NGL Storage

Our NGL and related product storage facilities are integral parts of our operations used for the storage of products owned by us and our customers. In general, our underground salt dome storage caverns (or wells) are used to store mixed NGLs and purity NGL, petrochemical and refined products. We collect storage revenues under our NGL and related product storage contracts based on the number of days a customer has volumes in storage multiplied by a storage rate (as defined in each contract). With respect to capacity reservation agreements, we collect a fee for reserving storage capacity for certain customers in our underground storage wells. The customers pay reservation fees based on the level of storage capacity reserved rather than the actual volume stored. When a customer exceeds its reserved capacity, we charge those customers an excess storage fee. In addition, we generally charge our customers throughput fees based on volumes delivered into and later withdrawn from storage. As a result, our profitability is dependent upon the level of storage capacity reserved by our customers, the volume of product delivered into and withdrawn from our underground caverns and the level of fees charged.

We operate our storage operations based on the needs and requirements of our customers in the NGL, petrochemical, heating and other related industries. We usually experience an increase in the demand for storage services during the spring and summer months due to increased feedstock storage requirements for motor gasoline production, and a decrease during the fall and winter months when propane inventories are being drawn down for heating needs.

The following table summarizes the gross working capacity of our primary storage assets and our ownership of such capacity (on a net basis in accordance with our ownership interest).

NGL and Related Product Storage Facilities by State	Usable Storage Capacity (MMBbls)
Texas(1)	120.7
Louisiana	13.5
Kansas	8.4
Mississippi	7.8
Others (2)	9.6
Total (3)	160.0