (incorporated by reference to Exhibit 3.5 to Form S-4 Registration Statement, Reg. No. 333-121665, filed December 27, 2004).
3.5
Bylaws of Enterprise Products OLPGP, Inc., dated December 8, 2003 (incorporated by reference to Exhibit 3.6 to Form S-4 Registration Statement, Reg. No. 333-121665, filed December 27, 2004).
3.6#
Certificate of Limited Partnership of Enterprise Products Partners L.P.
4.1
Indenture dated as of March 15, 2000, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and First Union National Bank, as Trustee (incorporated by reference to Exhibit 4.1 to Form 8-K filed March 10, 2000).
4.2
First Supplemental Indenture dated as of January 22, 2003, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Registration Statement on Form S-4, Reg. No. 333-102776, filed January 28, 2003).
4.3
Second Supplemental Indenture dated as of February 14, 2003, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to Form 10-K filed March 31, 2003).
4.4
Third Supplemental Indenture dated as of June 30, 2007, among Enterprise Products Operating LLC, as Issuer, Enterprise Products Partners L.P., as Guarantor, and U.S. Bank National Association, as successor Trustee (incorporated by reference to Exhibit 4.55 to Form 10-Q filed on August 8, 2007) .
4.5
Form of Common Unit certificate (incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-1/A; File No. 333-52537, filed July 21, 1998).
4.6
$750 Million Multi-Year Revolving Credit Agreement dated as of August 25, 2004, among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents, and Mizuho Corporate Bank, Ltd., SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.1 to Form 8-K filed on August 30, 2004).
4.7
First Amendment dated October 5, 2005, to Multi-Year Revolving Credit Agreement dated as of August 25, 2004, among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as CO-Syndication Agents, and Mizuho Corporate Bank, Ltd., SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.3 to Form 8-K filed on October 7, 2005).
4.8
Second Amendment dated June 22, 2006, to Multi-Year Revolving Credit Agreement dated as of August 25, 2004 among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents and Mizuho Corporate Bank, LTD., SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.6 to Form 10-Q filed August 8, 2006).
4.9
Third Amendment dated January 5, 2007, to Multi-Year Revolving Credit Agreement dated as of August 25, 2004 among Enterprise Products Operating L.P., the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents and Mizuho Corporate Bank, LTD, SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents. (incorporated by reference to Exhibit 4.47 to Form 10-K filed February 28, 2006).
4.10
Fourth Amendment dated June 30, 2007, to Multi-Year Revolving Credit Agreement dated as of August 25, 2004 among Enterprise Products Operating LLC, the Lenders party thereto, Wachovia Bank, National Association, as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, as Co-Syndication Agents and Mizuho Corporate Bank, LTD, SunTrust Bank and The Bank of Nova Scotia, as Co-Documentation Agents (incorporated by reference to Exhibit 4.56 to Form 10-Q filed on August 8, 2007).
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4.11
Guaranty Agreement dated as of August 25, 2004, by Enterprise Products Partners L.P. in favor of Wachovia Bank, National Association, as Administrative Agent for the several lenders that are or become parties to the Credit Agreement included as Exhibit 4.6, above (incorporated by reference to Exhibit 4.2 to Form 8-K filed on August 30, 2004).
4.12
Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to Form 8-K filed on October 6, 2004).
4.13
First Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K filed on October 6, 2004).
4.14
Second Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to Form 8-K filed on October 6, 2004).
4.15
Third Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.4 to Form 8-K filed on October 6, 2004).
4.16
Fourth Supplemental Indenture dated as of October 4, 2004, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.5 to Form 8-K filed on October 6, 2004).
4.17
Fifth Supplemental Indenture dated as of March 2, 2005, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K filed on March 3, 2005).
4.18
Sixth Supplemental Indenture dated as of March 2, 2005, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to Form 8-K filed on March 3, 2005).
4.19
Seventh Supplemental Indenture dated as of June 1, 2005, among Enterprise Products Operating L.P., as Issuer, Enterprise Products Partners L.P., as Guarantor, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.46 to Form 10-Q filed November 4, 2005).
4.20
Eighth Supplemental Indenture dated as of July 18, 2006 to Indenture dated October 4, 2004 among Enterprise Products Operating L.P., as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to exhibit 4.2 to Form 8-K filed July 19, 2006).
4.21
Ninth Supplemental Indenture, dated as of May 24, 2007, by and among Enterprise Products Operating L.P., as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed by Enterprise Products Partners L.P. on May 24, 2007).
4.22
Tenth Supplemental Indenture, dated as of June 30, 2007, by and among Enterprise Products Operating LLC, as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.54 to Form 10-Q filed August 8, 2007).
4.23
Eleventh Supplemental Indenture, dated as of September 4, 2007, by and among Enterprise Products Operating LLC, as issuer, Enterprise Products Partners L.P., as parent guarantor, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.3 to Form 8-K filed on September 5, 2007).
4.24
Global Note representing $350 million principal amount of 6.375% Series B Senior Notes due 2013 with attached Guarantee (incorporated by reference to Exhibit 4.4 to Registration Statement on Form S-4, Reg. No. 333-102776, filed January 28, 2003).
4.25
Global Note representing $500 million principal amount of 6.875% Series B Senior Notes due 2033 with attached Guarantee (incorporated by reference to Exhibit 4.8 to Form 10-K filed March
70
31, 2003).
4.26
Global Notes representing $450 million principal amount of 7.50% Senior Notes due 2011 (incorporated by reference to Exhibit 4.1 to Form 8-K filed January 25, 2001).
4.27
Global Note representing $500 million principal amount of 4.000% Series B Senior Notes due 2007 with attached Guarantee (incorporated by reference to Exhibit 4.14 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).
4.28
Global Note representing $500 million principal amount of 5.600% Series B Senior Notes due 2014 with attached Guarantee (incorporated by reference to Exhibit 4.17 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).
4.29
Global Note representing $150 million principal amount of 5.600% Series B Senior Notes due 2014 with attached Guarantee (incorporated by reference to Exhibit 4.18 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).
4.30
Global Note representing $350 million principal amount of 6.650% Series B Senior Notes due 2034 with attached Guarantee (incorporated by reference to Exhibit 4.19 to Form S-3 Registration Statement Reg. No. 333-123150 filed on March 4, 2005).
4.31
Global Note representing $500 million principal amount of 4.625% Series B Senior Notes due 2009 with attached Guarantee (incorporated by reference to Exhibit 4.27 to Form 10-K for the year ended December 31, 2004 filed on March 15, 2005).
4.32
Global Note representing $250,000,000 principal amount of 5.00% Series B Senior Notes due 2015 with attached Guarantee (incorporated by reference to Exhibit 4.31 to Form 10-Q filed on November 4, 2005).
4.33
Global Note representing $250,000,000 principal amount of 5.75% Series B Senior Notes due 2035 with attached Guarantee (incorporated by reference to Exhibit 4.32 to Form 10-Q filed on November 4, 2005).
4.34
Global Note representing $500,000,000 principal amount of 4.95% Senior Notes due 2010 with attached Guarantee (incorporated by reference to Exhibit 4.47 to Form 10-Q filed November 4, 2005).
4.35
Amended and Restated Credit Agreement dated as of June 29, 2005, among Cameron Highway Oil Pipeline Company, the Lenders party thereto, and SunTrust Bank, as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 4.1 to Form 8-K filed on July 1, 2005).
4.36
Form of Junior Note, including Guarantee (incorporated by reference to Exhibit 4.3 to Form 8-K file July 19, 2006).
4.37
Purchase Agreement, dated as of July 12, 2006 between Cerrito Gathering Company, Ltd., Cerrito Gas Marketing, Ltd., Encinal Gathering, Ltd., as Sellers, Lewis Energy Group, L.P. as Guarantor, and Enterprise Products Partners L.P., as buyer (incorporated by reference to Exhibit 4.6 to Form 10-Q filed August 8, 2006).
4.38#
Global Note representing $800,000,000 principal amount of 6.30% Senior Notes due 2017 with attached Guarantee.
10.1#***
Enterprise Products 1998 Long-Term Incentive Plan, amended and restated as of November 9 2007.
10.2#***
Form of Option Grant Award under Enterprise Products 1998 Long-Term Incentive Plan.
10.3#***
Form of Restricted Unit Grant under the Enterprise Products 1998 Long-Term Incentive Plan.
31.1#
Sarbanes-Oxley Section 302 certification of Michael A. Creel for Enterprise Products Partners L.P. for the September 30, 2007 quarterly report on Form 10-Q.
31.2#
Sarbanes-Oxley Section 302 certification of W. Randall Fowler for Enterprise Products Partners L.P. for the September 30, 2007 quarterly report on Form 10-Q.
32.1#
Section 1350 certification of Michael A. Creel for the September 30, 2007 quarterly report on Form 10-Q.
32.2#
Section 1350 certification of W. Randall Fowler for the September 30, 2007 quarterly report on Form 10-Q.
*
With respect to any exhibits incorporated by reference to any Exchange Act filings, the Commission file number for Enterprise Products Partners L.P. is 1-14323; Enterprise GP Holdings L.P., 1-32610; and Duncan Energy Partners L.P., 1-33266.
***
Identifies management contract and compensatory plan arrangement.
#
Filed with this report.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized, in the City of Houston, State of Texas on November 9, 2007.
ENTERPRISE PRODUCTS PARTNERS L.P.
(A Delaware Limited Partnership)
By:
Enterprise Products GP, LLC,
as General Partner
By:
___/s/ Michael J. Knesek___________________
Name:
Michael J. Knesek
Title:
Senior Vice President, Controller
and Principal Accounting Officer
of the general partner
72