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| Delaware                             | 76-0291058                                                                                |
|--------------------------------------|-------------------------------------------------------------------------------------------|
| (State      or Other Jurisdiction of | (I.R.S.      Employer Identification No.)                                                 |
| Incorporation      or Organization)  |                                                                                      |
|                                 |                                                                                      |   |
|                                 | 1100      Louisiana Street, Suite 1600                                                    |   |
|                                 | Houston,      Texas 77002                                                            |   |
|                                 |     (Address      of Principal Executive Offices, Including Zip Code) |   |
|                                 |                                                                                      |   |
|                                 | (713)      381-3636                                                                       |   |
|                                 | (Registrant’s      Telephone Number, Including Area Code)                           |   |

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|   | Yes þ   No      o |
|--------|---------------------------------------|

|   | Yes  ̈   No  ̈ |
|--------|-------------------------------------------------|

|   |  Large      accelerated filer þ                                                    |                    Accelerated      filer o |
|--------|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   |  Non-accelerated      filer   o      (Do not check if a smaller reporting company) |  Smaller      reporting company o                                                                                                     |

|   | Yes o   No      þ |
|--------|---------------------------------------|

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Table of Contents

TEPPCO PARTNERS, L.P.

|                                       |                                                                                                            | Page      No. |
|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------|---------------|
| PART I.  FINANCIAL  INFORMATION. |
| Item 1.                                    | Financial Statements.                                                                                           |          |
|                                       |    Unaudited Condensed Consolidated Balance      Sheets                                          | 2             |
|                                       |    Unaudited Condensed Statements of Consolidated      Income                                    | 3             |
|                                       |    Unaudited Condensed Statements of Consolidated      Comprehensive Income                      | 4             |
|                                       |    Unaudited Condensed Statements of Consolidated Cash      Flows                                | 5             |
|                                       |    Unaudited Condensed Statements of Consolidated Partners’      Capital                   | 6             |
|                                       |    Notes to Unaudited Condensed Consolidated Financial      Statements:                          |          |
|                                       |        1.  Partnership Organization and Basis of      Presentation | 7             |
|                                       |        2.  General Accounting Matters                              | 8             |
|                                       |        3.  Accounting for Equity    Awards                         | 8             |
|                                       |        4.  Derivative Instruments and Hedging      Activities      | 11            |
|                                       |        5.  Inventories                                             | 15            |
|                                       |        6.  Property, Plant and    Equipment                        | 15            |
|                                       |        7.  Investments in Unconsolidated      Affiliates           | 16            |
|                                       |        8.  Intangible Assets and    Goodwill                       | 17            |
|                                       |        9. Debt Obligations                                                   | 18            |
|                                       |      10. Partners’ Capital and Distributions                                     | 19            |
|                                       |      11. Business Segments                                                             | 21            |
|                                       |      12. Related Party Transactions                                                    | 24            |
|                                       |      13. Earnings Per Unit                                                             | 27            |
|                                       |      14. Commitments and Contingencies                                                 | 28            |
|                                       |      15. Supplemental Cash Flow Information                                            | 33            |
|                                       |      16. Supplemental Condensed Consolidating Financial      Information               | 33            |
|                                       |      17. Subsequent Events                                                             | 37            |
| Item 2.                                    | Management’s Discussion and Analysis of Financial      Condition                                          |          |
|                                       |         and Results of      Operations.                                                               | 39            |
|                                       |    Cautionary Note Regarding Forward-Looking      Statements.                                    | 39            |
| Item 3.                                    | Quantitative and Qualitative Disclosures about Market      Risk.                                                | 57            |
| Item 4.                                    | Controls and Procedures.                                                                                        | 58            |
|                                       |                                                                                                            |          |
| PART II.  OTHERINFORMATION.      |
| Item 1.                                    | Legal Proceedings.                                                                                              | 59            |
| Item 1A.                                   | Risk Factors.                                                                                                   | 59            |
| Item 5.                                    | Other Information.                                                                                              | 60            |
| Item 6.                                    | Exhibits.                                                                                                       | 60            |
|                                       |                                                                                                            |          |
| Signatures                                 | 62                                                                                                              |

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Table of Contents

PART I.  FINANCIAL INFORMATION.

Item 1.  FinancialStatements.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                                                  |   | March      31, |    |   | December      31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                                                                |   | 2009           |    |   | 2008              |   |
| Current      assets:                                                                                                                                                                                                  |   |           |    |   |              |   |
|          Cash and cash equivalents                                                                                                                                                                     |   | $              | 2.2     |   |              | $      | -- |   |
|          Accounts receivable, trade (net of allowance for doubtful accounts      of                                                                                                                    |   |           |    |   |              |   |   |   |
|            $2.6 at March 31, 2009 and December 31, 2008)                                                                                                                                          |   |           | 741.6   |   |              |   | 790.4 |   |
|          Accounts receivable, related parties                                                                                                                                                               |   |           | 10.7    |   |              |   | 15.8 |   |
|          Inventories                                                                                                                                                                                   |   |           | 52.6    |   |              |   | 52.9 |   |
|          Other                                                                                                                                                                                         |   |           | 33.4    |   |              |   | 48.5 |   |
|               Total current assets                                                                                                                                            |   |           | 840.5   |   |              |   | 907.6 |   |
| Property, plant      and equipment, at cost (net of accumulated depreciation      of                                                                                                                                  |   |           |    |   |              |   |   |   |
|          $703.8 at March 31, 2009 and $678.8 at December 31,      2008)                                                                                                                                |   |           | 2,517.2 |   |              |   | 2,439.9 |   |
| Investments      in unconsolidated affiliates                                                                                                                                                                         |   |           | 1,244.8 |   |              |   | 1,255.9 |   |
| Intangible      assets (net of accumulated amortization of $165.1      at            March 31, 2009 and $158.3 at December 31, 2008)                                                    |   |           | 202.3   |   |              |   | 207.7 |   |
| Goodwill                                                                                                                                                                                                              |   |           | 106.6   |   |              |   | 106.6 |   |
| Other      assets                                                                                                                                                                                                     |   |           | 131.3   |   |              |   | 132.1 |   |
|        Total assets                                                                                                                                                                                              |   | $              | 5,042.7 |   |              | $      | 5,049.8 |   |
|                                                                                                                                                                                                                  |   |           |    |   |              |   |   |   |
| LIABILITIES      AND PARTNERS’ CAPITAL                                                                                                                                                                          |   |           |    |   |              |   |   |   |
| Current      liabilities:                                                                                                                                                                                             |   |           |    |   |              |   |   |   |
|          Accounts payable and accrued liabilities                                                                                                                                                      |   | $              | 755.2   |   |              | $      | 792.5 |   |
|          Accounts payable, related parties                                                                                                                                                             |   |           | 20.6    |   |              |   | 17.2 |   |
|          Accrued interest                                                                                                                                                                              |   |           | 45.7    |   |              |   | 36.4 |   |
|          Other accrued taxes                                                                                                                                                                           |   |           | 18.0    |   |              |   | 23.0 |   |
|          Other                                                                                                                                                                                         |   |           | 14.9    |   |              |   | 30.9 |   |
|                Total current liabilities                                                                                                                                 |   |           | 854.4   |   |              |   | 900.0 |   |
| Long-term      debt:                                                                                                                                                                                                  |   |           |    |   |              |   |   |   |
|        Senior      notes                                                                                                                                                           |   |           | 1,712.1 |   |              |   | 1,713.3 |   |
|        Junior      subordinated notes                                                                                                                                              |   |           | 299.6   |   |              |   | 299.6 |   |
|        Other      long-term debt                                                                                                                                                   |   |           | 565.6   |   |              |   | 516.7 |   |
|                    Total      long-term debt                                                                           |   |           | 2,577.3 |   |              |   | 2,529.6 |   |
| Other      liabilities and deferred credits                                                                                                                                                                           |   |           | 28.5    |   |              |   | 28.7 |   |
| Commitments      and contingencies                                                                                                                                                                                    |   |           |    |   |              |   |   |   |
| Partners’      capital:                                                                                                                                                                                         |   |           |    |   |              |   |   |   |
|          Limited partners’ interests:                                                                                                                                                            |   |           |    |   |              |   |   |   |
|           Limited partner units (104,618,116 units outstanding at March 31,      2009             and 104,547,561 units outstanding at December 31,      2008) |   |           | 1,737.7 |   |              |   | 1,746.2 |   |
|           Restricted limited partner units (149,200 units outstanding      at March 31,             2009 and 157,300 units outstanding at December 31,      2008)        |   |           | 1.7     |   |              |   | 1.4 |   |
|          General partner’s interest                                                                                                                                                              |   |           | (112.5  | )      |              |   | (110.3 | ) |
|          Accumulated other comprehensive loss                                                                                                                                                          |   |           | (44.4   | )      |              |   | (45.8 | ) |
|                Total partners’ capital                                                                                                                             |   |           | 1,582.5 |   |              |   | 1,591.5 |   |
|           Total liabilities and partners’ capital                                                                                                                                           |   | $              | 5,042.7 |   |              | $      | 5,049.8 |   |

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UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATEDINCOME

|                                                                                |   | For      the Three Months |    |
|-------------------------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                                |   | Ended      March 31,      |    |
|                                                                                |   | 2009                      |    |   | 2008 |   |
| Operating      revenues:                                                            |   |                      |    |   |   |   |
|      Sales      of petroleum products                      |   | $                         | 1,277.9 |   |   | $ | 2,644.6 |   |
|      Transportation      – Refined products          |   |                      | 35.9    |   |   |   | 37.3 |   |
|      Transportation      – LPGs                      |   |                      | 38.3    |   |   |   | 36.2 |   |
|      Transportation      – Crude oil                 |   |                      | 21.9    |   |   |   | 15.3 |   |
|      Transportation      – NGLs                      |   |                      | 12.5    |   |   |   | 13.0 |   |
|      Transportation      – Marine                    |   |                      | 36.9    |   |   |   | 25.5 |   |
|      Gathering      – Natural gas                    |   |                      | 13.6    |   |   |   | 13.4 |   |
|      Other                                                 |   |                      | 20.6    |   |   |   | 23.2 |   |
|          Total      operating revenues |   |                      | 1,457.6 |   |   |   | 2,808.5 |   |
| Costs and expenses:                                                       |   |                      |    |   |   |   |   |   |
|      Purchases      of petroleum products                  |   |                      | 1,235.5 |   |   |   | 2,606.6 |   |
|      Operating      expense                                |   |                      | 66.8    |   |   |   | 53.8 |   |
|      Operating      fuel and power                         |   |                      | 19.7    |   |   |   | 21.4 |   |
|      General      and administrative                       |   |                      | 10.0    |   |   |   | 8.8 |   |
|      Depreciation      and amortization                    |   |                      | 33.0    |   |   |   | 28.3 |   |
|      Taxes      – other than income taxes            |   |                      | 6.9     |   |   |   | 6.1 |   |
|          Total      costs and expenses |   |                      | 1,371.9 |   |   |   | 2,725.0 |   |
|          Operating      income         |   |                      | 85.7    |   |   |   | 83.5 |   |
| Other      income (expense):                                                        |   |                      |    |   |   |   |   |   |
|   Interest      expense                                                   |   |                      | (32.1   | ) |   |   | (38.6 | ) |
|   Equity      in earnings of unconsolidated affiliates                    |   |                      | 25.1    |   |   |   | 19.7 |   |
|   Other,      net                                                         |   |                      | 0.3     |   |   |   | 0.3 |   |
| Income      before provision for income taxes                                       |   |                      | 79.0    |   |   |   | 64.9 |   |
|   Provision      for income taxes                                         |   |                      | 0.8     |   |   |   | 0.8 |   |
| Net      income                                                                     |   | $                         | 78.2    |   |   | $ | 64.1 |   |
|                                                                                |   |                      |    |   |   |   |   |   |
| Net      income allocation:                                                         |   |                      |    |   |   |   |   |   |
|   Limited      partners’ interest in net income                     |   | $                         | 65.0    |   |   | $ | 53.4 |   |
|   General      partner’s interest in net income                     |   | $                         | 13.2    |   |   | $ | 10.7 |   |
|                                                                                |   |                      |    |   |   |   |   |   |
| Earnings      per unit, basic and diluted                                           |   | $                         | 0.62    |   |   | $ | 0.57 |   |

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Table of Contents

UNAUDITED CONDENSED STATEMENTS OFCONSOLIDATED

|                                                                                               |   | For      the Three Months |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                               |   | Ended      March 31,      |   |
|                                                                                               |   | 2009                      |   |   | 2008 |   |
|                                                                                               |   |                      |   |   |   |   |
| Net      income                                                                                    |   | $                         | 78.2   |   |   | $ | 64.1 |   |
| Other      comprehensive income (loss):                                                            |   |                      |   |   |   |   |   |   |
|   Cash      flow hedges: (see Note 4)                                                    |   |                      |   |   |   |   |   |   |
|     Change      in fair values of interest rate derivative instruments         |   |                      | --     |   |   |   | (23.2 | ) |
|     Reclassification      adjustment for loss included in net income           |   |                      |   |   |   |   |   |   |
|        related      to interest rate derivative instruments     |   |                      | 1.4    |   |   |   | -- |   |
|     Changes      in fair values of commodity derivative instruments            |   |                      | --     |   |   |   | (6.5 | ) |
|     Reclassification      adjustment for loss included in net income           |   |                      |   |   |   |   |   |   |
|        related      to commodity derivative instruments         |   |                      | --     |   |   |   | 9.6 |   |
|          Total      cash flow hedges                  |   |                      | 1.4    |   |   |   | (20.1 | ) |
|          Total      other comprehensive income (loss) |   |                      | 1.4    |   |   |   | (20.1 | ) |
| Comprehensive      income                                                                          |   | $                         | 79.6   |   |   | $ | 44.0 |   |

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UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASHFLOWS

|                                                                                                                 |   | For      the Three Months |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                                                 |   | Ended      March 31,      |   |
|                                                                                                                 |   | 2009                      |   |   | 2008 |   |
| Operating      activities:                                                                                           |   |                      |   |   |   |   |
|    Net      income                                                                                    |   | $                         | 78.2   |   |   | $ | 64.1 |   |
|    Adjustments      to reconcile net income to cash provided by operating      activities:            |   |                      |   |   |   |   |   |   |
|            Depreciation and amortization                                                    |   |                      | 33.0   |   |   |   | 28.3 |   |
|            Amortization of deferred compensation                                            |   |                      | 0.2    |   |   |   | 0.3 |   |
|            Amortization in interest expense                                                 |   |                      | 0.7    |   |   |   | 2.9 |   |
|            Changes in fair market value of derivative instruments                           |   |                      | (0.6   | ) |   |   | (0.4 | ) |
|            Equity in earnings of unconsolidated affiliates                                  |   |                      | (25.1  | ) |   |   | (19.7 | ) |
|            Distributions received from unconsolidated affiliates                            |   |                      | 47.7   |   |   |   | 37.2 |   |
|            Loss on early extinguishment of debt                                             |   |                      | --     |   |   |   | 8.7 |   |
|            Net effect of changes in operating accounts (see Note 15)                        |   |                      | 22.5   |   |   |   | (62.7 | ) |
|           Net      cash provided by operating activities           |   |                      | 156.6  |   |   |   | 58.7 |   |
| Investing      activities:                                                                                           |   |                      |   |   |   |   |   |   |
|    Cash      used for business combinations                                                           |   |                      | --     |   |   |   | (338.5 | ) |
|    Investment      in Jonah Gas Gathering Company                                                     |   |                      | (12.3  | ) |   |   | (31.8 | ) |
|    Investment      in Texas Offshore Port System (see Notes 7 and 17)                                 |   |                      | 1.7    |   |   |   | -- |   |
|    Acquisition      of intangible assets                                                              |   |                      | (1.4   | ) |   |   | (0.3 | ) |
|    Cash      paid for linefill classified as other assets                                             |   |                      | --     |   |   |   | (14.3 | ) |
|    Capital      expenditures                                                                          |   |                      | (101.6 | ) |   |   | (51.6 | ) |
|           Net      cash used in investing activities               |   |                      | (113.6 | ) |   |   | (436.5 | ) |
| Financing      activities:                                                                                           |   |                      |   |   |   |   |   |   |
|    Borrowings      under debt agreements                                                              |   |                      | 301.8  |   |   |   | 2,512.6 |   |
|    Repayments      of debt                                                                            |   |                      | (252.8 | ) |   |   | (2,001.8 | ) |
|    Net      proceeds from issuance of limited partner units                                           |   |                      | 1.6    |   |   |   | 2.7 |   |
|    Debt      issuance costs                                                                           |   |                      | --     |   |   |   | (8.7 | ) |
|    Settlement      of interest rate derivative instruments - treasury locks                           |   |                      | --     |   |   |   | (52.1 | ) |
|    Distributions      paid to partners                                                                |   |                      | (91.4  | ) |   |   | (74.9 | ) |
|           Net      cash provided by (used in) financing activities |   |                      | (40.8  | ) |   |   | 377.8 |   |
| Net      change in cash and cash equivalents                                                                         |   |                      | 2.2    |   |   |   | -- |   |
| Cash      and cash equivalents, January 1                                                                            |   |                      | --     |   |   |   | -- |   |
| Cash      and cash equivalents, March 31                                                                             |   | $                         | 2.2    |   |   | $ | -- |   |

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UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED PARTNERS’CAPITAL

|                                                                                    |   | Limited  |    |   | General |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------|--------|----------|---------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                    |   | Partners |    |   | Partner |   |   | AOCI   |   |   | Total  |   |
| Balance,      December 31, 2008                                                         |   | $        | 1,747.6 |   |    | $      | (110.3 | )      |   | $      | (45.8  | )      |   | $ | 1,591.5 |   |
|   Net      proceeds from issuance of limited partner units                    |   |     | 1.6     |   |    |   | --     |   |   |   | --     |   |   |   | 1.6 |   |
|        Net income                                                                  |   |     | 65.0    |   |    |   | 13.2   |   |   |   | --     |   |   |   | 78.2 |   |
|        Distributions paid to partners                                              |   |     | (76.0   | )      |    |   | (15.4  | )      |   |   | --     |   |   |   | (91.4 | ) |
|        Non-cash contributions                                                      |   |     | 0.2     |   |    |   | --     |   |   |   | --     |   |   |   | 0.2 |   |
|        Amortization of equity awards                                               |   |     | 1.0     |   |    |   | --     |   |   |   | --     |   |   |   | 1.0 |   |
|        Reclassification adjustment for loss included in net                        |   |     |    |   |    |   |   |   |   |   |   |   |   |   |   |   |
|           income related to interest rate derivative    instruments |   |     | --      |   |    |   | --     |   |   |   | 1.4    |   |   |   | 1.4 |   |
| Balance,      March 31, 2009                                                            |   | $        | 1,739.4 |   |    | $      | (112.5 | )      |   | $      | (44.4  | )      |   | $ | 1,582.5 |   |

|                                                                                                                                                                                 |   | Limited  |    |   | General |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                 |   | Partners |    |   | Partner |   |   | AOCI   |   |   | Total  |   |
| Balance,      December 31, 2007                                                                                                                                                      |   | $        | 1,395.2 |   |    | $      | (88.0  | )      |   | $      | (42.6  | )      |   | $ | 1,264.6 |   |
|           Net proceeds from issuance of limited partner units                                                                                                    |   |     | 2.7     |   |    |   | --     |   |   |   | --     |   |   |   | 2.7 |   |
|           Issuance of limited partner units in connection with             Cenac acquisition on February 1, 2008              |   |     | 186.6   |   |    |   | --     |   |   |   | --     |   |   |   | 186.6 |   |
|           Net income                                                                                                                                             |   |     | 53.4    |   |    |   | 10.7   |   |   |   | --     |   |   |   | 64.1 |   |
|           Distributions paid to partners                                                                                                                         |   |     | (62.5   | )      |    |   | (12.4  | )      |   |   | --     |   |   |   | (74.9 | ) |
|           Non-cash contributions                                                                                                                                 |   |     | 0.1     |   |    |   | --     |   |   |   | --     |   |   |   | 0.1 |   |
|           Amortization of equity awards                                                                                                                          |   |     | 0.2     |   |    |   | --     |   |   |   | --     |   |   |   | 0.2 |   |
|           Changes in fair values of commodity derivative             instruments                                              |   |     | --      |   |    |   | --     |   |   |   | (6.5   | )      |   |   | (6.5 | ) |
|           Reclassification adjustment for loss included in net             income related to commodity derivative instruments |   |     | --      |   |    |   | --     |   |   |   | 9.6    |   |   |   | 9.6 |   |
|           Changes in fair values of interest rate derivative             instruments                                          |   |     | --      |   |    |   | --     |   |   |   | (23.2  | )      |   |   | (23.2 | ) |
| Balance,      March 31, 2008                                                                                                                                                         |   | $        | 1,575.7 |   |    | $      | (89.7  | )      |   | $      | (62.7  | )      |   | $ | 1,423.3 |   |

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1.  Partnership Organization and Basis ofPresentation

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Note 2.  General Accounting Matters

Note 3.  Accounting for Equity Awards

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |    |   |              |   |   | Weighted-            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |    |   | Weighted-         |   |   | Average              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |    |   | Average           |   |   | Remaining            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Number        |    |   | Strike      Price |   |   | Contractual          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | of      Units |    |   | (dollars/Unit)    |   |   | Term      (in years) |   |
| Unit      Options:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |    |   |              |   |   |                 |   |
|       Outstanding      at December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          | 355,000 |   |              | $      | 40.00  |                 |   |   |   |
|            Granted      (1)                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 154,000 |   |              | $      | 20.32  |                 |   |   |   |
|            Forfeited                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | (47,000 | )      |              | $      | 40.30  |                 |   |   |   |
|       Outstanding      at March 31, 2009 (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | 462,000 |   |              | $      | 33.41  |                 |   |   | 4.80 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |    |   |              |   |   |                 |   |   |   |   |
| (1)        The      total grant date fair value of these awards granted on February 23, 2009      was $0.6 million based upon the following assumptions: (i) expected      life of the option of 4.9 years; (ii) risk-free interest rate of 1.8%;      (iii) expected distribution yield on Units of 12.93%; (iv) estimated      forfeiture rate of 17%; and (v) expected unit price volatility on Units of      71.79%.(2)         No      unit options were exercisable at March 31, 2009. |   |

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|                                                                                                                                                                                                                                                                     |   |          |    |   |                 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                     |   |          |    |   | Weighted-            |   |
|                                                                                                                                                                                                                                                                     |   |          |    |   | Average      Grant   |   |
|                                                                                                                                                                                                                                                                     |   | Number        |    |   | Date      Fair Value |   |
|                                                                                                                                                                                                                                                                     |   | of      Units |    |   | per      Unit (1)    |   |
| Restricted      Units at December 31, 2008                                                                                                                                                                                                                               |   |          | 157,300 |   |                 |   |   |
|    Forfeited                                                                                                                                                                                                                                              |   |          | (8,100  | )      |                 | $      | 40.31 |   |
| Restricted      Units at March 31, 2009                                                                                                                                                                                                                                  |   |          | 149,200 |   |                 |   |   |   |
|                                                                                                                                                                                                                                                                     |   |          |    |   |                 |   |   |   |
| (1)       Determined      by dividing the aggregate grant date fair value of awards by the number of      awards issued. The weighted-average grant date fair value per unit      for forfeited awards is determined before an allowance for      forfeitures. |   |

| §   | Non-Executive      Members of the Board of Directors.  At March 31, 2009, a      total of 95,654 UARs, awarded to non-executive members of the board of      directors under the 2006 LTIP, were outstanding at a weighted average      exercise price of $41.82 per Unit (66,225 UARs issued in 2007 at an      exercise price of $45.30 per Unit to the then three non-executive members      of the board of directors and 29,429 UARs issued in 2008 at an exercise      price of $33.98 per Unit to a non-executive member of the board of      directors in connection with his election to the board).  UARs      awarded to non-executive directors are accounted for in a manner similar      to SFAS 123(R) liability awards.  Mr. Hutchison, who was a      non-executive member of the board of directors at the time of issuance of      these UARs (and the phantom units discussed above), became interim      executive chairman in March 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Employees.  At      March 31, 2009, a total of 305,954 UARs, awarded under the 2006 LTIP to      certain employees providing services directly to us, were outstanding at      an exercise price of $45.35 per Unit. UARs awarded to employees are      accounted for as liability awards under SFAS 123(R) since the current      intent is to settle the awards incash. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Note 4.  Derivative Instruments and HedgingActivities

| §   | Changes      in the fair value of a recognized asset or liability, or an unrecognized      firm commitment – In a fair value hedge, all gains and losses (of      both the derivative instrument and the hedged item) are recognized in      income during the period of change. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Variable      cash flows of a forecasted transaction – In a cash flow hedge, the      effective portion of the hedge is reported in other comprehensive income      and is reclassified into earnings when the forecasted transaction affects      earnings. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                   |            | Accounting     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|----------------|
| Derivative      Purpose                                                                                                                                                                                                                                                                                                                                                                                                                | Volume    (1)   | Treatment      |
| Derivatives      not designated as hedging instruments under SFAS 133:                                                                                                                                                                                                                                                                                                                                                                 |            |           |
|       Crude      oil risk management activities (2)                                                                                                                                                                                                                                                                                                                                                      | 2.8      MMBbls | Mark-to-market |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |            |           |
| (1)         Volumes      for derivatives not designated as hedging instruments reflect the absolute      value of the derivative notional volumes.(2)    Reflects      the use of derivative instruments to manage risks associated with our      portfolio of crude oil storage assets.  These commodity      derivative instruments have forward positions through June      2009. |

|                                                                 | Asset      Derivatives         |   | Liability      Derivatives |   |
|----------------------------------------------------------------------|--------------------------------|--------|----------------------------|--------|
|                                                                 | March      31, 2009            |   | December      31, 2008     |   | March      31, 2009 |   | December      31, 2008 |   |
|                                                                 | Balance      Sheet             |   |                       | Fair   |   | Balance      Sheet |   | Fair |   | Balance      Sheet |   | Fair |   | Balance      Sheet |   | Fair |   |
|                                                                 | Location                       |   |                       | Value  |   | Location |   | Value |   | Location |   | Value |   | Location |   | Value |   |
|                                                                 |                           |
| Derivatives      not designated as hedging instruments under SFAS133 |                           |
| Commodity      derivatives                                           | Other      current assets |   | $                          | 1.8    |   | Other      current assets |   | $ | 15.7 |   | Other      current liabilities |   | $ | 1.1 |   | Other      current liabilities |   | $ | 15.7 |   |
| Total      derivatives not                                           |                           |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| designated      as hedging                                           |                           |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| instruments                                                          |                           |   | $                          | 1.8    |   |   |   | $ | 15.7 |   |   |   | $ | 1.1 |   |   |   | $ | 15.7 |   |

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| Derivatives      in SFAS 133   |   | Gain/(Loss)      Recognized in |                      | Gain/(Loss)      Recognized in                                                                                                          |
|--------------------------------|--------|--------------------------------|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| Fair      Value                |   | Income      on Derivative      |                      | Income      on Hedged Item                                                                                                              |
| Hedging      Relationships     |   | Amount                         | Location                  |                                                                                                                                    | Amount | Location |
|                           |   |                           | For      the Three Months |                                                                                                                                    |   | For      the Three Months |   |
|                           |   |                           | Ended      March 31,      |                                                                                                                                    |   | Ended      March 31, |   |
|                           |   |                           | 2009                      |                                                                                                                                    | 2008 |   |   | 2009 |   | 2008 |   |
| Interest      rate derivatives | $      | --                             |                      | $                      -- |             Interest expense | $ | -- |   |  $                        (1.0) |               Interest expense |
|    Total        |   | $                              | --                        |                                                                                                                                    | $                      -- |   |  $ | -- |   |  $                             (1.0) |   |

|                           |   |                                   | Change      in Value      |
|--------------------------------|--------|----------------------------------------|---------------------------|
| Derivatives                    |   | Recognized      in OCI on              |
| in      SFAS 133 Cash Flow     |   | Derivative                             |
| Hedging      Relationships     |   | (Effective      Portion)               |
|                           |   |                                   | For      the Three Months |
|                           |   |                                   | Ended      March 31,      |
|                           |   |                                   | 2009                      |   | 2008 |
| Interest      rate derivatives | $      | --                                     |                      | $                        (23.2) |
| Commodity      derivatives     |   |       -- |                      | (6.5) |
|    Total        |   | $                                      | --                        |   | $                        (29.7) |

|                           |                                 |   | Amount      of Gain/(Loss)  |   |
|--------------------------------|--------------------------------------|--------|-----------------------------|--------|
| Derivatives                    | Location      of Gain/(Loss)         |   | Reclassified      from AOCI |   |
| in      SFAS 133 Cash Flow     | Reclassified      from AOCI          |   | to      Income              |   |
| Hedging      Relationships     | into      Income (Effective Portion) |   | (Effective      Portion)    |   |
|                           |                                 |   | For      the Three Months   |   |
|                           |                                 |   | Ended      March 31,        |   |
|                           |                                 |   | 2009                        |   |   | 2008 |   |
| Interest      rate derivatives | Interest      expense                |   | $                           | (1.4   | ) |   | $ | -- |   |
| Commodity      derivatives     | Revenue                              |   |                        | --     |   |   |   | (9.6 | ) |
|    Total        |                                 |   | $                           | (1.4   | ) |   | $ | (9.6 | ) |

|                           | Location      of Gain/(Loss) |   | Amount      of Gain/(Loss)   |   |
|--------------------------------|------------------------------|--------|------------------------------|--------|
| Derivatives                    | Recognized      in Income    |   | Recognized      in Income on |   |
| in      SFAS 133 Cash Flow     | on      Ineffective Portion  |   | Ineffective      Portion of  |   |
| Hedging      Relationships     | of      Derivative           |   | Derivative                   |   |
|                           |                         |   | For      the Three Months    |   |
|                           |                         |   | Ended      March 31,         |   |
|                           |                         |   | 2009                         |   |   | 2008 |   |
| Interest      rate derivatives | Interest      expense        |   | $                            | --     |   |   | $ | (3.6 | ) |
| Commodity      derivatives     | Revenue                      |   |                         | --     |   |   |   | -- |   |
|    Total        |                         |   | $                            | --     |   |   | $ | (3.6 | ) |

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| Derivatives      Not        |   | Gain/(Loss)      Recognized in |
|-----------------------------|--------|--------------------------------|
| Designated      as SFAS 133 |   | Income      on Derivative      |
| Hedging      Instruments    |   | Amount                         | Location |
|                        |   |                           | For      the Three Months |   |
|                        |   |                           | Ended      March 31, |   |
|                        |   |                           | 2009 |   | 2008 |   |
| Commodity      derivatives  | $      | 0.8                            |   | $               0.4 | Revenue |
|    Total     |   | $                              | 0.8 |   | $               0.4 |   |

|                                  |   | Level      2 |   |   | Level      3 |   |   | Total  |   |
|---------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
| Financial      assets:                |   |         |   |   |         |   |   |   |   |
| Commodity      derivative instruments |   | $            | 1.4    |   |         | $      | 0.4    |   |   | $ | 1.8 |   |
| Total                                 |   | $            | 1.4    |   |         | $      | 0.4    |   |   | $ | 1.8 |   |
|                                  |   |         |   |   |         |   |   |   |   |   |   |   |
| Financial      liabilities:           |   |         |   |   |         |   |   |   |   |   |   |   |
| Commodity      derivative instruments |   | $            | 1.1    |   |         | $      | --     |   |   | $ | 1.1 |   |
| Total                                 |   | $            | 1.1    |   |         | $      | --     |   |   | $ | 1.1 |   |

|                                    |   | For      the Three Months |   |
|-----------------------------------------|--------|---------------------------|--------|
|                                    |   | Ended      March 31,      |   |
|                                    |   | 2009                      |   |   | 2008 |   |
| Balance,      January 1                 |   | $                         | (0.1   | ) |   | $ | (0.4 | ) |
| Total      gains included in net income |   |                      | 0.4    |   |   |   | 0.4 |   |
| Purchases,      issuances, settlements  |   |                      | 0.1    |   |   |   | -- |   |
| Balance,      March 31                  |   | $                         | 0.4    |   |   | $ | -- |   |

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Note 5.  Inventories

|                                                                                                                                                                                                                                                                                       |   | March      31, |   |   | December      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                       |   | 2009           |   |   | 2008              |   |
| Crude      oil (1)                                                                                                                                                                                                                                                                         |   | $              | 21.5   |   |              | $      | 32.8 |   |
| Refined      products and LPGs (2)                                                                                                                                                                                                                                                         |   |           | 10.2   |   |              |   | 0.4 |   |
| Lubrication      oils and specialty chemicals                                                                                                                                                                                                                                              |   |           | 11.2   |   |              |   | 11.1 |   |
| Materials      and supplies                                                                                                                                                                                                                                                                |   |           | 9.1    |   |              |   | 8.6 |   |
| NGLs                                                                                                                                                                                                                                                                                       |   |           | 0.6    |   |              |   | -- |   |
|    Total                                                                                                                                                                                                                                                                    |   | $              | 52.6   |   |              | $      | 52.9 |   |
|                                                                                                                                                                                                                                                                                       |   |           |   |   |              |   |   |   |
| (1)        At      March 31, 2009 and December 31, 2008, $21.2 million and $30.7 million,      respectively, of our crude oil inventory was subject to forward sales      contracts.(2)        Refined      products and LPGs inventory is managed on a combinedbasis. |   |

Note 6.  Property, Plant and Equipment

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Estimated        |    |   |           |   |    |              |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|----------------|--------|---------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Useful      Life |    |   | March      31, |   |    | December      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | in      Years    |    |   | 2009           |   |    | 2008              |   |
| Plants      and pipelines (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |             | 5-40(4) |   |           | $      | 1,926.9 |              |   | $ | 1,919.7 |   |
| Underground      and other storage facilities (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 5-40(5) |   |           |   | 306.4   |              |   |   | 296.8 |   |
| Transportation      equipment (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 5-10    |   |           |   | 11.9    |              |   |   | 11.3 |   |
| Marine      vessels                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             | 20-30   |   |           |   | 453.0   |              |   |   | 453.0 |   |
| Land      and right of way                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             |    |   |           |   | 143.9   |              |   |   | 143.8 |   |
| Construction      work in progress                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |    |   |           |   | 378.9   |              |   |   | 294.1 |   |
|     Total      property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             |    |   |           | $      | 3,221.0 |              |   | $ | 3,118.7 |   |
| Less:      accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |             |    |   |           |   | 703.8   |              |   |   | 678.8 |   |
|     Property,      plant and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |             |    |   |           | $      | 2,517.2 |              |   | $ | 2,439.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             |    |   |           |   |    |              |   |   |   |   |
| (1)  Plants      and pipelines include refined products, LPGs, NGLs, petrochemical, crude      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 and other related assets.(3)       Transportation      equipment includes vehicles and similar assets used in our      operations.(4)       The      estimated useful lives of major components of this category are as      follows: pipelines, 20-40 years (with some equipment at 5 years);      terminal facilities, 10-40 years; office furniture and equipment, 5-10      years; buildings, 20-40 years; and laboratory and shop equipment, 5-40      years.(5)       The      estimated useful lives of major components of this category are as      follows: underground storage facilities, 20-40 years (with some      components at 5 years); and storage tanks, 20-30 years. |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                | For      the Three Months |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|---------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                | Ended      March 31,      |
|                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                | 2009                      |   |   | 2008 |
| Depreciation      expense (1)                                                                                                                                                                                                                                                                                                                                                                                     | $             25.3 |                      |   | $          21.9 |
| Capitalized      interest (2)                                                                                                                                                                                                                                                                                                                                                                                     | 5.3                                                                                 |                      |   | 4.4 |
|                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                |                      |   |   |
| (1)        Depreciation      expense is a component of depreciation and amortization expense as      presented in our statements of consolidated income.(2)       Capitalized      interest (included in interest expense on our statements of consolidated      income) increases the carrying value of the associated asset and reduces      interest expense during the period it is  recorded. |

Note 7.  Investments In UnconsolidatedAffiliates

|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Ownership          |   |   |           |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Percentage      at |   |   |           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | March      31,     |   |   | March      31, |   |   | December      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009               |   |   | 2009           |   |   | 2008 |   |
| Downstream      Segment:                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |   |   |           |   |   |   |   |
| Centennial      Pipeline LLC (“Centennial”)                                                                                                                                                                                                                                                                                                                                                                     |   |               | 50.0%  |   |           | $      | 70.2 |   |   | $ | 71.8 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               | 25.0%  |   |           |   | 0.4 |   |   |   | 0.4 |   |
| Upstream      Segment:                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |   |   |           |   |   |   |   |   |   |   |
| Seaway      Crude Pipeline Company (“Seaway”)                                                                                                                                                                                                                                                                                                                                                                   |   |               | 50.0%  |   |           |   | 184.1 |   |   |   | 190.1 |   |
| Texas      Offshore Port System (1)                                                                                                                                                                                                                                                                                                                                                                                         |   |               | 33.3%  |   |           |   | 34.2 |   |   |   | 35.9 |   |
| Midstream      Segment:                                                                                                                                                                                                                                                                                                                                                                                                     |   |               |   |   |           |   |   |   |   |   |   |   |
| Jonah      Gas Gathering Company (“Jonah”)                                                                                                                                                                                                                                                                                                                                                                      |   |               | 80.64% |   |           |   | 955.9 |   |   |   | 957.7 |   |
|    Total                                                                                                                                                                                                                                                                                                                                                                                                     |   |               |   |   |           | $      | 1,244.8 |   |   | $ | 1,255.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |   |   |           |   |   |   |   |   |   |   |
| (1)        In      January 2009, we received a $3.1 million refund of our 2008 contributions      to Texas Offshore Port System due to a delay in the timing of the expected      project spending. In February and March 2009, we then invested an      additional $1.4 million in Texas Offshore Port System. See Note 17      for information regarding our dissociation with this      partnership. |   |

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|                           |                                                                                                        | For      the Three Months |
|--------------------------------|-------------------------------------------------------------------------------------------------------------|---------------------------|
|                           |                                                                                                        | Ended      March 31,      |
|                           |                                                                                                        | 2009                      |   |   | 2008 |
| Downstream      Segment        | $                (3.1)      |                      |   | $      (4.1) |
| Upstream      Segment          | 3.3                                                                                                         |                      |   | 3.0 |
| Midstream      Segment         | 25.6                                                                                                        |                      |   | 23.7 |
| Intersegment      eliminations | (0.7)                                                                                                       |                      |   | (2.9) |
| Total                          | $                 25.1 |                      |   | $      19.7 |

|                    |   | Summarized      Income Statement Information For the Three Months Ended |   |
|-------------------------|--------|-------------------------------------------------------------------------|--------|
|                    |   | March      31, 2009                                                     |   |   | March      31, 2008 |   |
|                    |   |                                                                    |   |   | Operating |   |   | Net |   |   |   |   |   | Operating |   |   | Net |   |
|                    |   | Revenues                                                                |   |   | Income |   |   | Income      (Loss) |   |   | Revenues |   |   | Income |   |   | Income      (Loss) |   |
| Downstream      Segment |   | $                                                                       | 9.7    |   |   | $ | 2.2 |   |   | $ | (0.5 | ) |   | $ | 9.6 |   |   | $ | 0.9 |   |   | $ | (1.8 | ) |
| Upstream      Segment   |   |                                                                    | 19.7   |   |   |   | 8.7 |   |   |   | 8.7 |   |   |   | 20.6 |   |   |   | 10.4 |   |   |   | 10.4 |   |
| Midstream      Segment  |   |                                                                    | 59.4   |   |   |   | 31.9 |   |   |   | 32.0 |   |   |   | 58.2 |   |   |   | 29.3 |   |   |   | 29.4 |   |

Note 8.  Intangible Assets and Goodwill

|                         |   | March      31, 2009 |   |   | December      31, 2008 |   |
|------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|                         |   | Gross               |   |   | Accum.                 |   |   | Carrying |   |   | Gross |   |   | Accum. |   |   | Carrying |   |
|                         |   | Value               |   |   | Amort.                 |   |   | Value |   |   | Value |   |   | Amort. |   |   | Value |   |
| Downstream      Segment      |   | $                   | 8.0    |   |                   | $      | (1.3 | ) |   | $ | 6.7 |   |   | $ | 6.6 |   |   | $ | (1.2 | ) |   | $ | 5.4 |   |
| Upstream      Segment        |   |                | 11.5   |   |                   |   | (3.5 | ) |   |   | 8.0 |   |   |   | 11.5 |   |   |   | (3.4 | ) |   |   | 8.1 |   |
| Midstream      Segment       |   |                | 277.9  |   |                   |   | (150.8 | ) |   |   | 127.1 |   |   |   | 277.9 |   |   |   | (146.3 | ) |   |   | 131.6 |   |
| Marine      Services Segment |   |                | 70.0   |   |                   |   | (9.5 | ) |   |   | 60.5 |   |   |   | 70.0 |   |   |   | (7.4 | ) |   |   | 62.6 |   |
| Total                        |   | $                   | 367.4  |   |                   | $      | (165.1 | ) |   | $ | 202.3 |   |   | $ | 366.0 |   |   | $ | (158.3 | ) |   | $ | 207.7 |   |

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|                                            |   | For      the Three Months |   |
|-------------------------------------------------|--------|---------------------------|--------|
|                                            |   | Ended      March 31,      |   |
|                                            |   | 2009                      |   |   | 2008 |   |
| Downstream      Segment                         |   | $                         | 0.1    |   |   | $ | 0.1 |   |
| Upstream      Segment                           |   |                      | 0.1    |   |   |   | 0.1 |   |
| Midstream      Segment                          |   |                      | 4.5    |   |   |   | 5.0 |   |
| Marine      Services Segment                    |   |                      | 2.1    |   |   |   | 1.2 |   |
|        Total |   | $                         | 6.8    |   |   | $ | 6.4 |   |

|                         |   | March      31, |   |   | December      31, |   |
|------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                         |   | 2009           |   |   | 2008              |   |
| Downstream      Segment      |   | $              | 1.3    |   |              | $      | 1.3 |   |
| Upstream      Segment        |   |           | 14.9   |   |              |   | 14.9 |   |
| Marine      Services Segment |   |           | 90.4   |   |              |   | 90.4 |   |
| Total                        |   | $              | 106.6  |   |              | $      | 106.6 |   |

Note 9.  Debt Obligations

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | March      31, |    |   | December      31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009           |    |   | 2008              |   |
| Senior      debt obligations: (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           |    |   |              |   |
|               Revolving Credit Facility, due December 2012 (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $              | 565.6   |   |              | $      | 516.7 |   |
|               7.625% Senior Notes, due February 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 500.0   |   |              |   | 500.0 |   |
|               6.125% Senior Notes, due February 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 200.0   |   |              |   | 200.0 |   |
|               5.90% Senior Notes, due April 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           | 250.0   |   |              |   | 250.0 |   |
|               6.65% Senior Notes, due April 2018                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           | 350.0   |   |              |   | 350.0 |   |
|               7.55% Senior Notes, due April 2038                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           | 400.0   |   |              |   | 400.0 |   |
|           Total principal amount of long-term senior debtobligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           | 2,265.6 |   |              |   | 2,216.7 |   |
|           7.000% Junior Subordinated Notes, due June 2067 (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           | 300.0   |   |              |   | 300.0 |   |
|             Total principal amount of long-term debt obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           | 2,565.6 |   |              |   | 2,516.7 |   |
|           Adjustment to carrying value associated with hedges of fair value      and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           |    |   |              |   |   |   |
|             unamortized discounts (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           | 11.7    |   |              |   | 12.9 |   |
|            Total long-term debt obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           | 2,577.3 |   |              |   | 2,529.6 |   |
| Total      Debt Instruments (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $              | 2,577.3 |   |              | $      | 2,529.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (1)       TE      Products, TCTM, TEPPCO Midstream and Val Verde Gas Gathering Company, L.P.      (“Val Verde”) (collectively, the “Guarantor Subsidiaries”) have issued      full, unconditional, joint and several guarantees of our senior notes,      junior subordinated notes and revolving credit facility (“Revolving Credit      Facility”).(2)  The      weighted average interest rate paid on our variable rate Revolving Credit      Facility at March 31, 2009 was 1.13%.(3)       From      time to time we enter into interest rate swap agreements to hedge our      exposure to changes in the fair value on a portion of the debt obligations      presented above (see Note 4). At March 31, 2009 and December 31,      2008, amount includes $5.1 million and $5.2 million of unamortized      discounts, respectively, and $16.8 million and $18.1 million,      respectively, related to fair value hedges. |   |

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Table of Contents

|       |   | Our       |                                                |   |   |   |   | Scheduled      Maturities of Debt |   |
|------------|--------|-----------|-----------------------------------------------------|--------|--------|--------|--------|-----------------------------------|--------|
|       |   | Ownership |                                                |   |   |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | After |   |
|       |   | Interest  |                                                |   | Total  |   |   | 2009                              |   |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2013 |   |
| Centennial |   |      | 50%         |   |   | $      | 127.4  |                              |   | $ | 7.4 |   |   | $ | 9.1 |   |   | $ | 9.0 |   |   | $ | 8.9 |   |   | $ | 8.6 |   |   | $ | 84.4 |   |

Note 10.  Partners’ Capital andDistributions

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Table of Contents

|                                        |   | For      the Three MonthsEnded      March 31, |   |
|---------------------------------------------|--------|-----------------------------------------------|--------|
|                                        |   | 2009                                          |   |   | 2008 |   |
| Limited      Partner Units                  |   | $                                             | 76.0   |   |   | $ | 62.5 |   |
| General      Partner Ownership Interest     |   |                                          | 1.5    |   |   |   | 1.3 |   |
| General      Partner Incentive              |   |                                          | 13.9   |   |   |   | 11.1 |   |
| Total      Cash Distributions Paid          |   | $                                             | 91.4   |   |   | $ | 74.9 |   |
| Total      Cash Distributions Paid Per Unit |   | $                                             | 0.725  |   |   | $ | 0.695 |   |

|                                                                                                   |   | Distribution  |   | Record |               | Payment          |
|--------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------------|------------------|
|                                                                                                   |   | per      Unit |   | Date   |               | Date             |
| 1st      Quarter 2009 (1)                                                                              |   | $             | 0.725  |   | Apr.      30, 2009 | May      7, 2009 |
|                                                                                                   |   |          |   |   |               |             |
| (1)       The      first quarter 2009 cash distribution totaled approximately $91.4      million. |

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Table of Contents

|                                                               |   | Limited |        |   |       |   |    |   |   |
|--------------------------------------------------------------------|--------|---------|-------------|--------|------------|--------|---------|--------|--------|
|                                                               |   | Partner |        |   | Restricted |   |    |   |   |
|                                                               |   | Units   |        |   | Units      |   |    | Total  |   |
| Balance,      December 31, 2008                                    |   |    | 104,547,561 |   |       |   | 157,300 |   |   |   | 104,704,861 |   |
|           Units issued in connection with DRIP |   |    | 63,048      |   |       |   | --      |   |   |   | 63,048 |   |
|           Units issued in connection with EUPP |   |    | 7,507       |   |       |   | --      |   |   |   | 7,507 |   |
|           Forfeiture of restricted units       |   |    | --          |   |       |   | (8,100  | )      |   |   | (8,100 | ) |
| Balance,      March 31, 2009                                       |   |    | 104,618,116 |   |       |   | 149,200 |   |   |   | 104,767,316 |   |

Note 11.  Business Segments

| §   | Our      Downstream Segment, which is engaged in the pipeline transportation,      marketing and storage of refined products, LPGs and      petrochemicals; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Our      Upstream Segment, which is engaged in the gathering, pipeline      transportation, marketing and storage of crude oil, distribution of      lubrication oils and specialty chemicals and fuel transportation      services; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Our      Midstream Segment, which is engaged in the gathering of natural gas,      fractionation of NGLs and pipeline transportation of NGLs;      and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Our      Marine Services Segment, which is engaged in the marine transportation of      refined products, crude oil, condensate, asphalt, heavy fuel oil and other      heated oil products via tow boats and tank  barges. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                        |                                                                                                         | For      the Three Months |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                        |                                                                                                         | Ended      March 31,      |
|                                                                        |                                                                                                         | 2009                      |   |   | 2008 |
| Total      operating revenues                                               | $              1,457.6                 |                      |   | $                 2,808.5 |
| Less: Total      costs and expenses                                    | 1,371.9                                                                                                      |                      |   | 2,725.0 |
|         Operating income                                          | 85.7                                                                                                         |                      |   | 83.5 |
| Add: Equity      in earnings of unconsolidated affiliates              | 25.1                                                                                                         |                      |   | 19.7 |
|           Other,      net | 0.3                                                                                                          |                      |   | 0.3 |
| Earnings      before interest expense and provision for income taxes        | $                 111.1 |                      |   | $                  103.5 |

|                                                                 |   | For      the Three Months |   |
|----------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                 |   | Ended      March 31,      |   |
|                                                                 |   | 2009                      |   |   | 2008 |   |
| Earnings      before interest expense and provision for income taxes |   | $                         | 111.1  |   |   | $ | 103.5 |   |
| Interest      expense                                                |   |                      | (32.1  | ) |   |   | (38.6 | ) |
|   Income      before provision for income taxes            |   |                      | 79.0   |   |   |   | 64.9 |   |
| Provision      for income taxes                                      |   |                      | 0.8    |   |   |   | 0.8 |   |
|     Net      income                              |   | $                         | 78.2   |   |   | $ | 64.1 |   |

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Table of Contents

|                                                                      |   | Reportable      Segments |    |   |     |   |    |      |   |
|---------------------------------------------------------------------------|--------|--------------------------|---------|--------|----------|--------|---------|-----------|--------|
|                                                                      |   |                     |    |   |     |   |    |      |   |   | Marine |   |   |   |   |   |   |   |
|                                                                      |   | Downstream               |    |   | Upstream |   |    | Midstream |   |   | Services |   |   | Partnership |   |   |   |   |
|                                                                      |   | Segment                  |    |   | Segment  |   |    | Segment   |   |   | Segment |   |   | and      Other |   |   | Consolidated |   |
| Revenues      from third parties:                                         |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   | $                        | 76.6    |   |     | $      | 1,296.1 |      |   | $ | 25.2 |   |   | $ | 36.9 |   |   | $ | -- |   |   | $ | 1,434.8 |   |
| Three      months ended March 31, 2008                                    |   |                     | 94.5    |   |     |   | 2,655.1 |      |   |   | 26.6 |   |   |   | 25.5 |   |   |   | -- |   |   |   | 2,801.7 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from related parties:                                       |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   |                     | 18.9    |   |     |   | 0.1     |      |   |   | 3.8 |   |   |   | -- |   |   |   | -- |   |   |   | 22.8 |   |
| Three      months ended March 31, 2008                                    |   |                     | 3.1     |   |     |   | 0.2     |      |   |   | 3.5 |   |   |   | -- |   |   |   | (0.1 | ) |   |   | 6.7 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      revenues:                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   |                     | 95.5    |   |     |   | 1,296.2 |      |   |   | 29.0 |   |   |   | 36.9 |   |   |   | -- |   |   |   | 1,457.6 |   |
| Three      months ended March 31, 2008                                    |   |                     | 97.7    |   |     |   | 2,655.3 |      |   |   | 30.1 |   |   |   | 25.5 |   |   |   | (0.1 | ) |   |   | 2,808.5 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization:                                       |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   |                     | 11.5    |   |     |   | 5.6     |      |   |   | 9.5 |   |   |   | 6.4 |   |   |   | -- |   |   |   | 33.0 |   |
| Three      months ended March 31, 2008                                    |   |                     | 10.2    |   |     |   | 4.8     |      |   |   | 9.6 |   |   |   | 3.7 |   |   |   | -- |   |   |   | 28.3 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income:                                                    |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   |                     | 34.4    |   |     |   | 40.9    |      |   |   | 4.5 |   |   |   | 5.2 |   |   |   | 0.7 |   |   |   | 85.7 |   |
| Three      months ended March 31, 2008                                    |   |                     | 36.3    |   |     |   | 29.3    |      |   |   | 8.4 |   |   |   | 6.6 |   |   |   | 2.9 |   |   |   | 83.5 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings (losses) of unconsolidated  affiliates: |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   |                     | (3.1    | )      |     |   | 3.3     |      |   |   | 25.6 |   |   |   | -- |   |   |   | (0.7 | ) |   |   | 25.1 |   |
| Three      months ended March 31, 2008                                    |   |                     | (4.1    | )      |     |   | 3.0     |      |   |   | 23.7 |   |   |   | -- |   |   |   | (2.9 | ) |   |   | 19.7 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      before interest expense and provision                       |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for      income taxes:                                                    |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   |                     | 31.6    |   |     |   | 44.2    |      |   |   | 30.1 |   |   |   | 5.2 |   |   |   | -- |   |   |   | 111.1 |   |
| Three      months ended March 31, 2008                                    |   |                     | 32.4    |   |     |   | 32.3    |      |   |   | 32.2 |   |   |   | 6.6 |   |   |   | -- |   |   |   | 103.5 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      expenditures:                                                |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2009                                    |   |                     | 78.1    |   |     |   | 11.4    |      |   |   | 4.2 |   |   |   | 7.2 |   |   |   | 0.7 |   |   |   | 101.6 |   |
| Year      ended December 31, 2008                                         |   |                     | 209.8   |   |     |   | 33.4    |      |   |   | 5.2 |   |   |   | 43.6 |   |   |   | 8.5 |   |   |   | 300.5 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment      assets:                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      March 31, 2009                                                    |   |                     | 1,387.9 |   |     |   | 1,482.1 |      |   |   | 1,536.0 |   |   |   | 647.9 |   |   |   | (11.2 | ) |   |   | 5,042.7 |   |
| At      December 31, 2008                                                 |   |                     | 1,320.9 |   |     |   | 1,586.3 |      |   |   | 1,529.1 |   |   |   | 653.3 |   |   |   | (39.8 | ) |   |   | 5,049.8 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments      in unconsolidated affiliates:                            |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      March 31, 2009                                                    |   |                     | 61.8    |   |     |   | 218.3   |      |   |   | 955.9 |   |   |   | -- |   |   |   | 8.8 |   |   |   | 1,244.8 |   |
| At      December 31, 2008                                                 |   |                     | 63.2    |   |     |   | 226.0   |      |   |   | 957.7 |   |   |   | -- |   |   |   | 9.0 |   |   |   | 1,255.9 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible      assets, net:                                              |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      March 31, 2009                                                    |   |                     | 6.7     |   |     |   | 8.0     |      |   |   | 127.1 |   |   |   | 60.5 |   |   |   | -- |   |   |   | 202.3 |   |
| At      December 31, 2008                                                 |   |                     | 5.4     |   |     |   | 8.1     |      |   |   | 131.6 |   |   |   | 62.6 |   |   |   | -- |   |   |   | 207.7 |   |
|                                                                      |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill:                                                                 |   |                     |    |   |     |   |    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      March 31, 2009                                                    |   |                     | 1.3     |   |     |   | 14.9    |      |   |   | -- |   |   |   | 90.4 |   |   |   | -- |   |   |   | 106.6 |   |
| At      December 31, 2008                                                 |   |                     | 1.3     |   |     |   | 14.9    |      |   |   | -- |   |   |   | 90.4 |   |   |   | -- |   |   |   | 106.6 |   |

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Table of Contents

Note 12.  Related Party Transactions

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | For      the Three Months |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Ended      March 31,      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2009                      |   |   | 2008 |   |
| Revenues      from EPCO and affiliates:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      |   |   |   |   |
|         Sales of petroleum products (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                         | 0.1    |   |   | $ | 0.6 |   |
|         Transportation – NGLs (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      | 3.8    |   |   |   | 3.4 |   |
|         Transportation – LPGs (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      | 4.9    |   |   |   | 2.3 |   |
|         Other operating revenues (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                      | 14.0   |   |   |   | 0.4 |   |
|                 Related party      revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                         | 22.8   |   |   | $ | 6.7 |   |
| Costs      and Expenses from EPCO and affiliates:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |   |   |   |   |   |
|         Purchases of petroleum products (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                         | 26.7   |   |   | $ | 19.7 |   |
|         Operating expense (6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      | 28.6   |   |   |   | 26.1 |   |
|         General and administrative (7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      | 8.1    |   |   |   | 8.5 |   |
| Costs      and Expenses from unconsolidated affiliates:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      |   |   |   |   |   |   |
|         Purchases of petroleum products (8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      | (0.7   | ) |   |   | 1.6 |   |
|         Operating expense (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      | 1.6    |   |   |   | 2.3 |   |
| Costs      and Expenses from Cenac and affiliates:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      |   |   |   |   |   |   |
|         Operating expense (10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                      | 13.4   |   |   |   | 7.4 |   |
|         General and administrative (11)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      | 1.1    |   |   |   | 0.5 |   |
|                 Related party costs and    expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                         | 78.8   |   |   | $ | 66.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      |   |   |   |   |   |   |
| (1)        Includes      sales from Lubrication Services, LLC (“LSI”) to Enterprise Products      Partners and certain of its subsidiaries.(2)        Includes      revenues from NGL transportation on the Chaparral Pipeline Company, LLC      and Quanah Pipeline Company, LLC (collectively referred to as “Chaparral”      or “Chaparral NGL system”) and Panola Pipeline Company, LLC (“Panola      Pipeline") NGL pipelines from Enterprise Products Partners and certain of      its subsidiaries.(3)        Includes      revenues from LPG transportation on the TE Products pipeline from      Enterprise Products Partners and certain of its      subsidiaries.(4)       Includes      sales of product inventory from TE Products to Enterprise Products      Partners and other operating revenues on the TE Products pipeline from      Enterprise Products Partners and certain of its subsidiaries.(5)        Includes      TEPPCO Crude Oil, LLC (“TCO”) purchases of petroleum products of $20.6      million and $15.6 million for the three months ended March 31, 2009 and      2008, respectively, from Enterprise Products Partners and certain of its      subsidiaries.(6)        Includes      operating payroll, payroll related expenses and other operating expenses,      including reimbursements related to employee benefits and employee benefit      plans, incurred by EPCO in managing us and our subsidiaries in accordance      with the ASA and expenses related to Chaparral’s use of transportation      services of a subsidiary of Enterprise Products Partners. Also      includes insurance expense for the three months ended March 31, 2009 and      2008, respectively, of $3.2 million and $2.9 million, related to premiums      paid by EPCO on our behalf. The majority of our insurance coverage,      including property, liability, business interruption, auto and directors’      and officers’ liability insurance, is obtained through EPCO.(7)        Includes      administrative payroll, payroll related expenses and other administrative      expenses, including reimbursements related to employee benefits and      employee benefit plans, incurred by EPCO in managing and operating us and      our subsidiaries in accordance with the ASA.(8)        Includes      TCO purchases of petroleum products from Jonah and Seaway and pipeline      transportation expense from Seaway.(9)        Includes      rental expense and other operating expense.(10) Includes      reimbursement for operating payroll, payroll related expenses, certain      repairs and maintenance expenses and insurance premiums on our equipment      under the transitional operating agreement with Cenac Towing Co., Inc. and      Cenac Offshore, L.L.C. and Mr. Arlen B. Cenac, Jr., the sole owner of      Cenac Towing Co., Inc. and Cenac Offshore, L.L.C. (collectively, “Cenac”)      pursuant to which, our fleet of acquired tow boats and tank barges      (including those acquired from Horizon Maritime, L.L.C. (“Horizon”)) are      operated by employees of Cenac for a period of up to two years following      the acquisition.(11) Includes      reimbursement for administrative payroll and payroll related expenses, as      well as payment of a $42 thousand monthly service fee and a 5% overhead      fee charged on direct costs incurred by Cenac to operate the marine assets      in accordance with the transitional operating agreement. |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | March      31, |   |   | December      31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2009           |   |   | 2008              |   |
| Accounts      receivable, related parties (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $              | 10.7   |   |              | $      | 15.8 |   |
| Accounts      payable, related parties (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           | 20.6   |   |              |   | 17.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |   |   |              |   |   |   |
| (1)       Relates      to sales and transportation services provided to Enterprise Products      Partners and certain of its subsidiaries and EPCO and certain of its      affiliates and direct payroll, payroll related costs and other operational      expenses charged to unconsolidated affiliates.(2)       Relates      to direct payroll, payroll related costs and other operational related      charges from Enterprise Products Partners and certain of its subsidiaries      and EPCO and certain of its affiliates, transportation and other services      provided by unconsolidated affiliates, advances from Seaway for operating      expenses and $3.9 million related to operational related charges from      Cenac. |   |

|        §   | EPCO      and its privately-heldsubsidiaries; |
|--------------------------------|-----------------------------------------------|

| §   | Texas      Eastern Products Pipeline Company, LLC, our General    Partner; |
|--------------------|----------------------------------------------------------------------------|

| §   | Enterprise      GP Holdings, which owns and controls our General  Partner; |
|--------------------|----------------------------------------------------------------------------|

| §   | Enterprise      Products Partners, which is controlled by affiliates of EPCO, including      Enterprise GP Holdings; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| §   | Duncan      Energy Partners, which is controlled by affiliates of  EPCO; |
|--------------------|--------------------------------------------------------------------------|

| §   | Enterprise      Gas Processing LLC, which is controlled by affiliates of EPCO and is our      joint venture partner in Jonah; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| §   | Enterprise      Offshore Port System, LLC, which is controlled by affiliates of EPCO and      was one of our partners in Texas Offshore Port System;  and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      Employee Partnerships, which are controlled by EPCO (see Note      3). |
|--------------------|---------------------------------------------------------------------------------|

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Note 13.  Earnings Per Unit

|                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    | For      the Three Months |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    | Ended      March 31,      |
|                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    | 2009                      |   |   | 2008 |
| Net      income attributable to TEPPCO Partners, L.P.                                                                                                                                                                                                                                                                                                                  | $                   78.2 |                      |   | $                   64.1 |
|                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    |                      |   |   |
| Distributions Declared During      Quarter:                                                                                                                                                                                                                                                                                                                            |                                                                                                                    |                      |   |   |
| Distributions      to General Partner (including incentive distributions)                                                                                                                                                                                                                                                                                              | $                   15.4 |                      |   | $                   13.6 |
| Distributions      to limited partners                                                                                                                                                                                                                                                                                                                                 | 76.0                                                                                                                    |                      |   | 67.3 |
| Total      distributions declared during quarter                                                                                                                                                                                                                                                                                                                       | $                   91.4 |                      |   | $                   80.9 |
|                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    |                      |   |   |
| Excess      of distributions over net income                                                                                                                                                                                                                                                                                                                           | $                (13.2)                 |                      |   | $                (16.8) |
| General      Partner’s interest in net income                                                                                                                                                                                                                                                                                                                    | 16.93%                                                                                                                  |                      |   | 16.74% |
| Earnings      allocation adjustment to General Partner under EITF 07-4    (1)                                                                                                                                                                                                                                                                                          | $                  (2.2)      |                      |   | $                  (2.9) |
|                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    |                      |   |   |   |
| Distributions      to General Partner (including incentive distributions)                                                                                                                                                                                                                                                                                              | $                   15.4 |                      |   | $                  13.6 |
| Earnings      allocation adjustment to General Partner under EITF 07-4                                                                                                                                                                                                                                                                                                 | (2.2)                                                                                                                   |                      |   | (2.9) |
| Net      income available to our General Partner                                                                                                                                                                                                                                                                                                                       | $                   13.2 |                      |   | $                  10.7 |
|                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    |                      |   |   |   |
| (1)        For      purposes of computing basic and diluted earnings per Unit, we used the      provisions of EITF 07-4, Application of the Two-Class      Method under FASB Statement No. 128 to Master Limited      Partnerships. Our earnings are allocated on a basis consistent      with distributions declared during the quarter (see Note 10). |

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|                                                         |   | For      the Three Months |   |
|--------------------------------------------------------------|--------|---------------------------|--------|
|                                                         |   | Ended      March 31,      |   |
|                                                         |   | 2009                      |   |   | 2008 |   |
| BASIC      EARNINGS PER UNIT:                                |   |                      |   |   |   |   |
|   Numerator:                                       |   |                      |   |   |   |   |
|        Limited partners’ interest in net income   |   | $                         | 65.0   |   |   | $ | 53.4 |   |
|                                                         |   |                      |   |   |   |   |   |   |
|   Denominator:                                     |   |                      |   |   |   |   |   |   |
|        Weighted average Units                           |   |                      | 104.6  |   |   |   | 93.1 |   |
|        Weighted average time-vested restricted units    |   |                      | 0.1    |   |   |   | 0.1 |   |
|           Total                          |   |                      | 104.7  |   |   |   | 93.2 |   |
|                                                         |   |                      |   |   |   |   |   |   |
|   Basic earnings per      Unit:                    |   |                      |   |   |   |   |   |   |
|        Net income attributable to TEPPCO Partners, L.P. |   | $                         | 0.75   |   |   | $ | 0.69 |   |
|        General Partner’s interest in net income   |   |                      | (0.13  | ) |   |   | (0.12 | ) |
|        Limited partners’ interest in net income   |   | $                         | 0.62   |   |   | $ | 0.57 |   |
|                                                         |   |                      |   |   |   |   |   |   |
| DILUTED      EARNINGS PER UNIT:                              |   |                      |   |   |   |   |   |   |
|   Numerator:                                       |   |                      |   |   |   |   |   |   |
|        Limited partners’ interest in net income   |   | $                         | 65.0   |   |   | $ | 53.4 |   |
|                                                         |   |                      |   |   |   |   |   |   |
|   Denominator:                                     |   |                      |   |   |   |   |   |   |
|        Weighted average Units                           |   |                      | 104.6  |   |   |   | 93.1 |   |
|        Weighted average time-vested restricted units    |   |                      | 0.1    |   |   |   | 0.1 |   |
|        Weighted average incremental option units        |   |                      | *      |   |   |   | -- |   |
|           Total                          |   |                      | 104.7  |   |   |   | 93.2 |   |
|                                                         |   |                      |   |   |   |   |   |   |
|   Diluted earnings per      Unit:                  |   |                      |   |   |   |   |   |   |
|        Net income attributable to TEPPCO Partners, L.P. |   | $                         | 0.75   |   |   | $ | 0.69 |   |
|        General Partner’s interest in net income   |   |                      | (0.13  | ) |   |   | (0.12 | ) |
|        Limited partners’ interest in net income   |   | $                         | 0.62   |   |   | $ | 0.57 |   |
|                                                         |   |                      |   |   |   |   |   |   |
| *Amount      is negligible.                                  |   |

Note 14.  Commitments and Contingencies

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Note 15.  Supplemental Cash FlowInformation

|                                                                                                                                                                       |   | For      the Three Months |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                                                                                                       |   | Ended      March 31,      |   |
|                                                                                                                                                                       |   | 2009                      |   |   | 2008 |   |
| Decrease      (increase) in:                                                                                                                                               |   |                      |   |   |   |   |
| Accounts      receivable, trade                                                                                                                                            |   | $                         | 48.7   |   |   | $ | (189.2 | ) |
| Accounts      receivable, related parties                                                                                                                                  |   |                      | 5.9    |   |   |   | 1.5 |   |
| Inventories                                                                                                                                                                |   |                      | 0.3    |   |   |   | (7.2 | ) |
| Other      current assets                                                                                                                                                  |   |                      | 1.1    |   |   |   | (2.8 | ) |
| Other                                                                                                                                                                      |   |                      | 0.3    |   |   |   | (4.3 | ) |
| Increase      (decrease) in:                                                                                                                                               |   |                      |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities                                                                                                                              |   |                      | (28.9  | ) |   |   | 157.7 |   |
| Accounts      payable, related parties                                                                                                                                     |   |                      | 3.5    |   |   |   | (6.9 | ) |
| Other                                                                                                                                                                      |   |                      | (8.4   | ) |   |   | (11.5 | ) |
| Net      effect of changes in operating accounts                                                                                                                           |   | $                         | 22.5   |   |   | $ | (62.7 | ) |
|                                                                                                                                                                       |   |                      |   |   |   |   |   |   |
| Non-cash      investing activities:                                                                                                                                        |   |                      |   |   |   |   |   |   |
|    Payable      to Enterprise Gas Processing, LLC for spending for      Phase      V expansion of Jonah Gas Gathering Company |   | $                         | 0.2    |   |   | $ | 7.4 |   |
|    Liabilities      for construction work in progress                                                                                                       |   | $                         | 18.2   |   |   | $ | 16.6 |   |
| Non-cash      financing activities:                                                                                                                                        |   |                      |   |   |   |   |   |   |
|    Issuance      of Units in Cenac acquisition                                                                                                              |   | $                         | --     |   |   | $ | 186.6 |   |
| Supplemental      disclosure of cash flows:                                                                                                                                |   |                      |   |   |   |   |   |   |
|    Cash      paid for interest (net of amounts capitalized)                                                                                                 |   | $                         | 22.1   |   |   | $ | 47.4 |   |

Note 16.  Supplemental Condensed Consolidating FinancialInformation

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|                                                                       |   | March      31, 2009        |    |
|----------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                       |   | TEPPCO      Partners, L.P. |    |   | Guarantor      Subsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | TEPPCO      Partners, L.P. Consolidated |   |
| Assets                                                                     |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      assets                                                        |   | $                          | 15.6    |   |   | $ | 78.8 |   |   | $ | 1,171.0 |   |   | $ | (424.9 | ) |   | $ | 840.5 |   |
| Property,      plant and equipment – net                             |   |                       | 13.6    |   |   |   | 1,360.9 |   |   |   | 1,142.7 |   |   |   | -- |   |   |   | 2,517.2 |   |
| Investments      in unconsolidated affiliates                              |   |                       | 8.8     |   |   |   | 1,017.7 |   |   |   | 218.3 |   |   |   | -- |   |   |   | 1,244.8 |   |
| Investments      in consolidated affiliates                                |   |                       | 1,673.0 |   |   |   | 441.6 |   |   |   | -- |   |   |   | (2,114.6 | ) |   |   | -- |   |
| Goodwill                                                                   |   |                       | --      |   |   |   | -- |   |   |   | 106.6 |   |   |   | -- |   |   |   | 106.6 |   |
| Intercompany      notes receivable                                         |   |                       | 2,789.1 |   |   |   | -- |   |   |   | -- |   |   |   | (2,789.1 | ) |   |   | -- |   |
| Intangible      assets                                                     |   |                       | --      |   |   |   | 115.3 |   |   |   | 87.0 |   |   |   | -- |   |   |   | 202.3 |   |
| Other      assets                                                          |   |                       | 13.9    |   |   |   | 33.2 |   |   |   | 84.2 |   |   |   | -- |   |   |   | 131.3 |   |
|     Total      assets                                  |   | $                          | 4,514.0 |   |   | $ | 3,047.5 |   |   | $ | 2,809.8 |   |   | $ | (5,328.6 | ) |   | $ | 5,042.7 |   |
| Liabilities      and partners’ capital                               |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      liabilities                                                   |   | $                          | 345.6   |   |   | $ | 149.6 |   |   | $ | 784.1 |   |   | $ | (424.9 | ) |   | $ | 854.4 |   |
| Long-term      debt                                                        |   |                       | 2,577.3 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 2,577.3 |   |
| Intercompany      notes payable                                            |   |                       | --      |   |   |   | 1,503.6 |   |   |   | 1,285.5 |   |   |   | (2,789.1 | ) |   |   | -- |   |
| Other      long-term liabilities                                           |   |                       | 8.6     |   |   |   | 16.9 |   |   |   | 3.0 |   |   |   | -- |   |   |   | 28.5 |   |
| Total      partners’ capital                                         |   |                       | 1,582.5 |   |   |   | 1,377.4 |   |   |   | 737.2 |   |   |   | (2,114.6 | ) |   |   | 1,582.5 |   |
|     Total      liabilities and partners’ capital |   | $                          | 4,514.0 |   |   | $ | 3,047.5 |   |   | $ | 2,809.8 |   |   | $ | (5,328.6 | ) |   | $ | 5,042.7 |   |

|                                                                 |   | December      31, 2008     |    |
|----------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                 |   | TEPPCO      Partners, L.P. |    |   | Guarantor      Subsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | TEPPCO      Partners, L.P. Consolidated |   |
| Assets                                                               |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      assets                                                  |   | $                          | 23.1    |   |   | $ | 145.2 |   |   | $ | 1,148.0 |   |   | $ | (408.7 | ) |   | $ | 907.6 |   |
| Property,      plant and equipment – net                       |   |                       | 13.5    |   |   |   | 1,294.8 |   |   |   | 1,131.6 |   |   |   | -- |   |   |   | 2,439.9 |   |
| Investments      in unconsolidated affiliates                        |   |                       | 9.0     |   |   |   | 1,020.9 |   |   |   | 226.0 |   |   |   | -- |   |   |   | 1,255.9 |   |
| Investments      in consolidated affiliates                          |   |                       | 1,686.0 |   |   |   | 399.0 |   |   |   | -- |   |   |   | (2,085.0 | ) |   |   | -- |   |
| Goodwill                                                             |   |                       | --      |   |   |   | -- |   |   |   | 106.6 |   |   |   | -- |   |   |   | 106.6 |   |
| Intercompany      notes receivable                                   |   |                       | 2,628.3 |   |   |   | -- |   |   |   | -- |   |   |   | (2,628.3 | ) |   |   | -- |   |
| Intangible      assets                                               |   |                       | --      |   |   |   | 118.0 |   |   |   | 89.7 |   |   |   | -- |   |   |   | 207.7 |   |
| Other      assets                                                    |   |                       | 14.4    |   |   |   | 33.3 |   |   |   | 84.4 |   |   |   | -- |   |   |   | 132.1 |   |
|    Total      assets                                  |   | $                          | 4,374.3 |   |   | $ | 3,011.2 |   |   | $ | 2,786.3 |   |   | $ | (5,122.0 | ) |   | $ | 5,049.8 |   |
| Liabilities      and partners’ capital                         |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      liabilities                                             |   | $                          | 244.5   |   |   | $ | 215.4 |   |   | $ | 848.8 |   |   | $ | (408.7 | ) |   | $ | 900.0 |   |
| Long-term      debt                                                  |   |                       | 2,529.6 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 2,529.6 |   |
| Intercompany      notes payable                                      |   |                       | --      |   |   |   | 1,424.3 |   |   |   | 1,204.0 |   |   |   | (2,628.3 | ) |   |   | -- |   |
| Other      long-term liabilities                                     |   |                       | 8.7     |   |   |   | 17.0 |   |   |   | 3.0 |   |   |   | -- |   |   |   | 28.7 |   |
| Total      partners’ capital                                   |   |                       | 1,591.5 |   |   |   | 1,354.5 |   |   |   | 730.5 |   |   |   | (2,085.0 | ) |   |   | 1,591.5 |   |
|    Total      liabilities and partners’ capital |   | $                          | 4,374.3 |   |   | $ | 3,011.2 |   |   | $ | 2,786.3 |   |   | $ | (5,122.0 | ) |   | $ | 5,049.8 |   |

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|                                                       |   | For      the Three Months Ended March 31, 2009 |   |
|------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                       |   | TEPPCO      Partners, L.P.                     |   |   | GuarantorSubsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | TEPPCO      Partners, L.P. Consolidated |   |
| Operating      revenues                                    |   | $                                              | --     |   |   | $ | 100.7 |   |   | $ | 1,356.9 |   |   | $ | -- |   |   | $ | 1,457.6 |   |
| Costs      and expenses                                    |   |                                           | --     |   |   |   | 68.0 |   |   |   | 1,304.6 |   |   |   | (0.7 | ) |   |   | 1,371.9 |   |
|         Operating income                         |   |                                           | --     |   |   |   | 32.7 |   |   |   | 52.3 |   |   |   | 0.7 |   |   |   | 85.7 |   |
| Interest      expense                                      |   |                                           | --     |   |   |   | (20.3 | ) |   |   | (11.8 | ) |   |   | -- |   |   |   | (32.1 | ) |
| Equity      in earnings of unconsolidated affiliates       |   |                                           | 78.2   |   |   |   | 65.4 |   |   |   | 3.3 |   |   |   | (121.8 | ) |   |   | 25.1 |   |
| Other,      net                                            |   |                                           | --     |   |   |   | 0.3 |   |   |   | -- |   |   |   | -- |   |   |   | 0.3 |   |
|         Income before provision for income taxes |   |                                           | 78.2   |   |   |   | 78.1 |   |   |   | 43.8 |   |   |   | (121.1 | ) |   |   | 79.0 |   |
| Provision      for income taxes                            |   |                                           | --     |   |   |   | 0.3 |   |   |   | 0.5 |   |   |   | -- |   |   |   | 0.8 |   |
|         Net income                               |   | $                                              | 78.2   |   |   | $ | 77.8 |   |   | $ | 43.3 |   |   | $ | (121.1 | ) |   | $ | 78.2 |   |

|                                                       |   | For      the Three Months Ended March 31, 2008 |   |
|------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                       |   | TEPPCO      Partners, L.P.                     |   |   | GuarantorSubsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | TEPPCO      Partners, L.P. Consolidated |   |
| Operating      revenues                                    |   | $                                              | --     |   |   | $ | 102.9 |   |   | $ | 2,705.6 |   |   | $ | -- |   |   | $ | 2,808.5 |   |
| Costs      and expenses                                    |   |                                           | --     |   |   |   | 67.9 |   |   |   | 2,660.0 |   |   |   | (2.9 | ) |   |   | 2,725.0 |   |
|         Operating income                         |   |                                           | --     |   |   |   | 35.0 |   |   |   | 45.6 |   |   |   | 2.9 |   |   |   | 83.5 |   |
| Interest      expense                                      |   |                                           | --     |   |   |   | (26.8 | ) |   |   | (11.8 | ) |   |   | -- |   |   |   | (38.6 | ) |
| Equity      in earnings of unconsolidated affiliates       |   |                                           | 64.1   |   |   |   | 53.0 |   |   |   | 3.0 |   |   |   | (100.4 | ) |   |   | 19.7 |   |
| Other,      net                                            |   |                                           | --     |   |   |   | 0.3 |   |   |   | -- |   |   |   | -- |   |   |   | 0.3 |   |
|         Income before provision for income taxes |   |                                           | 64.1   |   |   |   | 61.5 |   |   |   | 36.8 |   |   |   | (97.5 | ) |   |   | 64.9 |   |
| Provision      for income taxes                            |   |                                           | --     |   |   |   | 0.2 |   |   |   | 0.6 |   |   |   | -- |   |   |   | 0.8 |   |
|         Net income                               |   | $                                              | 64.1   |   |   | $ | 61.3 |   |   | $ | 36.2 |   |   | $ | (97.5 | ) |   | $ | 64.1 |   |

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|                                                                                     |   | For      the Three Months Ended March 31, 2009 |   |
|------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                                     |   | TEPPCO      Partners, L.P.                     |   |   | GuarantorSubsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | TEPPCO      Partners, L.P. Consolidated |   |
| Operating      activities:                                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Net income                                                                   |   | $                                              | 78.2   |   |   | $ | 77.8 |   |   | $ | 43.3 |   |   | $ | (121.1 | ) |   | $ | 78.2 |   |
|        Adjustments to reconcile net income to net cash                              |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          from operating activities:                                       |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Depreciation and amortization                                                |   |                                           | --     |   |   |   | 17.8 |   |   |   | 15.2 |   |   |   | -- |   |   |   | 33.0 |   |
|        Equity in earnings of unconsolidated         affiliates       |   |                                           | --     |   |   |   | (22.5 | ) |   |   | (3.3 | ) |   |   | 0.7 |   |   |   | (25.1 | ) |
|        Distributions received from unconsolidated         affiliates |   |                                           | --     |   |   |   | 38.9 |   |   |   | 8.8 |   |   |   | -- |   |   |   | 47.7 |   |
|        Other, net                                                                   |   |                                           | 7.8    |   |   |   | (24.9 | ) |   |   | (88.0 | ) |   |   | 127.9 |   |   |   | 22.8 |   |
|        Net cash from operating activities                                           |   |                                           | 86.0   |   |   |   | 87.1 |   |   |   | (24.0 | ) |   |   | 7.5 |   |   |   | 156.6 |   |
| Cash      flows from investing activities:                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Investment in Jonah                                                          |   |                                           | --     |   |   |   | (12.3 | ) |   |   | -- |   |   |   | -- |   |   |   | (12.3 | ) |
|        Investment in Texas Offshore Port System                                     |   |                                           | --     |   |   |   | -- |   |   |   | 1.7 |   |   |   | -- |   |   |   | 1.7 |   |
|        Capital expenditures                                                         |   |                                           | --     |   |   |   | (77.0 | ) |   |   | (24.6 | ) |   |   | -- |   |   |   | (101.6 | ) |
|        Other, net                                                                   |   |                                           | --     |   |   |   | (1.4 | ) |   |   | -- |   |   |   | -- |   |   |   | (1.4 | ) |
|        Net cash flows from investing activities                                     |   |                                           | --     |   |   |   | (90.7 | ) |   |   | (22.9 | ) |   |   | -- |   |   |   | (113.6 | ) |
| Cash      flows from financing activities:                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Borrowings under debt agreements                                             |   |                                           | 301.8  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 301.8 |   |
|        Repayments of debt                                                           |   |                                           | (252.8 | ) |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (252.8 | ) |
|        Net proceeds from issuance of limited partner         units   |   |                                           | --     |   |   |   | -- |   |   |   | -- |   |   |   | 1.6 |   |   |   | 1.6 |   |
|        Intercompany debt activities                                                 |   |                                           | (48.9  | ) |   |   | 76.7 |   |   |   | 83.4 |   |   |   | (111.2 | ) |   |   | -- |   |
|        Distributions paid to partners                                               |   |                                           | (91.4  | ) |   |   | (73.1 | ) |   |   | (36.5 | ) |   |   | 109.6 |   |   |   | (91.4 | ) |
|        Net cash flows from financing activities                                     |   |                                           | (91.3  | ) |   |   | 3.6 |   |   |   | 46.9 |   |   |   | -- |   |   |   | (40.8 | ) |
|        Net change in cash and cash equivalents                                      |   |                                           | (5.3   | ) |   |   | -- |   |   |   | -- |   |   |   | 7.5 |   |   |   | 2.2 |   |
|        Cash and cash equivalents, January 1                                         |   |                                           | 16.1   |   |   |   | -- |   |   |   | -- |   |   |   | (16.1 | ) |   |   | -- |   |
|        Cash and cash equivalents, March 31                                          |   | $                                              | 10.8   |   |   | $ | -- |   |   | $ | -- |   |   | $ | (8.6 | ) |   | $ | 2.2 |   |

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|                                                                                                         |   | For      the Three Months Ended March 31, 2008 |     |
|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|----------|
|                                                                                                         |   | TEPPCO      Partners, L.P.                     |     |   | GuarantorSubsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Consolidating      Adjustments |   |   | TEPPCO      Partners, L.P. Consolidated |   |
| Operating      activities:                                                                                   |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |
|        Net income                                                                                       |   | $                                              | 64.1     |   |   | $ | 61.3 |   |   | $ | 36.2 |   |   | $ | (97.5 | ) |   | $ | 64.1 |   |
|        Adjustments to reconcile net income to net cash                                                  |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          from operating activities:                                                           |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Depreciation and amortization                                                                    |   |                                           | --       |   |   |   | 16.9 |   |   |   | 11.4 |   |   |   | -- |   |   |   | 28.3 |   |
|        Equity in earnings of unconsolidated         affiliates                           |   |                                           | --       |   |   |   | (19.6 | ) |   |   | (3.0 | ) |   |   | 2.9 |   |   |   | (19.7 | ) |
|        Distributions received from unconsolidated         affiliates                     |   |                                           | --       |   |   |   | 37.2 |   |   |   | -- |   |   |   | -- |   |   |   | 37.2 |   |
|        Other, net                                                                                       |   |                                           | 66.1     |   |   |   | 83.0 |   |   |   | (188.6 | ) |   |   | (11.7 | ) |   |   | (51.2 | ) |
|        Net cash from operating activities                                                               |   |                                           | 130.2    |   |   |   | 178.8 |   |   |   | (144.0 | ) |   |   | (106.3 | ) |   |   | 58.7 |   |
| Cash      flows from investing activities:                                                                   |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Cash used for business combinations                                                              |   |                                           | --       |   |   |   | -- |   |   |   | (338.5 | ) |   |   | -- |   |   |   | (338.5 | ) |
|        Investment in Jonah                                                                              |   |                                           | --       |   |   |   | (31.8 | ) |   |   | -- |   |   |   | -- |   |   |   | (31.8 | ) |
|        Capital expenditures                                                                             |   |                                           | --       |   |   |   | (42.4 | ) |   |   | (9.2 | ) |   |   | -- |   |   |   | (51.6 | ) |
|        Other, net                                                                                       |   |                                           | --       |   |   |   | (0.3 | ) |   |   | (14.3 | ) |   |   | -- |   |   |   | (14.6 | ) |
|        Net cash flows from investing activities                                                         |   |                                           | --       |   |   |   | (74.5 | ) |   |   | (362.0 | ) |   |   | -- |   |   |   | (436.5 | ) |
| Cash      flows from financing activities:                                                                   |   |                                           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Borrowings under debt agreements                                                                 |   |                                           | 2,512.6  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 2,512.6 |   |
|        Repayments of debt                                                                               |   |                                           | (1,577.1 | ) |   |   | (361.6 | ) |   |   | (63.1 | ) |   |   | -- |   |   |   | (2,001.8 | ) |
|        Net proceeds from issuance of limited partner         units                       |   |                                           | 2.7      |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 2.7 |   |
|        Debt issuance costs                                                                              |   |                                           | (8.7     | ) |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (8.7 | ) |
|        Settlement of interest rate derivative         instruments – treasury locks |   |                                           | (52.1    | ) |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (52.1 | ) |
|        Intercompany debt activities                                                                     |   |                                           | (935.5   | ) |   |   | 332.2 |   |   |   | 596.0 |   |   |   | 7.3 |   |   |   | -- |   |
|        Distributions paid to partners                                                                   |   |                                           | (74.9    | ) |   |   | (74.9 | ) |   |   | (26.9 | ) |   |   | 101.8 |   |   |   | (74.9 | ) |
|        Net cash flows from financing activities                                                         |   |                                           | (133.0   | ) |   |   | (104.3 | ) |   |   | 506.0 |   |   |   | 109.1 |   |   |   | 377.8 |   |
|        Net change in cash and cash equivalents                                                          |   |                                           | (2.8     | ) |   |   | -- |   |   |   | -- |   |   |   | 2.8 |   |   |   | -- |   |
|        Cash and cash equivalents, January 1                                                             |   |                                           | 8.2      |   |   |   | -- |   |   |   | -- |   |   |   | (8.2 | ) |   |   | -- |   |
|        Cash and cash equivalents, March 31                                                              |   | $                                              | 5.4      |   |   | $ | -- |   |   | $ | -- |   |   | $ | (5.4 | ) |   | $ | -- |   |

Note 17.  Subsequent Events

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Item 2.  Management’s Discussion and Analysisof Financial Condition and Results of Operations.

|   | /d     | =      per day                       |
|--------|--------|--------------------------------------|
|   | Mcf    | =      thousand cubic feet           |
|   | MMcf   | =      million cubic feet            |
|   | Bcf    | =      billion cubic feet            |
|   | MMBbls | =      million barrels               |
|   | MMBtus | =      million British thermal units |
|   | BBtus  | =      billion British thermalunits  |

Cautionary Note Regarding Forward-LookingStatements

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| §   | pipeline      transportation, marketing and storage of refined products, LPGs and      petrochemicals (“DownstreamSegment”); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| §   | gathering,      pipeline transportation, marketing and storage of crude oil, distribution      of lubrication oils and specialty chemicals and fuel transportation      services (“Upstream Segment”); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | gathering      of natural gas, fractionation of NGLs and pipeline transportation of NGLs      (“Midstream Segment”); and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| §   | marine      transportation of refined products, crude oil, condensate, asphalt, heavy      fuel oil and other heated oil products via tow boats and tank barges      (“Marine Services Segment”). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                  |   | For      the Three MonthsEnded      March 31, |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                                                                                                                                  |   | 2009                                          |    |   | 2008 |   |
| Operating      revenues:                                                                                                                                                              |   |                                          |    |   |   |   |
|    Downstream      Segment                                                                                                                                             |   | $                                             | 95.5    |   |   | $ | 97.7 |   |
|    Upstream      Segment                                                                                                                                               |   |                                          | 1,296.2 |   |   |   | 2,655.3 |   |
|    Midstream      Segment                                                                                                                                              |   |                                          | 29.0    |   |   |   | 30.1 |   |
|    Marine      Services Segment                                                                                                                                        |   |                                          | 36.9    |   |   |   | 25.5 |   |
|    Intersegment      eliminations                                                                                                                                      |   |                                          | --      |   |   |   | (0.1 | ) |
|       Total      operating revenues                                                                                                                     |   |                                          | 1,457.6 |   |   |   | 2,808.5 |   |
| Operating      income:                                                                                                                                                                |   |                                          |    |   |   |   |   |   |
|    Downstream      Segment                                                                                                                                             |   |                                          | 34.4    |   |   |   | 36.3 |   |
|    Upstream      Segment                                                                                                                                               |   |                                          | 40.9    |   |   |   | 29.3 |   |
|    Midstream      Segment                                                                                                                                              |   |                                          | 4.5     |   |   |   | 8.4 |   |
|    Marine      Services Segment                                                                                                                                        |   |                                          | 5.2     |   |   |   | 6.6 |   |
|    Intersegment      eliminations                                                                                                                                      |   |                                          | 0.7     |   |   |   | 2.9 |   |
|       Total      operating income                                                                                                                       |   |                                          | 85.7    |   |   |   | 83.5 |   |
| Equity      in earnings (losses) of unconsolidated affiliates:                                                                                                                        |   |                                          |    |   |   |   |   |   |
|    Downstream      Segment                                                                                                                                             |   |                                          | (3.1    | ) |   |   | (4.1 | ) |
|    Upstream      Segment                                                                                                                                               |   |                                          | 3.3     |   |   |   | 3.0 |   |
|    Midstream      Segment                                                                                                                                              |   |                                          | 25.6    |   |   |   | 23.7 |   |
|    Intersegment      eliminations                                                                                                                                      |   |                                          | (0.7    | ) |   |   | (2.9 | ) |
|       Total      equity in earnings of unconsolidated affiliates                                                                                        |   |                                          | 25.1    |   |   |   | 19.7 |   |
| Earnings      before interest: (1)                                                                                                                                                    |   |                                          |    |   |   |   |   |   |
|    Downstream      Segment                                                                                                                                             |   |                                          | 31.6    |   |   |   | 32.4 |   |
|    Upstream      Segment                                                                                                                                               |   |                                          | 44.2    |   |   |   | 32.3 |   |
|    Midstream      Segment                                                                                                                                              |   |                                          | 30.1    |   |   |   | 32.2 |   |
|    Marine      Services Segment                                                                                                                                        |   |                                          | 5.2     |   |   |   | 6.6 |   |
|                                                                                                                                                                                  |   |                                          |    |   |   |   |   |   |
| Interest      expense                                                                                                                                                                 |   |                                          | (32.1   | ) |   |   | (38.6 | ) |
|    Income      before provision for income taxes                                                                                                                       |   |                                          | 79.0    |   |   |   | 64.9 |   |
| Provision      for income taxes                                                                                                                                                       |   |                                          | 0.8     |   |   |   | 0.8 |   |
|        Net      income                                                                                                                             |   | $                                             | 78.2    |   |   | $ | 64.1 |   |
|                                                                                                                                                                                  |   |                                          |    |   |   |   |   |   |
| (1)        See      Note 11 in the Notes to Unaudited Condensed Consolidated Financial      Statements for a reconciliation of earnings before interest to net      income. |   |

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|                                                        |   | For      the Three Months |   |   |     |   |
|-------------------------------------------------------------|--------|---------------------------|--------|--------|----------|--------|
|                                                        |   | Ended      March 31,      |   |   | Increase |   |
|                                                        |   | 2009                      |   |   | 2008     |   |   | (Decrease) |   |
| Operating      revenues:                                    |   |                      |   |   |     |   |   |   |   |
| Sales      of petroleum products                            |   | $                         | 6.7    |   |     | $      | 7.0 |   |   | $ | (0.3 | ) |
| Transportation      – Refined products                |   |                      | 35.9   |   |     |   | 37.3 |   |   |   | (1.4 | ) |
| Transportation      – LPGs                            |   |                      | 38.3   |   |     |   | 36.2 |   |   |   | 2.1 |   |
| Other                                                       |   |                      | 14.6   |   |     |   | 17.2 |   |   |   | (2.6 | ) |
|      Total      operating revenues |   |                      | 95.5   |   |     |   | 97.7 |   |   |   | (2.2 | ) |
|                                                        |   |                      |   |   |     |   |   |   |   |   |   |   |
| Costs      and expenses:                                    |   |                      |   |   |     |   |   |   |   |   |   |   |
| Purchases      of petroleum products                        |   |                      | 6.6    |   |     |   | 6.9 |   |   |   | (0.3 | ) |
| Operating      expense                                      |   |                      | 24.9   |   |     |   | 26.9 |   |   |   | (2.0 | ) |
| Operating      fuel and power                               |   |                      | 11.0   |   |     |   | 10.5 |   |   |   | 0.5 |   |
| General      and administrative                             |   |                      | 3.7    |   |     |   | 3.7 |   |   |   | -- |   |
| Depreciation      and amortization                          |   |                      | 11.5   |   |     |   | 10.2 |   |   |   | 1.3 |   |
| Taxes      – other than income taxes                  |   |                      | 3.4    |   |     |   | 3.2 |   |   |   | 0.2 |   |
|      Total      costs and expenses |   |                      | 61.1   |   |     |   | 61.4 |   |   |   | (0.3 | ) |
|                                                        |   |                      |   |   |     |   |   |   |   |   |   |   |
| Operating      income                                       |   |                      | 34.4   |   |     |   | 36.3 |   |   |   | (1.9 | ) |
|                                                        |   |                      |   |   |     |   |   |   |   |   |   |   |
| Equity      in losses of unconsolidated affiliates          |   |                      | (3.1   | )      |     |   | (4.1 | ) |   |   | 1.0 |   |
| Other,      net                                             |   |                      | 0.3    |   |     |   | 0.2 |   |   |   | 0.1 |   |
|                                                        |   |                      |   |   |     |   |   |   |   |   |   |   |
| Earnings      before interest                               |   | $                         | 31.6   |   |     | $      | 32.4 |   |   | $ | (0.8 | ) |

|                                                                            |   | For      the Three Months |   |   | Percentage |   |
|---------------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------|--------|
|                                                                            |   | Ended      March 31,      |   |   | Increase   |   |
|                                                                            |   | 2009                      |   |   | 2008       |   |   | (Decrease) |   |
| Volumes      Delivered:                                                         |   |                      |   |   |       |   |   |   |   |
|    Refined      products                                         |   |                      | 36.6   |   |       |   | 38.5 |   |   |   | (5%) |
|    LPGs                                                          |   |                      | 12.6   |   |       |   | 12.9 |   |   |   | (2%) |
|    Total                                                         |   |                      | 49.2   |   |       |   | 51.4 |   |   |   | (4%) |
|                                                                            |   |                      |   |   |       |   |   |   |   |   |   |   |
| Average      Tariff per Barrel:                                                 |   |                      |   |   |       |   |   |   |   |   |   |   |
|    Refined      products                                         |   | $                         | 0.98   |   |       | $      | 0.97 |   |   |   | 1% |
|    LPGs                                                          |   |                      | 3.05   |   |       |   | 2.81 |   |   |   | 9% |
|        Average      system tariff per barrel |   |                      | 1.51   |   |       |   | 1.43 |   |   |   | 6% |

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|                                                                                                                                                                                                                                                                                  |   | For      the Three Months |    |   |     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                  |   | Ended      March 31,      |    |   | Increase |   |
|                                                                                                                                                                                                                                                                                  |   | 2009                      |    |   | 2008     |   |   | (Decrease) |   |
| Operating      revenues: (1)                                                                                                                                                                                                                                                          |   |                      |    |   |     |   |   |   |   |
| Sales      of petroleum products (2)                                                                                                                                                                                                                                                  |   | $                         | 1,271.2 |   |     | $      | 2,637.7 |   |   | $ | (1,366.5 | ) |
| Transportation      – Crude oil                                                                                                                                                                                                                                                 |   |                      | 21.9    |   |     |   | 15.3 |   |   |   | 6.6 |   |
| Other                                                                                                                                                                                                                                                                                 |   |                      | 3.1     |   |     |   | 2.3 |   |   |   | 0.8 |   |
|      Total      operating revenues                                                                                                                                                                                                                           |   |                      | 1,296.2 |   |     |   | 2,655.3 |   |   |   | (1,359.1 | ) |
|                                                                                                                                                                                                                                                                                  |   |                      |    |   |     |   |   |   |   |   |   |   |
| Costs      and expenses: (1)                                                                                                                                                                                                                                                          |   |                      |    |   |     |   |   |   |   |   |   |   |
| Purchases      of petroleum products (2)                                                                                                                                                                                                                                              |   |                      | 1,229.6 |   |     |   | 2,602.7 |   |   |   | (1,373.1 | ) |
| Operating      expense                                                                                                                                                                                                                                                                |   |                      | 14.6    |   |     |   | 13.3 |   |   |   | 1.3 |   |
| Operating      fuel and power                                                                                                                                                                                                                                                         |   |                      | 1.8     |   |     |   | 1.7 |   |   |   | 0.1 |   |
| General      and administrative                                                                                                                                                                                                                                                       |   |                      | 1.9     |   |     |   | 1.8 |   |   |   | 0.1 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                    |   |                      | 5.6     |   |     |   | 4.8 |   |   |   | 0.8 |   |
| Taxes      – other than income taxes                                                                                                                                                                                                                                            |   |                      | 1.8     |   |     |   | 1.7 |   |   |   | 0.1 |   |
|      Total      costs and expenses                                                                                                                                                                                                                           |   |                      | 1,255.3 |   |     |   | 2,626.0 |   |   |   | (1,370.7 | ) |
|                                                                                                                                                                                                                                                                                  |   |                      |    |   |     |   |   |   |   |   |   |   |
| Operating      income                                                                                                                                                                                                                                                                 |   |                      | 40.9    |   |     |   | 29.3 |   |   |   | 11.6 |   |
|                                                                                                                                                                                                                                                                                  |   |                      |    |   |     |   |   |   |   |   |   |   |
| Equity      in earnings of unconsolidated affiliates                                                                                                                                                                                                                                  |   |                      | 3.3     |   |     |   | 3.0 |   |   |   | 0.3 |   |
|                                                                                                                                                                                                                                                                                  |   |                      |    |   |     |   |   |   |   |   |   |   |
| Earnings      before interest                                                                                                                                                                                                                                                         |   | $                         | 44.2    |   |     | $      | 32.3 |   |   | $ | 11.9 |   |
|                                                                                                                                                                                                                                                                                  |   |                      |    |   |     |   |   |   |   |   |   |   |
| (1)       Amounts      in this table are presented after elimination of intercompany      transactions, including sales and purchases of petroleum      products.(2)        Petroleum      products includes crude oil, lubrication oils and specialty      chemicals. |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | For      the Three Months |   |   | Percentage |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Ended      March 31,      |   |   | Increase   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2009                      |   |   | 2008       |   |   | (Decrease) |   |
| Margins:      (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                      |   |   |       |   |   |   |   |
| Crude      oil marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                         | 32.2   |   |       | $      | 20.3 |   |   |   | 59% |   |
| Lubrication      oil sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | 3.2    |   |       |   | 2.7 |   |   |   | 19% |   |
| Revenues:      (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                      |   |   |       |   |   |   |   |   |   |   |
| Crude      oil transportation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      | 20.5   |   |       |   | 23.4 |   |   |   | (12%) |   |
| Crude      oil terminaling (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                      | 7.6    |   |       |   | 3.9 |   |   |   | 95% |   |
|         Total      margin/revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                         | 63.5   |   |       | $      | 50.3 |   |   |   | 26% |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      |   |   |       |   |   |   |   |   |   |   |
| Total      barrels/gallons:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                      |   |   |       |   |   |   |   |   |   |   |
| Crude      oil marketing (barrels) (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                      | 45.4   |   |       |   | 43.0 |   |   |   | 6% |   |
| Lubrication      oil volumes (gallons)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                      | 5.4    |   |       |   | 3.9 |   |   |   | 38% |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      |   |   |       |   |   |   |   |   |   |   |
| Crude      oil transportation (barrels)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      | 29.2   |   |       |   | 27.8 |   |   |   | 5% |   |
| Crude      oil terminaling (barrels)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      | 46.8   |   |       |   | 33.1 |   |   |   | 41% |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      |   |   |       |   |   |   |   |   |   |   |
| Margin      per barrel:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |   |   |       |   |   |   |   |   |   |   |
| Lubrication      oil margin (per gallon)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                         | 0.603  |   |       | $      | 0.695 |   |   |   | (13%) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      |   |   |       |   |   |   |   |   |   |   |
| Average      tariff per barrel:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      |   |   |       |   |   |   |   |   |   |   |
| Crude      oil transportation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                         | 0.702  |   |       | $      | 0.842 |   |   |   | (17%) |   |
| Crude      oil terminaling                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | 0.163  |   |       |   | 0.116 |   |   |   | 41% |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                      |   |   |       |   |   |   |   |   |   |   |
| (1)        Amounts      in this table are presented prior to the eliminations of intercompany      sales, revenues and purchases between TEPPCO Crude Oil, LLC      (“TCO”) and TEPPCO Crude Pipeline, LLC (“TCPL”), both of which are      our wholly-owned subsidiaries. TCO is a significant shipper on      TCPL.(2)   Revenues      associated with crude oil terminaling are classified as crude oil      transportation in our statements of consolidated income.(3)      Reported      quantities exclude inter-region transfers, which are transfers among TCO’s      various geographically managed regions. For the three months ended      March 31, 2008, we previously reported 57.6 million barrels, which      included inter-region transfers. |   |

|                                                  |   | For      the Three Months |     |
|-------------------------------------------------------|--------|---------------------------|----------|
|                                                  |   | Ended      March 31,      |     |
|                                                  |   | 2009                      |     |   | 2008 |   |
| Sales      of petroleum products                      |   | $                         | 1,271.2  |   |   | $ | 2,637.7 |   |
| Transportation      – Crude oil                 |   |                      | 21.9     |   |   |   | 15.3 |   |
| Less:  Purchases      of petroleum products |   |                      | (1,229.6 | ) |   |   | (2,602.7 | ) |
| Total      margin/revenues                            |   |                      | 63.5     |   |   |   | 50.3 |   |
| Other      operating revenues                         |   |                      | 3.1      |   |   |   | 2.3 |   |
| Net      operating revenues                           |   |                      | 66.6     |   |   |   | 52.6 |   |
| Operating      expense                                |   |                      | 14.6     |   |   |   | 13.3 |   |
| Operating      fuel and power                         |   |                      | 1.8      |   |   |   | 1.7 |   |
| General      and administrative                       |   |                      | 1.9      |   |   |   | 1.8 |   |
| Depreciation      and amortization                    |   |                      | 5.6      |   |   |   | 4.8 |   |
| Taxes      – other than income taxes            |   |                      | 1.8      |   |   |   | 1.7 |   |
| Operating      income                                 |   | $                         | 40.9     |   |   | $ | 29.3 |   |

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|                                                                                                                                                                                                     |   | For      the Three Months |   |   |     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|----------|--------|
|                                                                                                                                                                                                     |   | Ended      March 31,      |   |   | Increase |   |
|                                                                                                                                                                                                     |   | 2009                      |   |   | 2008     |   |   | (Decrease) |   |
| Operating      revenues:                                                                                                                                                                                 |   |                      |   |   |     |   |   |   |   |
| Gathering      – Natural gas                                                                                                                                                                       |   | $                         | 13.6   |   |     | $      | 13.4 |   |   | $ | 0.2 |   |
| Transportation      – NGLs (1)                                                                                                                                                                     |   |                      | 12.5   |   |     |   | 13.0 |   |   |   | (0.5 | ) |
| Other                                                                                                                                                                                                    |   |                      | 2.9    |   |     |   | 3.7 |   |   |   | (0.8 | ) |
|      Total      operating revenues                                                                                                                                              |   |                      | 29.0   |   |     |   | 30.1 |   |   |   | (1.1 | ) |
|                                                                                                                                                                                                     |   |                      |   |   |     |   |   |   |   |   |   |   |
| Costs      and expenses:                                                                                                                                                                                 |   |                      |   |   |     |   |   |   |   |   |   |   |
| Operating      expense                                                                                                                                                                                   |   |                      | 8.6    |   |     |   | 5.0 |   |   |   | 3.6 |   |
| Operating      fuel and power                                                                                                                                                                            |   |                      | 2.6    |   |     |   | 3.7 |   |   |   | (1.1 | ) |
| General      and administrative                                                                                                                                                                          |   |                      | 3.0    |   |     |   | 2.6 |   |   |   | 0.4 |   |
| Depreciation      and amortization                                                                                                                                                                       |   |                      | 9.5    |   |     |   | 9.6 |   |   |   | (0.1 | ) |
| Taxes      – other than income taxes                                                                                                                                                               |   |                      | 0.8    |   |     |   | 0.8 |   |   |   | -- |   |
|      Total      costs and expenses                                                                                                                                              |   |                      | 24.5   |   |     |   | 21.7 |   |   |   | 2.8 |   |
|                                                                                                                                                                                                     |   |                      |   |   |     |   |   |   |   |   |   |   |
| Operating      income                                                                                                                                                                                    |   |                      | 4.5    |   |     |   | 8.4 |   |   |   | (3.9 | ) |
|                                                                                                                                                                                                     |   |                      |   |   |     |   |   |   |   |   |   |   |
| Equity      in earnings of unconsolidated affiliates                                                                                                                                                     |   |                      | 25.6   |   |     |   | 23.7 |   |   |   | 1.9 |   |
| Other,      net                                                                                                                                                                                          |   |                      | --     |   |     |   | 0.1 |   |   |   | (0.1 | ) |
|                                                                                                                                                                                                     |   |                      |   |   |     |   |   |   |   |   |   |   |
| Earnings      before interest                                                                                                                                                                            |   | $                         | 30.1   |   |     | $      | 32.2 |   |   | $ | (2.1 | ) |
|                                                                                                                                                                                                     |   |                      |   |   |     |   |   |   |   |   |   |   |
| (1)        Includes      transportation revenue from Enterprise Products Partners of $3.8 million      and $3.4 million for the three months ended March 31, 2009 and 2008,      respectively. |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                             |   | For      the Three Months |   |   | Percentage |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Ended      March 31,      |   |   | Increase   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2009                      |   |   | 2008       |   |   | (Decrease) |   |
| Gathering      – Natural Gas – Jonah: (1)                                                                                                                                                                                                                                                                                                                                                                            |   |                      |   |   |       |   |   |   |   |
| Bcf                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      | 194.9  |   |       |   | 167.1 |   |   |   | 17% |   |
| Btu      (in trillions)                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      | 215.1  |   |       |   | 184.6 |   |   |   | 17% |   |
| Average      fee per Mcf                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                         | 0.261  |   |       | $      | 0.258 |   |   |   | 1% |   |
| Average      fee per MMBtu                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                         | 0.236  |   |       | $      | 0.234 |   |   |   | 1% |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |   |       |   |   |   |   |   |   |   |
| Gathering      – Natural Gas – Val Verde: (1)                                                                                                                                                                                                                                                                                                                                                                        |   |                      |   |   |       |   |   |   |   |   |   |   |
| Bcf                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      | 42.8   |   |       |   | 38.2 |   |   |   | 12% |   |
| Btu      (in trillions)                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      | 38.6   |   |       |   | 34.2 |   |   |   | 13% |   |
| Average      fee per Mcf                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                         | 0.318  |   |       | $      | 0.351 |   |   |   | (9%) |   |
| Average      fee per MMBtu                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                         | 0.352  |   |       | $      | 0.392 |   |   |   | (10%) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |   |       |   |   |   |   |   |   |   |
| Transportation      and movements – NGLs:                                                                                                                                                                                                                                                                                                                                                                                  |   |                      |   |   |       |   |   |   |   |   |   |   |
| Transportation      barrels (in millions)                                                                                                                                                                                                                                                                                                                                                                                        |   |                      | 14.1   |   |       |   | 16.6 |   |   |   | (15%) |   |
| Lease      barrels (in millions) (2)                                                                                                                                                                                                                                                                                                                                                                                             |   |                      | 2.8    |   |       |   | 3.0 |   |   |   | (7%) |   |
| Average      rate per barrel                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                         | 0.824  |   |       | $      | 0.736 |   |   |   | 12% |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |   |       |   |   |   |   |   |   |   |
| Natural      Gas Sales:                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      |   |   |       |   |   |   |   |   |   |   |
| Btu      (in trillions)                                                                                                                                                                                                                                                                                                                                                                                                          |   |                      | 0.8    |   |       |   | 1.7 |   |   |   | (53%) |   |
| Average      fee per MMBtu                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                         | 3.377  |   |       | $      | 6.806 |   |   |   | (50%) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |   |       |   |   |   |   |   |   |   |
| Fractionation      – NGLs:                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      |   |   |       |   |   |   |   |   |   |   |
| Barrels      (in millions)                                                                                                                                                                                                                                                                                                                                                                                                       |   |                      | 0.8    |   |       |   | 1.1 |   |   |   | (27%) |   |
| Average      rate per barrel                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                         | 1.785  |   |       | $      | 1.661 |   |   |   | 7% |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |   |       |   |   |   |   |   |   |   |
| (1)  The      majority of volumes in Val Verde’s contracts are measured in Bcf, while      the majority of volumes in Jonah’s contracts are measured in      Btu. Both measures are shown for each asset for comparability      purposes.(2)        Revenues      associated with capacity leases are classified as other operating revenues      in our statements of consolidated income. |   |

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|                                                                                |   | For      the Three Months |   |   |     |   |
|-------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|----------|--------|
|                                                                                |   | Ended      March 31,      |   |   | Increase |   |
|                                                                                |   | 2009                      |   |   | 2008     |   |   | (Decrease) |   |
|   Operating      revenues:                                                |   |                      |   |   |     |   |   |   |   |
|          Transportation – inland                               |   | $                         | 33.6   |   |     | $      | 20.7 |   |   | $ | 12.9 |   |
|          Transportation – offshore                             |   |                      | 3.3    |   |     |   | 4.8 |   |   |   | (1.5 | ) |
|              Total Transportation – Marine |   |                      | 36.9   |   |     |   | 25.5 |   |   |   | 11.4 |   |
|                                                                                |   |                      |   |   |     |   |   |   |   |   |   |   |
|   Costs      and expenses:                                                |   |                      |   |   |     |   |   |   |   |   |   |   |
|          Operating expense                                           |   |                      | 18.7   |   |     |   | 8.6 |   |   |   | 10.1 |   |
|          Operating fuel and power                                    |   |                      | 4.3    |   |     |   | 5.5 |   |   |   | (1.2 | ) |
|          General and administrative                                  |   |                      | 1.4    |   |     |   | 0.7 |   |   |   | 0.7 |   |
|          Depreciation and amortization                               |   |                      | 6.4    |   |     |   | 3.7 |   |   |   | 2.7 |   |
|          Taxes – other than income taxes                       |   |                      | 0.9    |   |     |   | 0.4 |   |   |   | 0.5 |   |
|          Total costs and expenses                                    |   |                      | 31.7   |   |     |   | 18.9 |   |   |   | 12.8 |   |
|                                                                                |   |                      |   |   |     |   |   |   |   |   |   |   |
|          Operating income                                            |   |                      | 5.2    |   |     |   | 6.6 |   |   |   | (1.4 | ) |
|                                                                                |   |                      |   |   |     |   |   |   |   |   |   |   |
|          Earnings before interest                                    |   | $                         | 5.2    |   |     | $      | 6.6 |   |   | $ | (1.4 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                        | For      the Three MonthsEnded      March 31, |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|-----------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                        | 2009                                          |   |   |   | 2008 |
| Number      of inland tow boats                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 45                                                                                                          |                                          |   |   | 43 |
| Number      of inland tank barges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 105                                                                                                         |                                          |   |   | 98 |
| Number      of offshore tow boats                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 6                                                                                                           |                                          |   |   | 6 |
| Number      of offshore tank barges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 8                                                                                                           |                                          |   |   | 8 |
| Fleet      available days (in thousands) (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 13.9                                                                                                        |                                          |   |   | 7.4 |
| Fleet      operating days (in thousands) (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 12.4                                                                                                        |                                          |   |   | 6.9 |
| Fleet      utilization (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 89%                                                                                                         |                                          |   |   | 93% |
| Gross      margin (in millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $                 13.9 |                                          |   |   | $                 11.4 |
| Average      daily rate (in thousands) (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $                 1.12 |                                          |   |   | $                 1.66 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                        |                                          |   |   |   |   |
| (1)  Equal      to the number of calendar days in the period (for 2008 period, number of      calendar days from our acquisition of Cenac Towing Co., Inc. and      Cenac Offshore, L.L.C. and Mr. Arlen B. Cenac, Jr., the sole owner of      Cenac Towing Co., Inc. and Cenac Offshore, L.L.C. (collectively, “Cenac”)      on February 1, 2008 and Horizon Maritime, LLC (“Horizon”) on February 29,      2008 through March 31, 2008) multiplied by the total number of vessels      less the aggregate number of days that our vessels are not operating due      to scheduled maintenance and repairs or unscheduled instances where      vessels may have to be drydocked in the event of accidents and other      unforeseen damage.(2)        Equal      to the number of our fleet available days in the period (for 2008 period,      number of our fleet available days from our acquisition of Cenac on      February 1, 2008 and Horizon on February 29, 2008 through March 31, 2008)      less the aggregate number of days that our vessels are      off-hire.(3)        Equal      to the number of fleet operating days divided by the number of fleet      available days during the period.(4)        Equal      to gross margin divided by the number of fleet operating days during the      period. |

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|                                           |   | For      the Three MonthsEnded      March 31, |   |
|------------------------------------------------|--------|-----------------------------------------------|--------|
|                                           |   | 2009                                          |   |   | 2008 |   |
| Transportation      revenue – Marine     |   | $                                             | 36.9   |   |   | $ | 25.5 |   |
| Less:  Operating      expense        |   |                                          | (18.7  | ) |   |   | (8.6 | ) |
| Less:  Operating      fuel and power |   |                                          | (4.3   | ) |   |   | (5.5 | ) |
|   Gross      margin                  |   |                                          | 13.9   |   |   |   | 11.4 |   |
| General      and administrative                |   |                                          | 1.4    |   |   |   | 0.7 |   |
| Depreciation      and amortization             |   |                                          | 6.4    |   |   |   | 3.7 |   |
| Taxes      – other than income taxes     |   |                                          | 0.9    |   |   |   | 0.4 |   |
|   Operating      income              |   | $                                             | 5.2    |   |   | $ | 6.6 |   |

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|                                  |   | For      the Three Months |   |
|---------------------------------------|--------|---------------------------|--------|
|                                  |   | Ended      March 31,      |   |
|                                  |   | 2009                      |   |   | 2008 |   |
| Cash      provided by (used in):      |   |                      |   |   |   |   |
|   Operating      activities |   | $                         | 156.6  |   |   | $ | 58.7 |   |
|   Investing      activities |   |                      | (113.6 | ) |   |   | (436.5 | ) |
|   Financing      activities |   |                      | (40.8  | ) |   |   | 377.8 |   |

| §   | Cash      flow from operating activities increased due to the timing of cash      receipts and cash disbursements related to working capital      components. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Cash      distributions received from unconsolidated affiliates increased $10.5      million. Distributions received from our equity investment in Seaway      increased $8.8 million primarily due to the timing of distributions      received in the 2009 period as compared to the 2008      period.  Distributions from our equity investment in Jonah      increased $1.7 million primarily due to increased revenues and volumes      generated from completion of the system  expansion. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Cash      paid for interest, net of amounts capitalized, decreased $25.3 million for      the three months ended March 31, 2009 compared with the three months ended      March 31, 2008, primarily due to the redemption of our senior notes in the      2008 period, partially offset by an increase in debt outstanding,      including higher outstanding balances on our variable rate Revolving      Credit Facility.  Excluding the effects of hedging activities      and interest capitalized during the year ending December 31, 2009, we      expect interest payments on our fixed rate senior notes and junior      subordinated notes for 2009 to be approximately $139.6      million.  We expect to make our interest payments with cash      flows from operating activities. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Cash      used for business combinations was $338.5 million during the three months      ended March 31, 2008, of which $257.7 million was for the Cenac      acquisition and $80.8 million was for the Horizon    acquisition. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Capital      expenditures increased $50.0 million primarily due to higher spending on      revenue generating projects for the three months ended March 31, 2009      compared with the three months ended March 31, 2008.  Cash paid      for linefill on assets owned decreased $14.3 million for the three months      ended March 31, 2009 compared with the three months  ended |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|    | March      31, 2008, primarily due to the timing of completion of organic growth      projects in our Upstream Segment. |
|--------------|-------------------------------------------------------------------------------------------------------------------------|

| §   | Investments      in unconsolidated affiliates decreased $21.2 million, which includes      a $19.5 million decrease in contributions to Jonah primarily related to      lower system expansion spending in 2009 and a $1.7 million decrease in net      contributions to Texas Offshore Port System for the three months ended      March 31, 2009.  In January 2009, we received a $3.1 million      refund of our 2008 contributions to Texas Offshore Port System due to a      delay in the timing of the expected project spending.  In      February and March 2009, we then invested an additional $1.4 million in      Texas Offshore Port System.  See Note 17 in the Notes to      Unaudited Condensed Consolidated Financial Statements for information      regarding our dissociation from the Texas Offshore Port System      partnership. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | During      the three months ended March 31, 2009 and 2008, we paid $1.4 million and      $0.3 million, respectively, related to the acquisition of intangible      assets. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | During      the three months ended March 31, 2008, we used $1.0 billion of proceeds      from our term credit agreement (i) to fund the cash portion of our Cenac      and Horizon acquisitions, (ii) to fund the redemption of our 7.51% TE      Products Senior Notes in January 2008 and to repay our 6.45% TE Products      Senior Notes, which matured in January 2008, (iii) to repay $63.2 million      of debt assumed in the Cenac acquisition, and (iv) for other general      partnership purposes.  We used the proceeds from the issuance of      senior notes in March 2008 to repay the outstanding balance of $1.0      billion under the term credit agreement.  Debt issuance costs      paid during the three months ended March 31, 2008 were $8.7      million. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Net      borrowings under our Revolving Credit Facility increased $109.8      million. |
|--------------------|----------------------------------------------------------------------------------------|

| §   | We      paid $52.1 million to settle treasury locks in March 2008 (see Note 4 in      the Notes to Unaudited Condensed Consolidated Financial Statements) upon      the issuance of senior notes. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Cash      distributions to our partners increased $16.5 million for the three months      ended March 31, 2009 compared with the three months ended March 31, 2008,      due to an increase in the number of Units outstanding and an increase in      our quarterly cash distribution rate per Unit.  We paid cash      distributions of $91.4 million ($0.725 per Unit) and $74.9 million ($0.695      per Unit) during the three months ended March 31, 2009 and 2008,      respectively.  Additionally, we declared a cash distribution of      $0.725 per Unit for the quarter ended March 31, 2009.  We paid      the distribution of $91.4 million on May 7, 2009 to unitholders of record      on April 30, 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Net      proceeds from the issuance of Units to employees under the employee unit      purchase plan  (“EUPP”) and the issuance of Units in connection      with our distribution reinvestment plan (“DRIP”) were $1.6 million for the      three months ended March 31, 2009, compared to $2.7 million for the three      months ended March 31, 2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                  |   | For      the Three MonthsEnded      March 31, |   |
|-----------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                  |   | 2009                                          |   |   | 2008 |   |
| Revenues      from EPCO and affiliates:                               |   |                                          |   |   |   |   |
| Sales      of petroleum products                                      |   | $                                             | 0.1    |   |   | $ | 0.6 |   |
| Transportation      – NGLs                                      |   |                                          | 3.8    |   |   |   | 3.4 |   |
| Transportation      – LPGs                                      |   |                                          | 4.9    |   |   |   | 2.3 |   |
| Other      operating revenues                                         |   |                                          | 14.0   |   |   |   | 0.4 |   |
|        Related      party revenues |   | $                                             | 22.8   |   |   | $ | 6.7 |   |
| Costs      and Expenses from EPCO and affiliates:                     |   |                                          |   |   |   |   |   |   |
| Purchases      of petroleum products                                  |   | $                                             | 26.7   |   |   | $ | 19.7 |   |
| Operating      expense                                                |   |                                          | 28.6   |   |   |   | 26.1 |   |
| General      and administrative                                       |   |                                          | 8.1    |   |   |   | 8.5 |   |
| Costs      and Expenses from unconsolidated affiliates:               |   |                                          |   |   |   |   |   |   |
| Purchases      of petroleum products                                  |   |                                          | (0.7   | ) |   |   | 1.6 |   |
| Operating      expense                                                |   |                                          | 1.6    |   |   |   | 2.3 |   |
| Costs and Expenses from Cenac      and affiliates:                    |   |                                          |   |   |   |   |   |   |
| Operating      expense                                                |   |                                          | 13.4   |   |   |   | 7.4 |   |
| General      and administrative                                       |   |                                          | 1.1    |   |   |   | 0.5 |   |
|        Related      party expenses |   | $                                             | 78.8   |   |   | $ | 66.1 |   |

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| §   | FSP      FAS 157-4, Determining      Fair Value When the Volume and Level of Activity for the Asset or      Liability Have Significantly Decreased and Identifying Transactions That      Are Not Orderly; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                                                                                           |
| §   | FSP      FAS 107-1 and APB 28-1, Interim Disclosures About Fair      Value of FinancialInstruments.                                                                                                            |

Item 3.  Quantitative and QualitativeDisclosures about MarketRisk.

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|                                                         |                    |   | Portfolio      Fair Value at |   |
|--------------------------------------------------------------|-------------------------|--------|------------------------------|--------|
| Scenario                                                     | ResultingClassification |   | March      31,2009           |   |   | April      20,2009 |   |
| FV      assuming no change in underlying commodity prices    | Asset                   |   | $                            | 0.6    |   |   | $ | 0.5 |   |
| FV      assuming 10% increase in underlying commodity prices | Asset                   |   |                         | 0.6    |   |   |   | 0.2 |   |
| FV      assuming 10% decrease in underlying commodity prices | Asset                   |   |                         | 0.7    |   |   |   | 0.9 |   |

Item 4.  Controls andProcedures.

| (i)   | that      our disclosure controls and procedures are designed to ensure that      information required to be disclosed by us in the reports that we file or      submit under the Securities Exchange Act of 1934 is recorded, processed,      summarized and reported within the time periods specified in the SEC’s      rules and forms, and that such information is accumulated and communicated      to our management, including the CEO and CFO, as appropriate to allow      timely decisions regarding required disclosure;  and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | that      our disclosure controls and procedures are effective at a reasonable      assurance level. |
|------------------|------------------------------------------------------------------------------------------------------|

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PART II.  OTHER INFORMATION.

Item 1.  LegalProceedings.

Item 1A.  RiskFactors.

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Item 5.  OtherInformation.

Item 6.  Exhibits.

| Exhibit      Number | Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                 | Certificate      of Limited Partnership of TEPPCO Partners, L.P. (Filed as Exhibit 3.2 to      the Registration Statement of TEPPCO Partners, L.P. (Commission File No.      33-32203) and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.2                 | Fourth      Amended and Restated Agreement of Limited Partnership of TEPPCO Partners,      L.P., dated December 8, 2006 (Filed as Exhibit 3 to the Current Report on      Form 8-K of TEPPCO Partners, L.P. (Commission File No. 1-10403) filed on      December 13, 2006).                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.3                 | First      Amendment to Fourth Amended and Restated Partnership Agreement of TEPPCO      Partners, L.P. dated as of December 27, 2007 (Filed as Exhibit 3.1 to      Current Report on Form 8-K of TEPPCO Partners, L.P. (Commission File No.      1-10403) filed December 28, 2007 and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                   |
| 3.4                 | Amendment      No. 2 to the Fourth Amended and Restated Agreement of Limited Partnership      of TEPPCO Partners, L.P., dated as of November 6, 2008 (Filed as Exhibit      3.5 to Form 10-Q of TEPPCO Partners, L.P. (Commission File No. 1-10403)      for the quarter ended September 30, 2008 and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                    |
| 3.5                 | Amended      and Restated Limited Liability Company Agreement of Texas Eastern Products      Pipeline Company, LLC (Filed as Exhibit 3 to the Current Report on Form      8-K of TEPPCO Partners, L.P. (Commission File No. 1-10403) filed on May      10, 2007 and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                           |
| 3.6                 | First      Amendment to the Amended and Restated Limited Liability Company Agreement      of Texas Eastern Products Pipeline Company, LLC, dated as of November 6,      2008 (Filed as Exhibit 3.6 to Form 10-Q of TEPPCO Partners, L.P.      (Commission File No. 1-10403) for the quarter ended September 30, 2008 and      incorporated herein by reference).                                                                                                                                                                                                                                                                                                 |
| 4.1                 | Form      of Certificate representing Limited Partner Units (Filed as Exhibit 4.4 to      the Form S-3 of TEPPCO Partners, L.P. filed on September 3, 2008      (Commission File No. 1-10403) and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.2                 | Indenture      between TEPPCO Partners, L.P., as issuer, TE Products Pipeline Company,      Limited Partnership, TCTM, L.P., TEPPCO Midstream Companies, L.P. and      Jonah Gas Gathering Company, as subsidiary guarantors, and First Union      National Bank, NA, as trustee, dated as of February 20, 2002 (Filed as      Exhibit 99.2 to Form 8-K of TEPPCO Partners, L.P. (Commission File No.      1-10403) dated as of February 20, 2002 and incorporated herein by      reference).                                                                                                                                                                    |
| 4.3                 | First      Supplemental Indenture between TEPPCO Partners, L.P., as issuer, TE      Products Pipeline Company, Limited Partnership, TCTM, L.P., TEPPCO      Midstream Companies, L.P. and Jonah Gas Gathering Company, as subsidiary      guarantors, and First Union National Bank, NA, as trustee, dated as of      February 20, 2002 (Filed as Exhibit 99.3 to Form 8-K of TEPPCO Partners,      L.P. (Commission File No. 1-10403) dated as of February 20, 2002 and      incorporated herein by reference).                                                                                                                                                 |
| 4.4                 | Second      Supplemental Indenture, dated as of June 27, 2002, among TEPPCO Partners,      L.P., as issuer, TE Products Pipeline Company, Limited Partnership, TCTM,      L.P., TEPPCO Midstream Companies, L.P., and Jonah Gas Gathering Company,      as Initial Subsidiary Guarantors, and Val Verde Gas Gathering Company,      L.P., as New Subsidiary Guarantor, and Wachovia Bank, National      Association, formerly known as First Union National Bank, as trustee      (Filed as Exhibit 4.6 to Form 10-Q of TEPPCO Partners, L.P. (Commission      File No. 1-10403) for the quarter ended June 30, 2002 and incorporated      herein by reference). |

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| 4.5  | Third      Supplemental Indenture among TEPPCO Partners, L.P. as issuer, TE Products      Pipeline Company, Limited Partnership, TCTM, L.P., TEPPCO Midstream      Companies, L.P., Jonah Gas Gathering Company and Val Verde Gas Gathering      Company, L.P. as Subsidiary Guarantors, and Wachovia Bank, National      Association, as trustee, dated as of January 30, 2003 (Filed as Exhibit      4.7 to Form 10-K of TEPPCO Partners, L.P. (Commission File No. 1-10403)      for the year ended December 31, 2002 and incorporated herein by      reference).                                                                             |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.6  | Full      Release of Guarantee dated as of July 31, 2006 by Wachovia Bank, National      Association, as trustee, in favor of Jonah Gas Gathering Company (Filed as      Exhibit 4.8 to Form 10-Q of TEPPCO Partners, L.P. (Commission File No.      1-10403) for the quarter ended September 30, 2006 and incorporated herein      by reference).                                                                                                                                                                                                                                                                                               |
| 4.7  | Indenture,      dated as of May 14, 2007, by and among TEPPCO Partners, L.P., as      issuer, TE Products Pipeline Company, Limited Partnership, TCTM, L.P.,      TEPPCO Midstream Companies, L.P. and Val Verde Gas Gathering Company,      L.P., as subsidiary guarantors, and The Bank of New York Trust Company,      N.A., as trustee (Filed as Exhibit 99.1 to the Current Report on Form 8-K      of TEPPCO Partners, L.P. (Commission File No. 1-10403) filed on May 15,      2007 and incorporated herein by reference).                                                                                                           |
| 4.8  | First      Supplemental Indenture, dated as of May 18, 2007, by and among TEPPCO      Partners, L.P., as issuer, TE Products Pipeline Company, Limited      Partnership, TCTM, L.P., TEPPCO Midstream Companies, L.P. and Val Verde      Gas Gathering Company, L.P., as subsidiary guarantors, and The Bank of New      York Trust Company, N.A., as trustee (Filed as Exhibit 4.2 to the Current      Report on Form 8-K of TEPPCO Partners, L.P. (Commission File No. 1-10403)      filed on May 18, 2007 and incorporated herein by    reference).                                                                                      |
| 4.9  | Second      Supplemental Indenture, dated as of June 30, 2007, by and among TEPPCO      Partners, L.P., as issuer, TE Products Pipeline Company, Limited      Partnership, TCTM, L.P., TEPPCO Midstream Companies, L.P. , Val Verde Gas      Gathering Company, L.P., TE Products Pipeline Company, LLC and TEPPCO      Midstream Companies, LLC, as subsidiary guarantors, and The Bank of New      York Trust Company, N.A., as trustee (Filed as Exhibit 4.2 to the Current      Report on Form 8-K of TE Products Pipeline Company, LLC (Commission File      No. 1-13603) filed on July 6, 2007 and incorporated herein by      reference). |
| 4.10 | Fourth      Supplemental Indenture, dated as of June 30, 2007, by and among TEPPCO      Partners, L.P., as issuer, TE Products Pipeline Company, Limited      Partnership, TCTM, L.P., TEPPCO Midstream Companies, L.P., Val Verde Gas      Gathering Company, L.P., TE Products Pipeline Company, LLC and TEPPCO      Midstream Companies, LLC, as subsidiary guarantors, and U.S. Bank National      Association, as trustee (Filed as Exhibit 4.3 to the Current Report on      Form 8-K of TE Products Pipeline Company, LLC (Commission File No.      1-13603) filed on July 6, 2007 and incorporated herein by      reference).            |
| 4.11 | Fifth      Supplemental Indenture, dated as of March 27, 2008, by and among TEPPCO      Partners, L.P., as issuer, TE Products Pipeline Company, LLC, TCTM, L.P.,      TEPPCO Midstream Companies, LLC, and Val Verde Gathering Company, L.P., as      subsidiary guarantors, and U.S. Bank National Association, as trustee      (Filed as Exhibit 4.11 to Form 10-Q of TEPPCO Partners, L.P. (Commission      File No. 1-10403) for the quarter ended March 31, 2008 and incorporated      herein by reference).                                                                                                                               |
| 4.12 | Sixth      Supplemental Indenture, dated as of March 27, 2008, by and among TEPPCO      Partners, L.P., as issuer, TE Products Pipeline Company, LLC, TCTM, L.P.,      TEPPCO Midstream Companies, LLC and Val Verde Gas Gathering Company, L.P.,      as subsidiary guarantors, and U.S. Bank National Association, as trustee      (Filed as Exhibit 4.12 to Form 10-Q of TEPPCO Partners, L.P. (Commission      File No. 1-10403) for the quarter ended March 31, 2008 and incorporated      herein by reference).                                                                                                                            |
| 4.13 | Seventh      Supplemental Indenture, dated as of March 27, 2008, by and among TEPPCO      Partners, L.P., as issuer, TE Products Pipeline Company, LLC, TCTM, L.P.,      TEPPCO Midstream Companies, LLC and Val Verde Gas Gathering Company, L.P.,      as subsidiary guarantors, and U.S. Bank National Association, as trustee      (Filed as Exhibit 4.13 to Form 10-Q of TEPPCO Partners, L.P. (Commission      File No. 1-10403) for the quarter ended March 31, 2008 and incorporated      herein by reference).                                                                                                                          |
| 4.14 | Replacement      of Capital Covenant, dated May 18, 2007, executed by TEPPCO Partners,      L.P., TE Products Pipeline Company, Limited Partnership, TCTM, L.P.,      TEPPCO Midstream Companies,                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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|   |  L.P. and Val      Verde Gas Gathering Company, L.P. in favor of the covered debt holders      described therein (Filed as Exhibit 99.1 to the Current Report on Form 8-K      of TEPPCO Partners, L.P. (Commission File No. 1-10403) filed on May 18,      2007 and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                            |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1   | Fifth Amended and      Restated Administrative Services Agreement by and among EPCO, Inc.,      Enterprise Products Partners L.P., Enterprise Products Operating L.P.,      Enterprise Products GP, LLC, Enterprise Products OLPGP, Inc., Enterprise      GP Holdings L.P., EPE Holdings, LLC, DEP Holdings, LLC, Duncan Energy      Partners L.P., DEP OLPGP, LLC, DEP Operating Partnership L.P., TEPPCO      Partners, L.P., Texas Eastern Products Pipeline Company,                                                                                                                                                                                |
| 10.2   | LLC,      TE Products Pipeline Company, Limited Partnership, TEPPCO Midstream      Companies, L.P., TCTM, L.P. and TEPPCO GP, Inc. dated January 30, 2009      (Filed as Exhibit 10.1 to Current Report on Form 8-K of Enterprise      Products Partners L.P. (Commission File No. 1-14323) filed on February 5,      2009 and incorporated herein by reference).Agreement      and Release between William G. Manias and EPCO, Inc. dated January 19,      2009 (Filed as Exhibit 10.1 to Current Report on Form 8-K of TEPPCO      Partners, L.P. (Commission File No. 1-10403) filed on January 23, 2009 and      incorporated herein by reference). |
| 10.3*  | Amendment      to Transitional Operating Agreement between Cenac Towing Co., L.L.C.,      Cenac Offshore, L.L.C., CTCO Benefits Services, L.L.C., Mr. Arlen B.      Cenac, Jr., and TEPPCO Marine Services, LLC, effective as of March 5,      2009.                                                                                                                                                                                                                                                                                                                                                                                                    |
| 12.1*  | Statement      of Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1*  | Certification      of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a),      promulgated under the Securities Exchange Act of 1934, as    amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.2*  | Certification      of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a),      promulgated under the Securities Exchange Act of 1934, as    amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 32.1** | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 32.2** | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|   |  SIGNATURES |
|--------|------------------|

|   |  TEPPCO      Partners, L.P. |
|--------|----------------------------------|

|   Date:  May      11, 2009 | By:  /s/   JERRY      E.  THOMPSON                                                          Jerry E. Thompson,                       President and Chief Executive Officer ofTexas      Eastern Products Pipeline Company, LLC, General Partner                                                                       |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   Date:  May      11, 2009 | By:  /s/   TRACY      E. OHMART                                             Tracy E. Ohmart,        Acting Chief Financial Officer, Controller, Assistant      Secretary                            and      Assistant Treasurer ofTexas      Eastern Products Pipeline Company, LLC, General  Partner |

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