----

| Delaware                                      | 44-0382470               |
|-----------------------------------------------|--------------------------|
| (State      or other jurisdiction of          | (I.R.S.      Employer    |
| incorporation      or organization)           | Identification      No.) |
|                                          |                     |
|                                          |                     |
| 5444      Westheimer Road                     | 77056-5306               |
| Houston,      Texas                           | (Zip      Code)          |
| (Address      of principal executive offices) |                     |

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Table of Contents

| PART      I. FINANCIAL INFORMATION: | Page(s)                                                                                             |
|-------------------------------------|-----------------------------------------------------------------------------------------------------|
|                                |                                                                                                |
|                                | Glossary                                                                                            | 2 |
|                                |                                                                                                |   |
|                                | ITEM      1. Financial Statements (Unaudited):                                                      |   |
|                                |                                                                                                |
|                                | Condensed consolidated statement of    operations.                                                  | 3 |
|                                |                                                                                                |
|                                | Condensed consolidated balance sheet.                                                               | 4-5 |
|                                |                                                                                                |
|                                | Condensed consolidated statement of cash    flows.                                                  | 6 |
|                                |                                                                                                |
|                                | Condensed consolidated statement of partners’ capital and      comprehensive income.          | 7 |
|                                |                                                                                                |
|                                | Notes to condensed consolidated financial      statements.                                          | 8 |
|                                |                                                                                                |
|                                | ITEM 2. Management's Discussion and Analysis of Financial      Condition and Results of Operations. | 18 |
|                                |                                                                                                |
|                                | ITEM 3. Quantitative and Qualitative Disclosures About Market      Risk.                            | 21 |
|                                |                                                                                                |
|                                | ITEM 4. Controls and Procedures.                                                                    | 21 |
|                                |                                                                                                |
| PART      II. OTHER INFORMATION:    |                                                                                                |
|                                |                                                                                                |
|                                | ITEM 1. Legal Proceedings.                                                                          | 24 |
|                                |                                                                                                |
|                                | ITEM 1A.  Risk Factors.                                                                   | 24 |
|                                |                                                                                                |
|                                | ITEM 2.  Unregistered Sales of Equity Securities and      Use of Proceeds.                | 24 |
|                                |                                                                                                |
|                                | ITEM 3.  Defaults Upon Senior      Securities.                                            | 24 |
|                                |                                                                                                |
|                                | ITEM 4.  Submission of Matters to a Vote of Security      Holders.                        | 24 |
|                                |                                                                                                |
|                                | ITEM 5.  Other Information.                                                               | 24 |
|                                |                                                                                                |
|                                | ITEM 6. Exhibits.                                                                                   | 25 |
|                                |                                                                                                |
|                                | SIGNATURES                                                                                          | 26 |
|                                |                                                                                                |

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Table of Contents

GLOSSARY

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Table of Contents

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

|                                                          |   | Three      Months Ended March 31, |    |
|---------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                          |   | 2009                              |    |   | 2008 |   |
|                                                          |   | (In      thousands)               |    |
| Operating      revenue                                        |   |                              |    |   |   |   |
| Transportation      and storage of natural gas                |   | $                                 | 157,117 |   |   | $ | 153,382 |   |
| LNG      terminalling revenue                                 |   |                              | 33,077  |   |   |   | 30,890 |   |
| Other      revenue                                            |   |                              | 2,101   |   |   |   | 2,779 |   |
| Total      operating revenue                                  |   |                              | 192,295 |   |   |   | 187,051 |   |
|                                                          |   |                              |    |   |   |   |   |   |
| Operating      expenses                                       |   |                              |    |   |   |   |   |   |
| Operation,      maintenance and general                       |   |                              | 71,246  |   |   |   | 50,580 |   |
| Operation,      maintenance and general - affiliates (Note 4) |   |                              | 11,742  |   |   |   | 10,112 |   |
| Depreciation      and amortization                            |   |                              | 27,863  |   |   |   | 25,061 |   |
| Taxes,      other than on income                              |   |                              | 8,925   |   |   |   | 8,649 |   |
| Total      operating expenses                                 |   |                              | 119,776 |   |   |   | 94,402 |   |
|                                                          |   |                              |    |   |   |   |   |   |
|                                                          |   |                              |    |   |   |   |   |   |
| Operating      income                                         |   |                              | 72,519  |   |   |   | 92,649 |   |
|                                                          |   |                              |    |   |   |   |   |   |
| Other      income (expense)                                   |   |                              |    |   |   |   |   |   |
| Interest      expense                                         |   |                              | (20,181 | ) |   |   | (21,065 | ) |
| Interest      income - affiliates (Note 4)                    |   |                              | 2,292   |   |   |   | 6,950 |   |
| Other,      net                                               |   |                              | 162     |   |   |   | 561 |   |
| Total      other income (expense)                             |   |                              | (17,727 | ) |   |   | (13,554 | ) |
|                                                          |   |                              |    |   |   |   |   |   |
| Earnings      before income taxes                             |   |                              | 54,792  |   |   |   | 79,095 |   |
|                                                          |   |                              |    |   |   |   |   |   |
| Income      taxes                                             |   |                              | 21,903  |   |   |   | 30,856 |   |
|                                                          |   |                              |    |   |   |   |   |   |
| Net      earnings                                             |   | $                                 | 32,889  |   |   | $ | 48,239 |   |

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CONDENSED CONSOLIDATED BALANCE SHEET

|                                                              |   | March      31, 2009 |      |   | December      31, 2008 |   |
|-------------------------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
| Assets                                                            |   | (In      thousands) |      |
|                                                              |   |                |      |   |                   |   |
| Current      assets                                               |   |                |      |   |                   |   |
| Cash      and cash equivalents                                    |   | $                   | 35        |   |                   | $      | 28 |   |
| Accounts      receivable, billed and unbilled, less allowances of |   |                |      |   |                   |   |   |   |
| $1,161      and $1,161 respectively                               |   |                | 69,391    |   |                   |   | 74,058 |   |
| Accounts      receivable - related parties (Note 4)               |   |                | 4,597     |   |                   |   | 6,596 |   |
| Gas      imbalances - receivable                                  |   |                | 139,845   |   |                   |   | 171,689 |   |
| System      gas and operating supplies (Note 3)                   |   |                | 138,543   |   |                   |   | 196,603 |   |
| Note      receivable - CrossCountry Citrus (Note 4)               |   |                | -         |   |                   |   | 24,265 |   |
| Other                                                             |   |                | 12,705    |   |                   |   | 19,711 |   |
| Total      current assets                                         |   |                | 365,116   |   |                   |   | 492,950 |   |
|                                                              |   |                |      |   |                   |   |   |   |
| Property,      plant and equipment                                |   |                |      |   |                   |   |   |   |
| Plant      in service                                             |   |                | 3,224,412 |   |                   |   | 3,217,832 |   |
| Construction      work-in-progress                                |   |                | 467,216   |   |                   |   | 403,344 |   |
|                                                              |   |                | 3,691,628 |   |                   |   | 3,621,176 |   |
| Less      accumulated depreciation and amortization               |   |                | 421,663   |   |                   |   | 394,307 |   |
| Net      property, plant and equipment                            |   |                | 3,269,965 |   |                   |   | 3,226,869 |   |
|                                                              |   |                |      |   |                   |   |   |   |
| Note      receivable - Southern Union (Note 4)                    |   |                | 171,430   |   |                   |   | 127,530 |   |
| Note      receivable - CrossCountry Citrus (Note 4)               |   |                | 368,126   |   |                   |   | 368,126 |   |
| Non-current      system gas (Note 3)                              |   |                | 11,637    |   |                   |   | 17,687 |   |
| Other                                                             |   |                | 21,504    |   |                   |   | 20,825 |   |
|                                                              |   |                |      |   |                   |   |   |   |
| Total      assets                                                 |   | $                   | 4,207,778 |   |                   | $      | 4,253,987 |   |

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|                                              |   | March      31, 2009 |      |   | December      31, 2008 |   |
|---------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
|                                              |   | (In      thousands) |      |
| Partners'      Capital                            |   |                |      |   |                   |   |
| Partners'      capital                            |   | $                   | 1,375,710 |   |                   | $      | 1,342,821 |   |
| Accumulated      other comprehensive loss         |   |                | (27,081   | )      |                   |   | (28,301 | ) |
| Tax      sharing note receivable - Southern Union |   |                | (7,726    | )      |                   |   | (8,561 | ) |
| Total      partners' capital                      |   |                | 1,340,903 |   |                   |   | 1,305,959 |   |
|                                              |   |                |      |   |                   |   |   |   |
| Long-term      debt (Note 5)                      |   |                | 1,873,942 |   |                   |   | 1,874,349 |   |
| Total      capitalization                         |   |                | 3,214,845 |   |                   |   | 3,180,308 |   |
|                                              |   |                |      |   |                   |   |   |   |
| Current      liabilities                          |   |                |      |   |                   |   |   |   |
| Current      portion of long-term debt (Note 5)   |   |                | 60,623    |   |                   |   | 60,623 |   |
| Accounts      payable                             |   |                | 7,563     |   |                   |   | 7,754 |   |
| Accounts      payable - related parties (Note 4)  |   |                | 91,991    |   |                   |   | 71,895 |   |
| Gas      imbalances - payable                     |   |                | 239,761   |   |                   |   | 338,591 |   |
| Accrued      taxes                                |   |                | 15,893    |   |                   |   | 13,561 |   |
| Accrued      interest                             |   |                | 22,350    |   |                   |   | 15,861 |   |
| Capital      accruals                             |   |                | 60,814    |   |                   |   | 71,821 |   |
| Other                                             |   |                | 86,613    |   |                   |   | 80,983 |   |
| Total      current liabilities                    |   |                | 585,608   |   |                   |   | 661,089 |   |
|                                              |   |                |      |   |                   |   |   |   |
| Deferred      income taxes, net                   |   |                | 289,654   |   |                   |   | 281,778 |   |
| Other                                             |   |                | 117,671   |   |                   |   | 130,812 |   |
|                                              |   |                |      |   |                   |   |   |   |
| Commitments      and contingencies (Note 8)       |   |                |      |   |                   |   |   |   |
|                                              |   |                |      |   |                   |   |   |   |
| Total      partners' capital and liabilities      |   | $                   | 4,207,778 |   |                   | $      | 4,253,987 |   |

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

|                                                                                          |   | Three      Months Ended March 31, |    |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                          |   | 2009                              |    |   | 2008 |   |
|                                                                                          |   | (In      thousands)               |    |
| Cash      flows provided by operating activities:                                             |   |                              |    |   |   |   |
| Net      earnings                                                                             |   | $                                 | 32,889  |   |   | $ | 48,239 |   |
| Adjustments      to reconcile net earnings to net cash provided by operating      activities: |   |                              |    |   |   |   |   |   |
| Depreciation      and amortization                                                            |   |                              | 27,863  |   |   |   | 25,061 |   |
| Deferred      income taxes                                                                    |   |                              | 9,942   |   |   |   | 6,846 |   |
| Changes      in operating assets and liabilities                                              |   |                              | 24,967  |   |   |   | 4,097 |   |
| Net      cash flows provided by operating activities                                          |   |                              | 95,661  |   |   |   | 84,243 |   |
|                                                                                          |   |                              |    |   |   |   |   |   |
| Cash      flows provided by (used in) investing activities:                                   |   |                              |    |   |   |   |   |   |
| Net      decrease (increase) in note receivable - Southern Union                              |   |                              | (43,900 | ) |   |   | 110,300 |   |
| Net      increase in income taxes payable - related parties                                   |   |                              | 14,500  |   |   |   | 23,126 |   |
| Decrease      in note receivable - CrossCountry Citrus                                        |   |                              | 24,265  |   |   |   | - |   |
| Additions      to property, plant and equipment                                               |   |                              | (92,362 | ) |   |   | (204,355 | ) |
| Other                                                                                         |   |                              | 1,314   |   |   |   | (2,760 | ) |
| Net      cash flows used in investing activities                                              |   |                              | (96,183 | ) |   |   | (73,689 | ) |
|                                                                                          |   |                              |    |   |   |   |   |   |
| Cash      flows provided by (used in) financing activities:                                   |   |                              |    |   |   |   |   |   |
| Increase      (decrease) in book overdraft                                                    |   |                              | 529     |   |   |   | (10,566 | ) |
| Net      cash flows provided by (used in) financing activities                                |   |                              | 529     |   |   |   | (10,566 | ) |
|                                                                                          |   |                              |    |   |   |   |   |   |
| Change      in cash and cash equivalents                                                      |   |                              | 7       |   |   |   | (12 | ) |
|                                                                                          |   |                              |    |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                         |   |                              | 28      |   |   |   | 320 |   |
| Cash      and cash equivalents at end of period                                               |   | $                                 | 35      |   |   | $ | 308 |   |

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CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL AND COMPREHENSIVEINCOME

|                                                 |   | Partners'      Capital |      |   | Accumulated      Other Comprehensive Loss |   |    | Tax      Sharing Note Receivable-Southern Union |   |   | Total  |   |
|------------------------------------------------------|--------|------------------------|-----------|--------|-------------------------------------------|--------|---------|-------------------------------------------------|--------|--------|--------|--------|
|                                                 |   | (In      thousands)    |      |
|                                                 |   |                   |      |   |                                      |   |    |                                            |   |   |   |   |
| Balance      December 31, 2008                       |   | $                      | 1,342,821 |   |                                      | $      | (28,301 | )                                               |   | $      | (8,561 | )      |   | $ | 1,305,959 |   |
|                                                 |   |                   |      |   |                                      |   |    |                                            |   |   |   |   |   |   |   |   |
| Tax      sharing receivable - Southern Union         |   |                   | -         |   |                                      |   | -       |                                            |   |   | 835    |   |   |   | 835 |   |
|                                                 |   |                   |      |   |                                      |   |    |                                            |   |   |   |   |   |   |   |   |
| Comprehensive      income:                           |   |                   |      |   |                                      |   |    |                                            |   |   |   |   |   |   |   |   |
| Net      earnings                                    |   |                   | 32,889    |   |                                      |   | -       |                                            |   |   | -      |   |   |   | 32,889 |   |
| Net      change in other comprehensive loss (Note 6) |   |                   | -         |   |                                      |   | 1,220   |                                            |   |   | -      |   |   |   | 1,220 |   |
| Comprehensive      income                            |   |                   |      |   |                                      |   |    |                                            |   |   |   |   |   |   | 34,109 |   |
|                                                 |   |                   |      |   |                                      |   |    |                                            |   |   |   |   |   |   |   |   |
| Balance      March 31, 2009                          |   | $                      | 1,375,710 |   |                                      | $      | (27,081 | )                                               |   | $      | (7,726 | )      |   | $ | 1,340,903 |   |

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1.  Description of Business

| ·   | PEPL,      an indirect wholly-owned subsidiary of Southern Union    Company; |
|--------------------|------------------------------------------------------------------------------|

| ·   | Trunkline,      a direct wholly-owned subsidiary ofPEPL; |
|--------------------|----------------------------------------------------------|

| ·   | Sea      Robin, an indirect wholly-owned subsidiary of  PEPL; |
|--------------------|---------------------------------------------------------------|

| ·   | LNG      Holdings, an indirect wholly-owned subsidiary of  PEPL; |
|--------------------|------------------------------------------------------------------|

| ·   | Trunkline      LNG, a direct wholly-owned subsidiary of LNG Holdings;  and |
|--------------------|----------------------------------------------------------------------------|

| ·   | Southwest      Gas Storage, a direct wholly-owned subsidiary of  PEPL. |
|--------------------|------------------------------------------------------------------------|

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|                        |   | March      31, 2009 |    |   | December      31, 2008 |   |
|-----------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                        |   | (In      thousands) |    |
|                        |   |                |    |   |                   |   |
| Natural      gas (1)        |   | $                   | 123,570 |   |                   | $      | 182,547 |   |
| Materials      and supplies |   |                | 14,973  |   |                   |   | 14,056 |   |
| Total      current          |   |                | 138,543 |   |                   |   | 196,603 |   |
|                        |   |                |    |   |                   |   |   |   |
| Natural      gas (1)        |   |                | 11,637  |   |                   |   | 17,687 |   |
|                        |   | $                   | 150,180 |   |                   | $      | 214,290 |   |

| (1)   | Natural      gas volumes held for operations at March 31, 2009 and December 31, 2008      were 29,409,000 MMBtu and 31,751,000 MMBtu,  respectively. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | Three      Months Ended March 31, |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|
| Related Party Transactions                                    |   | 2009                              |   |   | 2008 |   |
|                                                          |   | (In      thousands)               |   |
|                                                          |   |                              |   |   |   |   |
| Transportation      and storage of natural gas  (1) |   | $                                 | 1,124  |   |   | $ | 1,356 |   |
| Operation,      maintenance and general - affiliates:         |   |                              |   |   |   |   |   |   |
| Management      and royalty fees                              |   |                              | 4,796  |   |   |   | 4,719 |   |
| Other      expenses  (2)                            |   |                              | 6,946  |   |   |   | 5,393 |   |
| Other      income (3)                                         |   |                              | 2,329  |   |   |   | 7,024 |   |

| (1)   | Represents      transportation and storage revenues with Missouri Gas Energy, a Southern      Union division. |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (2)   | Primarily      includes allocations of corporate charges from Southern Union, partially      offset for expenses attributable to services provided by Panhandle on      behalf of other affiliatecompanies. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Primarily      includes interest income associated with the Southern Union and      CrossCountry Citrus notereceivables. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

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|                                              |   | Three      Months Ended |   |   | Year      Ended        |   |
|---------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| Related      Party                                |   | March      31, 2009     |   |   | December      31, 2008 |   |
|                                              |   | (In      thousands)     |   |
|                                              |   |                    |   |
| Accounts      receivable - related parties (1)    |   | $                       | 4,597  |   |                   | $      | 6,596 |   |
|                                              |   |                    |   |   |                   |   |   |   |
| Accounts      payable - related parties:          |   |                    |   |   |                   |   |   |   |
| Southern      Union - income taxes  (2) |   | $                       | 67,550 |   |                   | $      | 56,424 |   |
| Southern      Union - other (3)                   |   |                    | 24,335 |   |                   |   | 15,249 |   |
| Other      (4)                                    |   |                    | 106    |   |                   |   | 222 |   |
|                                              |   | $                       | 91,991 |   |                   | $      | 71,895 |   |

| (1)   | Primarily      related to interest associated with the Note receivable – CrossCountry      Citrus and services provided forCitrus. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Related      to income taxes payable to Southern Union per the tax sharing agreement to      provide for taxes to be remitted upon the filing of the tax      return. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Primarily      related to payroll and incentive funding provided by Southern      Union. |
|-----------------|------------------------------------------------------------------------------------------|

| (4)   | Primarily      related to various administrative and operating costs paid by other      affiliate companies on behalf of theCompany. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| Long-term Debt Obligations             |   | March      31, 2009 |      |   | December      31, 2008 |   |
|----------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
|                                   |   | Carrying      Value |      |   | Fair      Value        |   |   | Carrying      Value |   |   | Fair      Value |   |
|                                   |   | (In      thousands) |      |
|                                   |   |                |      |   |                   |   |   |   |   |   |   |   |
| 6.05%      Senior Notes due 2013       |   | $                   | 250,000   |   |                   | $      | 228,775 |   |   | $ | 250,000 |   |   | $ | 211,646 |   |
| 6.20%      Senior Notes due 2017       |   |                | 300,000   |   |                   |   | 244,050 |   |   |   | 300,000 |   |   |   | 230,956 |   |
| 6.50%      Senior Notes due 2009       |   |                | 60,623    |   |                   |   | 60,320 |   |   |   | 60,623 |   |   |   | 59,604 |   |
| 8.25%      Senior Notes due 2010       |   |                | 40,500    |   |                   |   | 40,095 |   |   |   | 40,500 |   |   |   | 39,668 |   |
| 7.00%      Senior Notes due 2029       |   |                | 66,305    |   |                   |   | 49,729 |   |   |   | 66,305 |   |   |   | 46,158 |   |
| 7.00%      Senior Notes due 2018       |   |                | 400,000   |   |                   |   | 335,880 |   |   |   | 400,000 |   |   |   | 318,033 |   |
| Term      Loans due 2012               |   |                | 815,391   |   |                   |   | 746,341 |   |   |   | 815,391 |   |   |   | 753,262 |   |
| Net      premiums on long-term debt    |   |                | 1,746     |   |                   |   | 1,746 |   |   |   | 2,153 |   |   |   | 2,153 |   |
| Total      debt outstanding            |   |                | 1,934,565 |   |                   | $      | 1,706,936 |   |   |   | 1,934,972 |   |   | $ | 1,661,480 |   |
| Current      portion of long-term debt |   |                | (60,623   | )      |                   |   |   |   |   |   | (60,623 | ) |   |   |   |   |
| Total      long-term debt              |   | $                   | 1,873,942 |   |                   |   |   |   |   | $ | 1,874,349 |   |   |   |   |   |

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|                                                                       |   | Three      Months Ended March 31, |   |
|----------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                       |   | 2009                              |   |   | 2008 |   |
|                                                                       |   | (In      thousands)               |   |
|                                                                       |   |                              |   |   |   |   |
| Net      earnings                                                          |   | $                                 | 32,889 |   |   | $ | 48,239 |   |
| Reclassification      of unrealized loss on interest rate hedges into |   |                              |   |   |   |   |   |   |
| earnings,      net of tax of $1,441 and $184, respectively                 |   |                              | 2,147  |   |   |   | 277 |   |
|  Prior      service cost relating to other postretirement             |   |                              |   |   |   |   |   |   |
| benefit      plan amendment, net of tax of $0 and $3,231, respectively     |   |                              | -      |   |   |   | (6,603 | ) |
| Change      in fair value of interest rate hedges, net of tax of           |   |                              |   |   |   |   |   |   |
| $(415)      and $(12,466), respectively                                    |   |                              | (618   | ) |   |   | (19,130 | ) |
| Reclassification      of net actuarial loss and prior service credit  |   |                              |   |   |   |   |   |   |
| relating      to other postretirement benefits into earnings, net of tax   |   |                              |   |   |   |   |   |   |
| of      $(91) and $(245), respectively                                     |   |                              | (309   | ) |   |   | (441 | ) |
| Total      other comprehensive income (loss)                               |   |                              | 1,220  |   |   |   | (25,897 | ) |
|                                                                       |   |                              |   |   |   |   |   |   |
| Total      comprehensive income                                            |   | $                                 | 34,109 |   |   | $ | 22,342 |   |

|                                   |   | Three      Months Ended |   |
|----------------------------------------|--------|-------------------------|--------|
|                                   |   | March      31,          |   |
|                                   |   | 2009                    |   |   | 2008 |   |
|                                   |   | (In      thousands)     |   |
|                                   |   |                    |   |   |   |   |
| Service      cost                      |   | $                       | 550    |   |   | $ | 400 |   |
| Interest      cost                     |   |                    | 785    |   |   |   | 700 |   |
| Expected      return on plan assets    |   |                    | (600   | ) |   |   | (575 | ) |
| Prior      service credit amortization |   |                    | (522   | ) |   |   | (675 | ) |
| Recognized      actuarial loss         |   |                    | 125    |   |   |   | - |   |
| Net      periodic benefit cost         |   | $                       | 338    |   |   | $ | (150 | ) |

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|                                 |   | March      31, 2009 |   |   | December      31, 2008 |   |
|--------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|                                 |   | (In      thousands) |   |
|                                 |   |                |   |   |                   |   |
| Current                              |   | $                   | 1,052  |   |                   | $      | 1,052 |   |
| Noncurrent                           |   |                | 7,408  |   |                   |   | 6,989 |   |
| Total      Environmental Liabilities |   | $                   | 8,460  |   |                   | $      | 8,041 |   |

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Table of Contents

|                           |   |            |   |   | Fair      Value Measurements Using Fair Value Hierarchy |   |
|--------------------------------|--------|-----------------|--------|--------|---------------------------------------------------------|--------|
|                           |   |            |   |   |  Quoted      Prices in                             |   |   | Significant      Other  |   | Significant  |   |
|                           |   |            |   |   |  Active      Markets for                           |   |   |  Observable |   |   |  Unobservable |   |
|                           |   |            |   |   |  Identical      Assets                             |   |   |  Inputs |   |   |  Inputs |   |
| At      March 31, 2009         |   | Fair      Value |   |   | (Level      1)                                          |   |   | (Level      2) |   |   | (Level      3) |   |
| Liabilities:                   |   |            |   |   |                                                    |   |   |   |   |   |   |   |
| Interest-rate      derivatives |   | $               | 41,143 |   |                                                    | $      | - |   |   | $ | - |   |   | $ | 41,143 |   |
|    Total        |   | $               | 41,143 |   |                                                    | $      | - |   |   | $ | - |   |   | $ | 41,143 |   |

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Table of Contents

|                                                  |   | Three      Months Ended |   |
|-------------------------------------------------------|--------|-------------------------|--------|
|                                                  |   | March      31, 2009     |   |
|                                                  |   | (In      thousands)     |   |
| Interest-rate      Derivatives                        |   |                    |   |
| Balance      January 1, 2009                          |   | $                       | 43,630 |   |
| Total      gains or losses (realized and unrealized): |   |                    |   |   |
| Included      in earnings                             |   |                    | -      |   |
| Included      in other comprehensive income           |   |                    | 943    |   |
| Purchases      and settlements, net                   |   |                    | (3,430 | ) |
| Balance      March 31, 2009                           |   | $                       | 41,143 |   |

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Table of Contents

|                                     |        Asset      Derivatives |   | Liability      Derivatives |   |
|------------------------------------------|------------------------------------|--------|----------------------------|--------|
|                                     | Balance      Sheet Location        |   | Fair      Value (1)        |   | Balance      Sheet Location |   | Fair      Value (1) |   |
|                                     |                               |   | (In      thousands)        |   |   |   | (In      thousands) |   |
|        Cash      Flow Hedges        |                               |   |                       |   |   |   |   |   |
|        Interest      rate contracts |                               |   | $                          | -      |   |  Other      current liabilities |   | $ | 16,065 |   |
|                                     |                               |   |                       |   |   |  Other      noncurrent liabilities |   |   | 25,078 |   |
|                                     |                               |   |                       |   |   |   |   |   |   |   |
|                                     |                               |   | $                          | -      |   |   |   | $ | 41,143 |   |

| (1)   | See      Note 9 – Fair Value Measurement for information related to the framework      used by the Company to measure the fair value of its derivative      instruments as of March 31, 2009. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                  |   | Three      Months Ended |   |
|---------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                  |   | March      31, 2009     |   |
| Cash      Flow Hedges (1)                                                             |   | (In      thousands)     |   |
| Interest      rate contracts:                                                         |   |                    |   |
| Change      in fair value - increase in Accumulated other      comprehensive          |   |                    |   |
| loss, excluding tax      expense effect of $415                                       |   | $                       | 1,033  |   |
| Reclassification      of unrealized loss from Accumulated other      comprehensive    |   |                    |   |   |
| loss      - increase of Interest      expense, excluding tax expense effect of $1,441 |   |                    | 3,588  |   |
| Loss      on ineffectiveness of hedges                                                |   |                    | -      |   |

| (1)   | See      Note 6 – Comprehensive      Income for additional related  information. |
|-----------------|----------------------------------------------------------------------------------------|

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ITEM 2.  Management's Discussion and Analysis of FinancialCondition and Results of Operations

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|                                                  |   | Three      Months Ended March 31, |    |
|-------------------------------------------------------|--------|-----------------------------------|---------|
|                                                  |   | 2009                              |    |   | 2008 |   |
|                                                  |   | (In      thousands)               |    |
| Operating      revenue                                |   |                              |    |   |   |   |
| Transportation      and storage of natural gas        |   | $                                 | 157,117 |   |   | $ | 153,382 |   |
| LNG      terminalling revenue                         |   |                              | 33,077  |   |   |   | 30,890 |   |
| Other      revenue                                    |   |                              | 2,101   |   |   |   | 2,779 |   |
| Total      operating revenue                          |   |                              | 192,295 |   |   |   | 187,051 |   |
|                                                  |   |                              |    |   |   |   |   |   |
| Operating      expenses                               |   |                              |    |   |   |   |   |   |
| Operation,      maintenance and general               |   |                              | 82,988  |   |   |   | 60,692 |   |
| Depreciation      and amortization                    |   |                              | 27,863  |   |   |   | 25,061 |   |
| Taxes,      other than on income                      |   |                              | 8,925   |   |   |   | 8,649 |   |
| Total      operating expenses                         |   |                              | 119,776 |   |   |   | 94,402 |   |
|                                                  |   |                              |    |   |   |   |   |   |
|                                                  |   |                              |    |   |   |   |   |   |
| Operating      income                                 |   |                              | 72,519  |   |   |   | 92,649 |   |
|                                                  |   |                              |    |   |   |   |   |   |
| Other      income (expense)                           |   |                              |    |   |   |   |   |   |
| Interest      expense, net                            |   |                              | (20,181 | ) |   |   | (21,065 | ) |
| Other,      net                                       |   |                              | 2,454   |   |   |   | 7,511 |   |
| Total      other income (expense)                     |   |                              | (17,727 | ) |   |   | (13,554 | ) |
|                                                  |   |                              |    |   |   |   |   |   |
| Earnings      before income taxes                     |   |                              | 54,792  |   |   |   | 79,095 |   |
|                                                  |   |                              |    |   |   |   |   |   |
| Income      taxes                                     |   |                              | 21,903  |   |   |   | 30,856 |   |
|                                                  |   |                              |    |   |   |   |   |   |
| Net      earnings                                     |   | $                                 | 32,889  |   |   | $ | 48,239 |   |
|                                                  |   |                              |    |   |   |   |   |   |
| Operating      information:                           |   |                              |    |   |   |   |   |   |
| Panhandle      natural gas volumes transported (TBtu) |   |                              | 427     |   |   |   | 401 |   |

| ·   | Increased      transportation and storage revenue of $3.7 million primarily attributable      to: |
|--------------------|---------------------------------------------------------------------------------------------------|

| o   | Higher      parking revenues of $5 million resulting from customer demand for parking      services and market conditions; |
|---------------|----------------------------------------------------------------------------------------------------------------------------|

| o   | Higher      transportation reservation revenues of $2.2 million primarily due to an      increase of approximately $4.4 million attributable to the completion of      the primary portion of the Trunkline Field Zone Expansion project during      the period December 2007 to February 2008 and a smaller second phase      completed in November 2008, partially offset by the impact of      approximately $1.2 million of additional revenues in the 2008 period      attributable to the extra day in the 2008 leap year;  and |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Lower      transportation commodity revenues of $3.4 million primarily due to reduced      volumes flowing after Hurricane Ike;and |
|---------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      $2.2 million increase in LNG terminalling revenue primarily due to $1.2      million associated with a change in the power reimbursement mechanism in      the fourth quarter of 2008 that allows the Company to recover actual      monthly LNG power costs from the customer and approximately $1 million of      higher reservation revenues attributable to a one-time annual rate      increase associated with certain capacity effective January 1,      2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Higher      operation, maintenance and general expenses of $22.3 million primarily      attributable to: |
|--------------------|----------------------------------------------------------------------------------------------------------|

| o   | A      net increase in the provision for repair and abandonment costs of $16.1      million in 2009 for damages to offshore assets resulting from Hurricane      Ike, which is generally expected to be recovered in the future through      insurance recoveries and new rateproceedings; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | A      $2 million increase in contract storage costs resulting from an increase      in leased storage capacity; |
|---------------|------------------------------------------------------------------------------------------------------------------|

| o   | A      charge of $1.3 million in 2009 to record a lower of cost or market      adjustment for system gas owned by the Company;  and |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------|

| o   | A $1.2 million increase in LNG power      costs resulting from actual costs recovered in rates through the power      reimbursement mechanism; and |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increased      depreciation and amortization expense of $2.8 million due to a $222      million increase in property, plant and equipment placed in service after      March 31, 2008.  Depreciation and amortization expense is      expected to continue to increase primarily due to higher capital spending,      primarily from the LNG terminal infrastructure enhancement construction      project. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | A      decrease in Interest      income - affiliates of $4.7 million primarily due to lower interest      income associated with the affiliate note receivables resulting from lower      LIBOR rates in the 2009 period compared to the 2008 period;      and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Lower      interest expense of $900,000 primarily attributable to the retirement of      the $300 million 4.80% Senior Notes in August 2008, lower interest rates      on the Company’s variable rate debt, and higher capitalized interest      resulting from higher average capital project balances outstanding in the      2009 period versus the 2008 period, partially offset by higher interest      expense resulting from the $400 million 7.00% Senior Notes issued in June      2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

ITEM 3.  Quantitative and Qualitative Disclosures About MarketRisk

ITEM 4.  Controls and Procedures

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Table of Contents

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| ·   | changes      in demand for natural gas and related services by the Company’s customers,      in the composition of the Company’s customer base and in the sources of      natural gas available to theCompany; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      effects of inflation and the timing and extent of changes in the prices      and overall demand for and availability of natural gas as well as      electricity, oil, coal and other bulk materials and    chemicals; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | adverse      weather conditions, such as warmer than normal weather in the Company’s      service territories, and the operational impact of natural      disasters; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in laws or regulations, third-party relations and approvals, decisions of      courts, regulators and governmental bodies affecting or involving the      Company, including deregulation initiatives and the impact of rate and      tariff proceedings before FERC and various state regulatory      commissions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      outcome of pending and futurelitigation; |
|--------------------|---------------------------------------------------|

| ·   | the      Company’s ability to comply with or to challenge successfully existing or      new environmental regulations; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | unanticipated      environmental liabilities; |
|--------------------|-----------------------------------------------|

| ·   | the      Company’s ability to acquire new businesses and assets and integrate those      operations into its existing operations, as well as its ability to expand      its existing businesses andfacilities; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      Company’s ability to control costs successfully and achieve operating      efficiencies, including the purchase and implementation of new      technologies for achieving suchefficiencies; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      impact of factors affecting operations such as maintenance or repairs,      environmental incidents, gas pipeline system constraints and relations      with labor unions representing bargaining-unit  employees; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | exposure      to customer concentration with a significant portion of revenues realized      from a relatively small number of customers and any credit risks      associated with the financial position of those  customers; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in the ratings of the debt securities of the Company or any of its      subsidiaries; |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | changes      in interest rates and other general capital markets conditions, and in the      Company’s ability to continue to access the capital    markets; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | acts      of nature, sabotage, terrorism or other acts causing damage greater than      the Company’s insurance coveragelimits; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | market      risks beyond the Company’s control affecting its risk management      activities including market liquidity, commodity price volatility and      counterparty creditworthiness; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other      risks and unforeseen events. |
|--------------------|-----------------------------------------|

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Table of Contents

ITEM 1. Legal Proceedings

ITEM 1A.  Risk Factors

ITEM 2.  Unregistered Sales of Equity Securities and Use ofProceeds

ITEM 3.  Defaults Upon Senior Securities

ITEM 4.  Submission of Matters to a Vote of SecurityHolders

ITEM 5.  Other Information

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Table of Contents

ITEM 6. Exhibits 

| Exhibit      No.             | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3(a)                         | Certificate      of Formation of Panhandle Eastern Pipe Line Company,      LP.  (Filed as Exhibit 3.A to the Form 10-K for the year ended      December 31, 2004 and incorporated herein byreference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 3(b)                         | Limited      Partnership Agreement of Panhandle Eastern Pipe Line Company, LP, dated as      of June 29, 2004, between Southern Union Company and Southern Union      Panhandle LLC.  (Filed as Exhibit 3.B to the Form 10-K for the      year ended December 31, 2004 and incorporated herein by      reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4(a)                         | Indenture      dated as of March 29, 1999, among CMS Panhandle Holding Company, Panhandle      Eastern Pipe Line Company and The Bank of New York Trust Company, N.A.,      successor to NBD Bank, as Trustee. (Filed as Exhibit 4(a) to the Form 10-Q      for the quarter ended March 31, 1999, and incorporated herein by      reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4(b)                         | First      Supplemental Indenture dated as of March 29, 1999, among CMS Panhandle      Holding Company, Panhandle Eastern Pipe Line Company and The Bank of New      York Trust Company, N.A., successor to NBD Bank, as Trustee, including a      form of Guarantee by Panhandle Eastern Pipe Line Company of the      obligations of CMS Panhandle Holding Company. (Filed as Exhibit 4(b) to      the Form 10-Q for the quarter ended March 31, 1999, and incorporated      herein by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4(c)                         | Second      Supplemental Indenture dated as of March 27, 2000, between Panhandle, as      Issuer and The Bank of New York Trust Company, N.A., successor to Bank One      Trust Company, National Association, as Trustee. (Filed as Exhibit 4(e) to      the Form S-4 (File No. 333-39850) filed on June 22, 2000, and incorporated      herein by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4(d)                         | Third      Supplemental Indenture dated as of August 18, 2003, between Panhandle, as      Issuer and The Bank of New York Trust Company, N.A., successor to Bank One      Trust Company, National Association, as Trustee. (Filed as Exhibit 4(d) to      the Form 10-Q for the quarter ended September 30, 2003, and incorporated      herein by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4(e)                         | Fourth      Supplemental Indenture dated as of March 12, 2004, between Panhandle, as      Issuer and The Bank of New York Trust Company, N.A., successor to J.P.      Morgan Trust Company, National Association, as Trustee.  (Filed      as Exhibit 4.E to the Form 10-K for the year ended December 31, 2004 and      incorporated herein by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4(f)                         | Fifth      Supplemental Indenture dated as of October 26, 2007, between Panhandle and      The Bank of New York Trust Company, N.A., as Trustee (Filed as Exhibit 4.1      to Panhandle’s Current Report on Form 8-K filed on October 29, 2007 and      incorporated herein by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4(g)  4(h)         | Form      of Sixth Supplemental Indenture, dated as of June 12, 2008, between      Panhandle and The Bank of New York Trust Company, N.A., as Trustee (Filed      as Exhibit 4.1 to Panhandle’s Current Report on Form 8-K filed on June 11,      2008 and incorporated herein by reference.) Indenture      dated as of February 1, 1993, between Panhandle and Morgan Guaranty Trust      Company effective January 1, 1982, as amended December 3,      1999.  (Filed as Exhibit 4 to the Form S-3 filed February 19,      1993, and incorporated herein by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10(a)                        | Amended      and Restated Credit Agreement between Trunkline LNG Holdings, LLC, as      borrower, Panhandle Eastern Pipe Line Company, LP and CrossCountry Citrus,      LLC, as guarantors, the financial institutions listed therein and      Bayerische Hypo-Und Vereinsbank AG, New York Branch, as administrative      agent, dated as of June 29, 2007 (Filed as Exhibit 10.1 to Panhandle’s      Current Report on Form 8-K filed on July 6, 2007 and incorporated herein      by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10(b)   10(c) | Amendment      Number 1 to the Amended and Restated Credit Agreement between Trunkline      LNG Holdings, LLC as borrower, Panhandle Eastern Pipe Line Company, LP and      CrossCountry Citrus, LLC, as guarantors, the financial institutions listed      therein and Bayerische Hypo-Und Vereinsbank AG, New York Branch, as      administrative agent, dated as of June 13, 2008 (Filed as Exhibit 10(b) to      the Form 10-Q for the quarter ended June 30, 2008 and incorporated herein      by reference.) Credit      Agreement between Trunkline LNG Holdings, LLC, as borrower, Panhandle      Eastern Pipe Line Company, LP and Trunkline LNG Company, LLC, as      guarantors, the financial institutions listed therein and Bayerische Hypo-      Und Vereinsbank AG, New York Branch, as administrative agent, dated as of      March 15, 2007.  (Filed as Exhibit 10.1 to Panhandle’s Current      Report on Form 8-K filed on March 21, 2007 and incorporated herein by      reference.) |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10(d)                        | Amended      and Restated Promissory Note made by CrossCountry Citrus, LLC, as      borrower, in favor of Trunkline LNG Holdings LLC, as holder, dated as of      June 13, 2008 (Filed as Exhibit 10(d) to the Form 10-Q for the quarter      ended June 30, 2008 and incorporated herein by reference.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12                           | Ratio      of Earnings to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.1                         | Certificate      by President and Chief Operating Officer pursuant to Rule 13a – 14(a) or      15d – 14(a) promulgated under the Securities Exchange Act of 1934, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.2                         | Certificate      by Senior Vice President and Chief Financial Officer pursuant to Rule 13a      – 14(a) or 15d – 14(a)  promulgated under the Securities      Exchange Act of 1934, as adopted pursuant toSection      302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.1                         | Certificate      by President and Chief Operating Officer pursuant to Rule 13a – 14(b) or      15d – 14(b) promulgated under the Securities Exchange Act of 1934 and      Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section      1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.2                         | Certificate      by Senior Vice President and Chief Financial Officer pursuant to Rule 13a      – 14(b) or 15d – 14(b) promulgated under the Securities Exchange Act of      1934 and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section      1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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SIGNATURES

|                               | PANHANDLE      EASTERN PIPE LINE COMPANY, LP                                                                                                                                                                                                                                      |
|------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                              |
| Date:  May      11, 2009 | By:      /s/   ROBERT      O. BOND                                                                                                                                                                                                                                 |
|                               | Robert      O. BondPresident      and Chief Operating Officer(authorized      officer)      /s/   GARY      W. LEFELARGary      W. LefelarSenior      Vice President and Chief Accounting Officer(principal      accounting officer) |
|                               |                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                              |
|                               |                                                                                                                                                                                                                                                                              |

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