| RATIO      OF EARNINGS TO FIXED CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
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| The      following table sets forth the consolidated ratio of earnings to fixed      charges on an historical basis for the nine months ended September 30,      2008, the years ended December 31, 2007, 2006, 2005 and 2004, and for the      periods June 12 through December 31, 2003 and January 1 through June 11,      2003. Post-acquisition financial statements reflect a new basis of      accounting and pre-acquisition period and post-acquisition period      financial results (separated by a heavy black line) are presented but are      not comparable. The heavy black line separating January 1 through      June 11, 2003 from June 12 through December 31, 2003 relates to the      acquisition of Panhandle by Southern Union from CMS Energy, effective June      11, 2003.                       |   |
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| For      the purpose of calculating such ratios, “earnings” consist of pre-tax      income from continuing operations before income or loss from equity      investees, adjusted to reflect distributed income from equity investments,      and fixed charges, less capitalized interest. “Fixed charges” consist      of interest costs, amortization of debt discount, premiums and issuance      costs and an estimate of interest implicit in rentals. No adjustment      has been made to earnings for the amortization of capital interest for the      periods presented as such amount is immaterial. Interest on FIN 48      liabilities is excluded from the computation of fixed charges as it is      recorded by the Company in income tax expense versus interest      expense. |   |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 9      Months Ended |   |   | Year      Ended December 31, |   |   | June      12 - |   |   | January      1 - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | September      30, 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | December      31, 2003 |   |   | June      11, 2003 |   |
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| FIXED      CHARGES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 67,166 |   |   | $ | 83,748 |   |   | $ | 63,322 |   |   | $ | 49,578 |   |   | $ | 52,435 |   |   | $ | 29,098 |   |   | $ | 37,802 |   |
| Net      amortization of debt discount, premium and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   issuance      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (1,077 | ) |   |   | (1,197 | ) |   |   | (1,333 | ) |   |   | (1,293 | ) |   |   | (4,006 | ) |   |   | (3,561 | ) |   |   | (2,386 | ) |
| Capitalized      Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 14,264 |   |   |   | 14,203 |   |   |   | 4,645 |   |   |   | 8,838 |   |   |   | 4,812 |   |   |   | 1,624 |   |   |   | 987 |   |
| Interest      portion of rental expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 2,080 |   |   |   | 3,582 |   |   |   | 3,780 |   |   |   | 4,284 |   |   |   | 4,453 |   |   |   | 745 |   |   |   | 595 |   |
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| Total      Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 82,433 |   |   | $ | 100,336 |   |   | $ | 70,414 |   |   | $ | 61,407 |   |   | $ | 57,694 |   |   | $ | 27,906 |   |   | $ | 36,998 |   |
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| EARNINGS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      pre-tax income (loss) from continuing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $ | 185,740 |   |   | $ | 246,742 |   |   | $ | 225,794 |   |   | $ | 166,189 |   |   | $ | 143,989 |   |   | $ | 84,773 |   |   | $ | 78,543 |   |
| Earnings      of equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (244 | ) |   |   | (299 | ) |   |   | (172 | ) |   |   | (226 | ) |   |   | (216 | ) |   |   | (136 | ) |   |   | (411 | ) |
| Distributed      income from equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | - |   |   |   | - |   |   |   | 174 |   |   |   | 203 |   |   |   | 174 |   |   |   | - |   |   |   | 1,066 |   |
| Capitalized      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (14,264 | ) |   |   | (14,203 | ) |   |   | (4,645 | ) |   |   | (8,838 | ) |   |   | (4,812 | ) |   |   | (1,624 | ) |   |   | (987 | ) |
| SFAS      145 Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Minority      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      fixed charges (from above)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 82,433 |   |   |   | 100,336 |   |   |   | 70,414 |   |   |   | 61,407 |   |   |   | 57,694 |   |   |   | 27,906 |   |   |   | 36,998 |   |
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| Earnings      Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 253,665 |   |   | $ | 332,576 |   |   | $ | 291,565 |   |   | $ | 218,735 |   |   | $ | 196,829 |   |   | $ | 110,919 |   |   | $ | 115,209 |   |
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| Ratio      of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 3.1 |   |   |   | 3.3 |   |   |   | 4.1 |   |   |   | 3.6 |   |   |   | 3.4 |   |   |   | 4.0 |   |   |   | 3.1 |   |