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| RATIO      OF EARNINGS TO FIXED CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
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| The      following table sets forth the ratio of earnings to fixed charges for      Southern Union on a historical basis for the years ended December 31,      2007, 2006 and 2005, the six months ended December 31, 2004, and the years      ended June 30, 2004, 2003 and 2002. For the purpose of calculating      such ratios, “earnings” consist of pre-tax income from continuing      operations before income or loss from equity investees, adjusted to      reflect distributed income from equity investments, and fixed charges,      less capitalized interest. “Fixed charges” consist of interest costs,      amortization of debt discount, premiums and issuance costs and an estimate      of interest implicit in rentals. No adjustment has been made to      earnings for the amortization of capital interest for the periods      presented as such amount is immaterial. Interest on FIN 48      liabilities is excluded from the computation of fixed charges as it is      recorded by Southern Union in income tax expense versus interest      expense. |   |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Year      Ended December 31, |   |   | 6      Months Ended |   |   | Year      Ended June 30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | December      31, 2004 |   | 2004 |   |   | 2003 |   |
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| FIXED      CHARGES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $ | 202,403 |   |   | $ | 202,513 |   |   | $ | 132,971 |   |   | $ | 65,344 |   |   | $ | 137,967 |   |   | $ | 91,731 |   |
| Net      amortization of debt discount, premium and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    issuance      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 743 |   |   |   | 12,130 |   |   |   | 2,186 |   |   |   | (446 | ) |   |   | (10,100 | ) |   |   | 1,612 |   |
| Capitalized      Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 14,708 |   |   |   | 5,492 |   |   |   | 8,950 |   |   |   | 2,614 |   |   |   | 3,865 |   |   |   | 26 |   |
| Interest      portion of rental expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 6,645 |   |   |   | 6,234 |   |   |   | 6,700 |   |   |   | 3,152 |   |   |   | 5,940 |   |   |   | 2,012 |   |
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| Total      Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 224,499 |   |   | $ | 226,369 |   |   | $ | 150,807 |   |   | $ | 70,664 |   |   | $ | 137,672 |   |   | $ | 95,381 |   |
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| EARNINGS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      pre-tax income (loss) from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $ | 323,970 |   |   | $ | 326,330 |   |   | $ | 203,148 |   |   | $ | 16,954 |   |   | $ | 106,468 |   |   | $ | (14,371 | ) |
| Earnings      of equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (100,914 | ) |   |   | (141,370 | ) |   |   | (70,742 | ) |   |   | (4,745 | ) |   |   | (200 | ) |   |   | (422 | ) |
| Distributed      income from equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 103,550 |   |   |   | 62,637 |   |   |   | 15,203 |   |   |   | - |   |   |   | 174 |   |   |   | - |   |
| Capitalized      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (14,708 | ) |   |   | (5,492 | ) |   |   | (8,950 | ) |   |   | (2,614 | ) |   |   | (3,865 | ) |   |   | (26 | ) |
| Total      fixed charges (from above)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 224,499 |   |   |   | 226,369 |   |   |   | 150,807 |   |   |   | 70,664 |   |   |   | 137,672 |   |   |   | 95,381 |   |
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| Earnings      Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | 536,397 |   |   | $ | 468,474 |   |   | $ | 289,466 |   |   | $ | 80,259 |   |   | $ | 240,249 |   |   | $ | 80,562 |   |
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| Ratio      of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 2.4 |   |   |   | 2.1 |   |   |   | 1.9 |   |   |   | 1.1 |   |   |   | 1.7 |   |   | (a) |   |
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| (a) The      earnings were inadequate to cover fixed charges by approximately $14.8      million for the year ended June 30, 2003. In accordance with      accounting principles generally accepted in the United States of America,      we did not allocate interest expense or other corporate costs to      discontinued operations for any periods presented (except where the      underlying debt was assumed by the buyers of these operations), resulting      in the recognition of losses from continuing operations for the year ended      June 30, 2003. All outstanding debt of Southern Union Company and its      subsidiaries, other than Panhandle Eastern Pipe Line Company, LP, is      maintained at Southern Union Company.                                                                                                                                                                                                                                                                                                                                                                |   |
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