NGL Pipelines Overview

Enterprise owns interests in 12,774 miles of NGL pipelines and 157 million barrels of NGL and petrochemical storage capacity. These NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing plants to fractionation facilities; distribute and receive NGL products to and from petrochemical plants and refineries; and deliver propane to customers along the Dixie pipeline and certain sections of the Mid-America Pipeline System. Our pipelines provide transportation services to customers on a fee basis; therefore, the gross operating margin for this business is generally dependent upon the volume of product transported and the level of fees charged to customers. Typically, our pipeline customers retain title to the NGL products and the associated commodity price risk.

Enterprise's most significant NGL pipelines are the Mid-America and Seminole pipeline systems which total 8,507 miles. The Mid-America system is a regulated NGL pipeline system consisting of three NGL pipelines: the 2,548-mile Rocky Mountain pipeline, the 2,740-mile Conway North pipeline and the 1,938-mile Conway South pipeline.

The Rocky Mountain section of the pipeline transports mixed NGLs from the Rocky Mountain Overthrust and San Juan Basin areas to the Hobbs hub Located on the Texas-New Mexico border. The Conway North segment links the large NGL hub at Conway, Kansas to refineries, petrochemical plants and propane markets in the upper Midwest. In addition, the Conway North segment has access to NGL supplies from Canada's Western Sedimentary basin through connections with third-party pipelines. The Conway South pipeline connects the Conway hub with Kansas refineries and transports NGLs from Conway to the Hobbs hub where the Mid-America system interconnects with the Seminole pipeline system.

The Seminole pipeline is a regulated pipeline that transports mixed NGLs and NGL products from the Hobbs hub and the Permian Basin area to Mont Belvieu. The primary source of throughput for Seminole is the volume originating from the Mid-America system. In general, mixed NGLs transported on the Seminole pipeline are transported to fractionation facilities in Mont Belvieu for separation and ultimate consumption by petrochemical customers and motor gasoline producers on the Texas Gulf Coast.

Because of strong drilling activity and increasing production of rich natural gas and associated NGLs in the Pinedale, Piceance and San Juan basins, our Mid-America system is operating near full capacity and NGLs that are dedicated to the partnership or our NGL fractionator at Mont Belvieu continue to exceed our capacity. As a result, we have begun two expansion projects to increase our capacity.

Enterprise's proposed Western Expansion Project would increase the capacity of the Rocky Mountain segment of the Mid-America pipeline system to 275 MBPD from its current capacity of 225 MBPD. A draft environmental assessment and plan of development has been submitted to the regulatory agencies and construction could begin as early as the fourth quarter of 2005 depending on the timing of required permits and regulatory approvals.

Earlier this year, the partnership began construction to expand its NGL fractionator at Mont Belvieu to facilitate the increase in NGLs from the Rocky Mountain area. This $34 million expansion project, which is expected to be completed in the first quarter of 2006, will increase our fractionation capacity by 15 MBPD from the fractionator's current capacity of 210 MBPD, and will also reduce the facility's energy costs. With respect to the Western Expansion Project, we are also evaluating a project to build a new NGL fractionator at our Mont Belvieu complex that could increase the facility's fractionation capacity by an additional 60 MBPD to accommodate the expected increase in NGL production from the Rocky Mountain region.

In February 2005, we announced that we acquired an additional 46% interest in the Dixie Pipeline Company in 2 separate transactions totaling $71 million. In December 2006, we acquired an additional 8.3% interest in Dixie, taking Enterprise ownership in Dixie up to 74%. Dixie Pipeline Company owns and operates the Dixie Pipeline, a 1,300-mile propane pipeline that transports over 100 MBPD of propane from Mont Belvieu and 9 other receipt points to markets at its eastern termination points in North Carolina and Georgia, as well as 7 intermediate delivery terminals.

Facility	Ownership Interest	Miles	Operator	Function
NGL Pipelines
Mid-America Pipeline System	100.0%⁽¹⁾	7,226	Enterprise	Transports mixed NGLs produced from over 20 natural gas processing plants in Wyoming, Utah, Colorado and New Mexico to the Seminole pipeline in West Texas.
Dixie Pipeline	74.2%⁽²⁾	1,301	Dixie	Transports propane from fractionators and refineries in Texas, Louisiana, and Mississippi to customers throughout the Southeast.
Seminole Pipeline	90.0%⁽¹⁾	1,281	Enterprise	Transports mixed NGLs and NGL products received from the Mid-America pipeline in West Texas and from pipelines and processing plants in the Permian basin to the large NGL markets at Mont Belvieu, Texas and the Texas Gulf Coast.
Texas NGL System⁽³⁾	100%	1,039	Enterprise	Gathering and transportation pipelines that deliver mixed NGLs to fractionators and NGL products to refineries and petrochemical plants located along the Texas Gulf Coast.
Louisiana Pipeline System	Various⁽⁴⁾	655	Enterprise and Equilon⁽⁵⁾	Gathering and transportation pipelines that deliver mixed NGLs to fractionators and NGL products to refineries and petrochemical plants located along the Gulf Coast.
Promix Pipeline System⁽⁶⁾	50.0%	410	Enterprise	Gathers mixed NGLs from 12 natural gas processing plants in Louisiana.
Lou-Tex NGL Pipeline	100%	206	Enterprise	Transports NGL products and refinery grade propylene between Louisiana and Texas; and transports mixed NGLs from Louisiana gas processing facilities to the Mont Belvieu, Texas NGL fractionation facility.
Houston Ship Channel Pipeline System	100%	266	Enterprise	Bi-directional system comprised of 6 pipelines from Enterprise's Mont Belvieu complex to refineries and petrochemical customers along the Houston Ship Channel. Also serves import/export facilities.
Tri-States Pipeline	66.7%	169	BP	Transports y-grade from processing plants in Alabama and Mississippi to Baton Rouge, Louisiana and Promix NGL fractionators.
Chunchula Pipeline	100%	143	Enterprise	Transports y-grade from Florida and Alabama to the Petal fractionator.
Wilprise Pipeline	74.7%	30	Enterprise	Transports y-grade from Tri-States pipeline to the Baton Rouge fractionator.
Belle Rose Pipeline	41.7%	48	Enterprise	Transports y-grade from Tri-States Pipeline to the Promix fractionator.

⁽¹⁾ We exercised our option to acquire from an affiliate of Williams Companies, Inc. an additional 2% ownership interest in the Mid-America Pipeline and a 1.6% ownership interest in the Seminole Pipeline in June 2005. ⁽²⁾ We acquired an additional 46.1% ownership interest in Dixie from ConocoPhillips (20%) and ChevronTexaco (26.1%) in January and February 2005, respectively. Put the corresponding "(2) after the percentage for the Dixie Pipeline. ⁽³⁾ Acquired as a result of the GulfTerra Merger on September 30, 2004. ⁽⁴⁾ Of the 655 total miles for this system, we own 100% of 559 miles; 32.2% of 43 miles; and 44.3% of the remaining 53 miles. ⁽⁵⁾ Enterprise operates 233 miles of the system, and Equilon operates the remainder. ⁽⁶⁾ The Promix gathering pipeline is an integral component of the NGL fractionation activities of Promix. We acquired an additional 16.7% ownership interest in Promix from Koch in December 2004. ⁽⁷⁾ We acquired an additional 16.7% ownership interest in Tri-States from Koch in April 2004.