NGL Pipelines Overview

Enterprise owns interests in 15,725 miles of NGL pipelines, 157.4 million barrels of working capacity of NGL and related product storage and two import/export facilities. These NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing plants to fractionation plants, petrochemical plants and refineries; 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 products transported by our NGL pipelines and the associated commodity price risk.

Enterprise's most significant NGL pipelines are the Mid-America and Seminole pipeline systems which total 9,150 miles. The Mid-America system covers thirteen states and is a regulated NGL pipeline system consisting of three NGL pipelines: the 2,785-mile Rocky Mountain pipeline, the 2,771-mile Conway North pipeline and the 2,252-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 NGL 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 to and from Conway to the Hobbs hub.  The Mid-America Pipeline System interconnects with our Seminole Pipeline and Hobbs NGL fractionator and storage facility at the Hobbs hub.

During 2008, approximately 52% of the volumes transported on the Mid-America Pipeline System were mixed NGLs originating from natural gas processing plants located in the Permian Basin in west Texas, the Hugoton Basin of southwestern Kansas, the San Juan Basin of northwest New Mexico, the Piceance Basin of Colorado, the Uintah Basin of Colorado and Utah and the Greater Green River Basin of southwestern Wyoming.

The Seminole pipeline is a regulated pipeline that transports NGLs from the Hobbs hub and the Permian Basin area of west Texas to markets in southeastern Texas. The primary source of throughput for Seminole is the volume originating from the Mid-America Pipeline system.

                The following table summarizes the significant NGL pipelines and related storage assets of our NGL Pipelines & Services business segment at February 2, 2009. 

(1) We acquired the remaining 25.8% ownership interest in this system during August 2008 and now own 100% of the Dixie Pipeline through our subsidiary, Dixie Pipeline Company.

 (2) We hold a 90% interest in this system through a majority owned subsidiary, Seminole Pipeline Company.

(3) The Chaparral NGL system includes the 180-mile Quanah Pipeline.  The Quanah Pipeline begins in Sutton County, Texas and connects to the Chaparral Pipeline near Midland, Texas.

(4) Reflects consolidated ownership of these systems by EPO (34%) and Duncan Energy Partners (66%).

 (5) Of the 612 total miles for this system, we own 100% of 559 miles and 52.5% of the remaining 53 miles.

(6) Our ownership interest in this pipeline is held indirectly through our equity method investment in Skelly-Belvieu Pipeline Company, which we acquired in December 2008.

(7) Includes our Tri-States, Belle Rose, Wilprise, Chunchula, Bay Area and South Dean pipelines located in the coastal regions of Alabama, Louisiana, Mississippi and Texas; Panola and San Jacinto located in East Texas; and our Meeker pipeline in Colorado.