----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D. C. 20549**

**_______________**

**FORM      10-Q**

**For      the quarterly period ended **

**September      30, 2005**

**Commission      File No. 1-2921**

**_______________**

**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

| **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) |                               |

**(713)      989-7000**

| Title                of each Class                   |   | Name                of each exchange in which registered |
|------------------------------------------------------|--------|----------------------------------------------------------|
| 4.80%                Senior Notes due 2008, Series B |   | New                York Stock Exchange                   |
| 6.05%                Senior Notes due 2013, Series B |   | New                York Stock Exchange                   |

**P**

** **
**P**

** **
**P**

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**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

**FORM      10-Q**

**September      30, 2005**

**Index**

| **PART                I. FINANCIAL INFORMATION:**                                                                                             | Page(s) |
|-----------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                          |    |
| ITEM                1. Financial Statements (Unaudited):                                                                                      |    |
|                                                                                                                                          |    |
| Consolidated                statement of operations - three and nine months ended September 30,                2005                and 2004.  | 2-3     |
|                                                                                                                                          |    |
| Consolidated                balance sheet - September 30, 2005 and December                31, 2004.                                          | 4-5     |
|                                                                                                                                          |    |
| Consolidated                statement of cash flows                -                nine months ended September 30, 2005 and 2004.            | 6       |
|                                                                                                                                          |    |
| Consolidated                statement of owners’ equity and comprehensive                income - nine months ended September 30, 2005. | 7       |
|                                                                                                                                          |    |
| Notes                to consolidated financial                statements.                                                                     | 8-21    |
|                                                                                                                                          |    |
| ITEM                2. Management's Discussion and Analysis of Results of                Operations and Financial Condition.                  | 22-31   |
|                                                                                                                                          |    |
| ITEM                3. Quantitative and Qualitative Disclosures about                Market Risk.                                             | 31      |
|                                                                                                                                          |    |
| ITEM                4. Controls and Procedures.                                                                                               | 31      |
|                                                                                                                                          |    |
| **PART                II. OTHER INFORMATION:**                                                                                                |    |
|                                                                                                                                          |    |
| ITEM                1. Legal Proceedings.                                                                                                     | 32      |
|                                                                                                                                          |    |
| ITEM                2. Unregistered Sales of Equity Securities and                Use of Proceeds.                                            | 32      |
|                                                                                                                                          |    |
| ITEM                3. Defaults Upon Senior                Securities.                                                                        | 32      |
|                                                                                                                                          |    |
| ITEM                4. Submission of Matters to a Vote of Security                Holders.                                                    | 33      |
|                                                                                                                                          |    |
| ITEM                5. Other Information.                                                                                                     | 33      |
|                                                                                                                                          |    |
| ITEM                6. Exhibits.                                                                                                              | 33      |
|                                                                                                                                          |    |
| SIGNATURES                                                                                                                                    | 34      |
|                                                                                                                                          |    |

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*Table          of Contents*

**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

**CONSOLIDATED      STATEMENT OF OPERATIONS**

**(Unaudited)**

**(In      Thousands)**

|                                                             |   | **Three                  Months Ended** |    | **Three                  Months Ended** |   |
|------------------------------------------------------------------|--------|-----------------------------------------|---------|-----------------------------------------|--------|
|                                                             |   | **September                  30,**      |    | **September                  30,**      |   |
|                                                             |   | **2005**                                |    | **2004**                                |   |
|                                                             |   |                                    |    |                                    |   |
| **Operating                  revenue**                           |   |                                    |    |                                    |   |
| Transportation                  and storage of natural gas  |   | $                                       | 98,799  |                                    | $      | 91,800 |   |
| LNG                  terminalling revenue                   |   |                                    | 15,046  |                                    |   | 15,004 |   |
| Other                  revenue                              |   |                                    | 2,100   |                                    |   | 2,460 |   |
|  Total                  operating revenue                   |   |                                    | 115,945 |                                    |   | 109,264 |   |
|                                                             |   |                                    |    |                                    |   |   |   |
| **Operating                  expenses**                          |   |                                    |    |                                    |   |   |   |
| Operation,                  maintenance and general         |   |                                    | 47,378  |                                    |   | 49,125 |   |
| Depreciation                  and amortization              |   |                                    | 15,145  |                                    |   | 15,178 |   |
| Taxes,                  other than on income                |   |                                    | 7,313   |                                    |   | 7,044 |   |
|  Total                  operating expenses                  |   |                                    | 69,836  |                                    |   | 71,347 |   |
|                                                             |   |                                    |    |                                    |   |   |   |
|                                                             |   |                                    |    |                                    |   |   |   |
| **Operating                  income**                            |   |                                    | 46,109  |                                    |   | 37,917 |   |
|                                                             |   |                                    |    |                                    |   |   |   |
| **Other                  income (expense)**                      |   |                                    |    |                                    |   |   |   |
| Interest                  expense, net                      |   |                                    | (11,950 | )                                       |   | (12,030 | ) |
| Other,                  net                                 |   |                                    | 1,142   |                                    |   | 500 |   |
|  Total                  other income (expense)              |   |                                    | (10,808 | )                                       |   | (11,530 | ) |
|                                                             |   |                                    |    |                                    |   |   |   |
| **Earnings                  before income taxes**                |   |                                    | 35,301  |                                    |   | 26,387 |   |
|                                                             |   |                                    |    |                                    |   |   |   |
| **Income                  taxes**                                |   |                                    | 13,831  |                                    |   | 10,331 |   |
|                                                             |   |                                    |    |                                    |   |   |   |
|                                                             |   |                                    |    |                                    |   |   |   |
| **Net                  earnings**                                |   | $                                       | 21,470  |                                    | $      | 16,056 |   |
|                                                             |   |                                    |    |                                    |   |   |   |

----

*Table          of Contents*

**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

**CONSOLIDATED      STATEMENT OF OPERATIONS**

**(Unaudited)**

**(In      Thousands)**

|                                                             |   | **Nine                  Months Ended** |    | **Nine                  Months Ended** |   |
|------------------------------------------------------------------|--------|----------------------------------------|---------|----------------------------------------|--------|
|                                                             |   | **September                  30,**     |    | **September                  30,**     |   |
|                                                             |   | **2005**                               |    | **2004**                               |   |
|                                                             |   |                                   |    |                                   |   |
| **Operating                  revenue**                           |   |                                   |    |                                   |   |   |   |
| Transportation                  and storage of natural gas  |   | $                                      | 313,561 |                                   | $      | 305,564 |   |
| LNG                  terminalling revenue                   |   |                                   | 41,815  |                                   |   | 42,847 |   |
| Other                  revenue                              |   |                                   | 6,390   |                                   |   | 7,273 |   |
|  Total                  operating revenue                   |   |                                   | 361,766 |                                   |   | 355,684 |   |
|                                                             |   |                                   |    |                                   |   |   |   |
| **Operating                  expenses**                          |   |                                   |    |                                   |   |   |   |
| Operation,                  maintenance and general         |   |                                   | 145,693 |                                   |   | 151,434 |   |
| Depreciation                  and amortization              |   |                                   | 45,537  |                                   |   | 45,201 |   |
| Taxes,                  other than on income                |   |                                   | 21,518  |                                   |   | 21,244 |   |
|  Total                  operating expenses                  |   |                                   | 212,748 |                                   |   | 217,879 |   |
|                                                             |   |                                   |    |                                   |   |   |   |
|                                                             |   |                                   |    |                                   |   |   |   |
| **Operating                  income**                            |   |                                   | 149,018 |                                   |   | 137,805 |   |
|                                                             |   |                                   |    |                                   |   |   |   |
| **Other                  income (expense)**                      |   |                                   |    |                                   |   |   |   |
| Interest                  expense, net                      |   |                                   | (35,297 | )                                      |   | (36,209 | ) |
| Other,                  net                                 |   |                                   | 3,888   |                                   |   | 1,840 |   |
|  Total                  other income (expense)              |   |                                   | (31,409 | )                                      |   | (34,369 | ) |
|                                                             |   |                                   |    |                                   |   |   |   |
| **Earnings                  before income taxes**                |   |                                   | 117,609 |                                   |   | 103,436 |   |
|                                                             |   |                                   |    |                                   |   |   |   |
| **Income                  taxes**                                |   |                                   | 45,999  |                                   |   | 40,179 |   |
|                                                             |   |                                   |    |                                   |   |   |   |
|                                                             |   |                                   |    |                                   |   |   |   |
| **Net                  earnings**                                |   | $                                      | 71,610  |                                   | $      | 63,257 |   |
|                                                             |   |                                   |    |                                   |   |   |   |

----

*Table          of Contents*

**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

**CONSOLIDATED      BALANCE SHEET**

**(Unaudited)**

**(In      Thousands)**

|                                                                                                             |   | **September                  30, 2005** |      | **December                  31, 2004** |   |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|----------------------------------------|--------|
| **Assets**                                                                                                       |   |                                    |      |                                   |   |
|                                                                                                             |   |                                    |      |                                   |   |
| **Property,                  plant and equipment**                                                               |   |                                    |      |                                   |   |   |   |
| Plant                  in service                                                                           |   | $                                       | 2,094,079 |                                   | $      | 1,947,524 |   |
| Construction                  work-in-progress                                                              |   |                                    | 197,148   |                                   |   | 203,094 |   |
|                                                                                                             |   |                                    | 2,291,227 |                                   |   | 2,150,618 |   |
| Less                  accumulated depreciation and amortization                                             |   |                                    | 129,491   |                                   |   | 87,683 |   |
|  Net                  property, plant and equipment                                                         |   |                                    | 2,161,736 |                                   |   | 2,062,935 |   |
|                                                                                                             |   |                                    |      |                                   |   |   |   |
| **Investment                  in affiliate**                                                                     |   |                                    | 1,411     |                                   |   | 1,436 |   |
|                                                                                                             |   |                                    |      |                                   |   |   |   |
| **Current                  assets**                                                                              |   |                                    |      |                                   |   |   |   |
| Cash                  and cash equivalents                                                                  |   |                                    | 636       |                                   |   | 26,054 |   |
| Accounts                  receivable, less allowances of $1,172 and $1,289, respectively                    |   |                                    | 44,352    |                                   |   | 48,085 |   |
| Accounts                  receivable - related parties                                                      |   |                                    | 8,669     |                                   |   | 7,287 |   |
| Gas                  imbalances - receivable                                                                |   |                                    | 75,732    |                                   |   | 36,122 |   |
| System                  gas and operating supplies                                                          |   |                                    | 66,829    |                                   |   | 98,250 |   |
| Deferred                  income taxes, net                                                                 |   |                                    | 3,874     |                                   |   | 10,698 |   |
| Note                  receivable - Southern Union                                                           |   |                                    | 115,380   |                                   |   | 90,745 |   |
| Other                                                                                                       |   |                                    | 10,107    |                                   |   | 11,646 |   |
|  Total                  current assets                                                                      |   |                                    | 325,579   |                                   |   | 328,887 |   |
|                                                                                                             |   |                                    |      |                                   |   |   |   |
| Intangibles,                  net                                                                           |   |                                    | 8,147     |                                   |   | 8,496 |   |
| Restricted                  cash                                                                            |   |                                    | -         |                                   |   | 1,500 |   |
| Debt                  issuance cost                                                                         |   |                                    | 3,949     |                                   |   | 4,471 |   |
| Non-current                  system gas                                                                     |   |                                    | 26,110    |                                   |   | 30,471 |   |
| Other                                                                                                       |   |                                    | 4,326     |                                   |   | 1,964 |   |
|                                                                                                             |   |                                    |      |                                   |   |   |   |
| **Total                  assets**                                                                           |   | $                                       | 2,531,258 |                                   | $      | 2,440,160 |   |
|                                                                                                             |   |                                    |      |                                   |   |   |   |

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*Table          of Contents*

**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

**CONSOLIDATED      BALANCE SHEET**

**(Unaudited)**

**(In      Thousands)**

|                                                                |   | **September                  30, 2005** |      | **December                  31, 2004** |   |
|---------------------------------------------------------------------|--------|-----------------------------------------|-----------|----------------------------------------|--------|
| **Owners'                  equity**                                 |   |                                    |      |                                   |   |
| Partners'                  capital                             |   | $                                       | 874,016   |                                   | $      | 802,406 |   |
| Accumulated                  other comprehensive income        |   |                                    | 1,614     |                                   |   | 1,231 |   |
| Tax                  sharing note receivable - Southern Union  |   |                                    | (50,862   | )                                      |   | (70,971 | ) |
|  Total                  owners' equity                         |   |                                    | 824,768   |                                   |   | 732,666 |   |
|                                                                |   |                                    |      |                                   |   |   |   |
| Long-term                  debt                                |   |                                    | 1,179,686 |                                   |   | 1,174,065 |   |
|  Total                  capitalization                         |   |                                    | 2,004,454 |                                   |   | 1,906,731 |   |
|                                                                |   |                                    |      |                                   |   |   |   |
| **Current                  liabilities**                            |   |                                    |      |                                   |   |   |   |
| Current                  portion of long-term debt             |   |                                    | -         |                                   |   | 12,548 |   |
| Accounts                  payable                              |   |                                    | 4,557     |                                   |   | 3,449 |   |
| Accounts                  payable - overdrafts                 |   |                                    | 10,610    |                                   |   | 20,103 |   |
| Accounts                  payable - related parties            |   |                                    | 10,166    |                                   |   | 3,478 |   |
| Gas                  imbalances - payable                      |   |                                    | 77,508    |                                   |   | 102,567 |   |
| Accrued                  taxes                                 |   |                                    | 19,964    |                                   |   | 10,750 |   |
| Accrued                  interest                              |   |                                    | 5,883     |                                   |   | 19,119 |   |
| Other                                                          |   |                                    | 111,739   |                                   |   | 85,239 |   |
|  Total                  current liabilities                    |   |                                    | 240,427   |                                   |   | 257,253 |   |
|                                                                |   |                                    |      |                                   |   |   |   |
| Deferred                  income taxes, net                    |   |                                    | 189,411   |                                   |   | 172,193 |   |
| Post-retirement                  benefits                      |   |                                    | 28,458    |                                   |   | 30,449 |   |
| Other                                                          |   |                                    | 68,508    |                                   |   | 73,534 |   |
| Commitments                  and contingencies                 |   |                                    |      |                                   |   |   |   |
|                                                                |   |                                    |      |                                   |   |   |   |
| **Total                  owners' equity and liabilities**      |   | $                                       | 2,531,258 |                                   | $      | 2,440,160 |   |
|                                                                |   |                                    |      |                                   |   |   |   |

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*Table          of Contents*

**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

**CONSOLIDATED      STATEMENT OF CASH FLOWS**

**(Unaudited)**

**(In      Thousands)**

|                                                                                                           |   | **Nine                  Months Ended** |     | **Nine                  Months Ended** |   |
|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|----------|----------------------------------------|--------|
|                                                                                                           |   | **September                  30,**     |     | **September                  30,**     |   |
|                                                                                                           |   | **2005**                               |     | **2004**                               |   |
|                                                                                                           |   |                                   |     |                                   |   |
| **Cash                  Flows From (Used In) Operating Activities**                                            |   |                                   |     |                                   |   |   |   |
| Net                  earnings                                                                                  |   | $                                      | 71,610   |                                   | $      | 63,257 |   |
| Adjustments                  to reconcile net earnings to net cash from operating                  activities: |   |                                   |     |                                   |   |   |   |
| Depreciation                  and amortization                                                                 |   |                                   | 45,537   |                                   |   | 45,201 |   |
| Gain                  on extinguishment of debt                                                                |   |                                   | -        |                                   |   | (231 | ) |
| Deferred                  income taxes                                                                         |   |                                   | 23,784   |                                   |   | 29,159 |   |
| Debt                  premium and discount amortization, net                                                   |   |                                   | (977     | )                                      |   | (4,429 | ) |
| Changes                  in operating assets and liabilities:                                                  |   |                                   |     |                                   |   |   |   |
| Accounts                  receivable                                                                           |   |                                   | 2,352    |                                   |   | 16,485 |   |
| Inventory                                                                                                      |   |                                   | 2,529    |                                   |   | 7,374 |   |
| Gas                  imbalances - receivable                                                                   |   |                                   | 736      |                                   |   | (332 | ) |
| Other                  assets                                                                                  |   |                                   | 46       |                                   |   | (9,564 | ) |
| Payables                                                                                                       |   |                                   | 7,796    |                                   |   | 7,922 |   |
| Accrued                  taxes                                                                                 |   |                                   | 29,323   |                                   |   | 9,271 |   |
| Interest                  accrued                                                                              |   |                                   | (13,236  | )                                      |   | (12,094 | ) |
| Gas                  imbalances - payable                                                                      |   |                                   | (207     | )                                      |   | - |   |
| Other                  liabilities                                                                             |   |                                   | (6,814   | )                                      |   | (20,333 | ) |
| Net                  cash flows from operating activities                                                      |   |                                   | 162,479  |                                   |   | 131,686 |   |
|                                                                                                           |   |                                   |     |                                   |   |   |   |
| **Cash                  Flows Used In Investing Activities**                                                   |   |                                   |     |                                   |   |   |   |
| Net                  increase in note receivable - Southern Union                                              |   |                                   | (24,635  | )                                      |   | (11,520 | ) |
| Capital                  and investment expenditures                                                           |   |                                   | (150,161 | )                                      |   | (109,509 | ) |
| Retirements                  and other                                                                         |   |                                   | (447     | )                                      |   | (264 | ) |
| Net                  cash flows used in investing activities                                                   |   |                                   | (175,243 | )                                      |   | (121,293 | ) |
|                                                                                                           |   |                                   |     |                                   |   |   |   |
| **Cash                  Flows From (Used In) Financing Activities**                                            |   |                                   |     |                                   |   |   |   |
| Increase                  (decrease) in bank overdrafts                                                        |   |                                   | (9,493   | )                                      |   | 4,123 |   |
| Debt                  issuance                                                                                 |   |                                   | 255,626  |                                   |   | 200,000 |   |
| Debt                  retirements                                                                              |   |                                   | (258,433 | )                                      |   | (206,904 | ) |
| Debt                  issuance costs                                                                           |   |                                   | (354     | )                                      |   | (1,050 | ) |
| Net                  cash flows from (used in) financing activities                                            |   |                                   | (12,654  | )                                      |   | (3,831 | ) |
|                                                                                                           |   |                                   |     |                                   |   |   |   |
| Net                  decrease in cash and cash equivalents                                                     |   |                                   | (25,418  | )                                      |   | 6,562 |   |
|                                                                                                           |   |                                   |     |                                   |   |   |   |
| **Cash                  and cash equivalents at beginning of period**                                          |   |                                   | 26,054   |                                   |   | 16,810 |   |
| **Cash                  and cash equivalents at end of period**                                                |   | $                                      | 636      |                                   | $      | 23,372 |   |
|                                                                                                           |   |                                   |     |                                   |   |   |   |
|                                                                                                           |   |                                   |     |                                   |   |   |   |
| **Supplemental                  disclosures of cash flow information**                                         |   |                                   |     |                                   |   |   |   |
| **Cash                  paid during the period for:**                                                          |   |                                   |     |                                   |   |   |   |
| Interest                  (net of interest rate swap and amounts capitalized)                                  |   | $                                      | 61,163   |                                   | $      | 63,405 |   |
| Income                  taxes (net of refunds)                                                                 |   |                                   | -        |                                   |   | 76 |   |

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*Table          of Contents*

**PANHANDLE      EASTERN PIPE LINE COMPANY, LP**

**CONSOLIDATED      STATEMENT OF OWNERS’ EQUITY AND COMPREHENSIVE INCOME **

**(Unaudited)**

**(In      Thousands)**

|                                                                            |   | Partners'                  Capital |    | Accumulated                  Other Comprehensive Income |   |  Tax                  Sharing Note Receivable-Southern Union |   | Total  |    |
|---------------------------------------------------------------------------------|--------|------------------------------------|---------|---------------------------------------------------------|--------|-------------------------------------------------------------------|--------|--------|---------|
|                                                                            |   |                               |    |                                                    |   |                                                         |   |   |    |
|                                                                            |   |                               |    |                                                    |   |                                                              |   |   |    |   |   |   |   |
| Balance                  January 1, 2005                                        |   | $                                  | 802,406 |                                                    | $      | 1,231                                                             |   | $      | (70,971 | ) | $ | 732,666 |   |
|                                                                            |   |                               |    |                                                    |   |                                                              |   |   |    |   |   |   |   |
|                                                                            |   |                               |    |                                                    |   |                                                              |   |   |    |   |   |   |   |
| Comprehensive                  income:                                          |   |                               |    |                                                    |   |                                                              |   |   |    |   |   |   |   |
| Net                  earnings                                                   |   |                               | 71,610  |                                                    |   | -                                                                 |   |   | -       |   |   | 71,610 |   |
| Net                  unrealized gain related to interest rate swaps, net of tax |   |                               | -       |                                                    |   | 383                                                               |   |   | -       |   |   | 383 |   |
| Comprehensive                  income                                           |   |                               | 71,610  |                                                    |   | 383                                                               |   |   | -       |   |   | 71,993 |   |
|                                                                            |   |                               |    |                                                    |   |                                                              |   |   |    |   |   |   |   |
| Settlement                  against tax sharing receivable - Southern Union     |   |                               | -       |                                                    |   | -                                                                 |   |   | 20,109  |   |   | 20,109 |   |
|                                                                            |   |                               |    |                                                    |   |                                                              |   |   |    |   |   |   |   |
| Balance                  September 30, 2005                                     |   | $                                  | 874,016 |                                                    | $      | 1,614                                                             |   | $      | (50,862 | ) | $ | 824,768 |   |
|                                                                            |   |                               |    |                                                    |   |                                                              |   |   |    |   |   |   |   |

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*Table          of Contents*

PANHANDLE      EASTERN 

**ITEM      1. Financial Statements**

*Panhandle      Eastern Pipe Line*
*Panhandle*
** **
*the      SEC*

**I      Corporate Structure**

*Southern      Union Company*
*Southern      Union*
*LNG*
*the*
*FERC*

| ·   | Panhandle                Eastern Pipe Line; |
|--------------------|---------------------------------------------|

| ·   | Trunkline                Gas Company, LLC (*Trunkline*),                a direct wholly-owned subsidiary of Panhandle Eastern Pipe                Line; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sea                Robin Pipeline Company, LLC (*Sea                Robin*),                an indirect wholly-owned subsidiary of Panhandle Eastern Pipe                Line; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Trunkline                LNG Company, LLC (*Trunkline                LNG*),                a direct wholly-owned subsidiary of Trunkline LNG Holdings, LLC                (*LNG                Holdings*),                which is an indirect wholly-owned subsidiary of Panhandle Eastern                Pipe                Line; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pan                Gas Storage, LLC (d.b.a. *Southwest                Gas Storage*),                a wholly-owned subsidiary of Panhandle Eastern Pipe Line. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

*bcf*

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*Table          of Contents*

**II      Summary of Significant Accounting Policies and Other      Matters**

***Principles      of Consolidation.***

***Asset      Impairment.***
*SFAS*
*Accounting      for the Impairment or Disposal of Long-Lived Assets*

***Revenues.***

***System      Gas and Operating Supplies.***

***Fuel      Tracker.***
** **

***Significant      Customers and Credit Risk.***

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*Table          of Contents*

***Accounting      for Postretirement Benefits.***
*Employers’ Accounting for Postretirement Benefits Other Than      Pensions*
*Employers’ Disclosures about Pensions and      Other Postretirement Benefits*

***Accounting      for Derivatives and Hedging Activities.***
*Accounting      for Derivative Instruments and Hedging Activities, *
*Note      V - Accounting for Derivatives and Hedging Activities*

***Accounting      for Taxes.***

***Commitments      and Contingencies.***
*Note      IX - Commitments and Contingencies*

**New      Accounting Standards**

***FSP      No. FAS 106-2, “Accounting and Disclosure Requirements Related to the Medicare      Prescription Drug, Improvement and Modernization Act of      2003”***
***(the      Medicare Prescription Drug Act)***
***:***
*the      FASB*
*FSP*
*FSP      FAS 106-2*

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*Table          of Contents*

***FASB      Statement No.123R, “Share-Based Payment (revised      2004)”:***
*Accounting for Stock-Based Compensation*
*Accounting for Stock Issued to      Employees*
*Statement of Cash      Flows*

***FSP      No. FIN 46R-5, “Implicit Variable Interests under FASB Interpretation No. 46      (revised December 2003), Consolidation of Variable Interest      Entities”:***
*VIE*

***FIN      No. 47, “Accounting for Conditional Asset Retirement      Obligations”:***
*Accounting      for Asset Retirement Obligations*

***FERC      Accounting Release:***

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*Table          of Contents*

**III      Regulatory Matters**

*Pioneer*
*Burlington*

*Phase      I*
*Note      IX - Commitments and Contingencies*
*Phase      II*

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*Table          of Contents*

**IV      Related Party Transactions**

*the*
*Panhandle      Acquisition*

|                                                               |   | **Three                  Months**  |   | **Three                  Months**  |   |  **Nine                  Months**   |   | **Nine                  Months**   |   |
|--------------------------------------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------------|--------|------------------------------------|--------|
|                                                               |   | **Ended**                          |   | **Ended**                          |   |  **Ended**                          |   | **Ended**                          |   |
|                                                               |   | **September                  30,** |   | **September                  30,** |   |  **September                  30,** |   | **September                  30,** |   |
| **Related                  Party Transactions**                    |   | **2005**                           |   | **2004**                           |   |  **2005**                           |   | **2004**                           |   |
|                                                               |   |                               |   |                               |   |                                |   |                               |   |
|                                                               |   |                               |   |                               |   |                                     |   |                               |   |   |   |   |   |
| Transportation                  and storage of natural gas revenue |   | $                                  | 954    |                               | $      | 974                                      |   | $                                  | 2,809  |   | $ | 2,906 |   |
| Operation                  and maintenance:                        |   |                               |   |                               |   |                                     |   |                               |   |   |   |   |   |
| Management                  & royalty fees                     |   |                               | 2,898  |                               |   | 2,732                                    |   |                               | 9,044  |   |   | 8,973 |   |
| Other                  expenses                                    |   |                               | 2,789  |                               |   | 4,948                                    |   |                               | 11,077 |   |   | 13,586 |   |
| Other                  income, net                                 |   |                               | 1,069  |                               |   | 522                                      |   |                               | 2,503  |   |   | 1,320 |   |

|                                                                           |   |                               |    |                               |   |
|--------------------------------------------------------------------------------|--------|------------------------------------|---------|-----------------------------------------|--------|
|                                                                           |   | **September                  30,** |    |  **December                  31,** |   |
| **Related                  Party Transactions**                                |   | **2005**                           |    |  **2004**                          |   |
|                                                                           |   |                               |    |                               |   |
|                                                                           |   |                               |    |                                    |   |   |   |
| Note                  receivable - Southern Union - current                    |   | $                                  | 115,380 |                                    | $      | 90,745 |   |
| Accounts                  receivable                                           |   |                               | 8,669   |                                    |   | 7,287 |   |
| Accounts                  payable                                              |   |                               | (10,166 | )                                       |   | (3,478 | ) |
| Owners'                  equity - tax sharing note receivable - Southern Union |   |                               | 50,862  |                                    |   | 70,971 |   |

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*Table          of Contents*

*CCE*
*CrossCountry*
*the      Management Agreement*
*Manager*

**V      Accounting for Derivatives and Hedging Activities**

*Accounting      for Derivative Instruments and Hedging Activities, *
*fair      value hedge*
*cash      flow hedge*

*the      Credit Agreement*
*Note      VI - Debt*

*Note      VI - Debt*

**VI      Debt**

|                                                      |   |                          |   | **September                  30,** |   | **December                  31,** |   |
|-----------------------------------------------------------|--------|-------------------------------|--------|------------------------------------|--------|-----------------------------------|--------|
| **Long-term                  Debt**                       |   | **Year                  Due** |   | **2005**                           |   | **2004**                          |   |
|                                                      |   |                          |   |                               |   |                              |   |   |   |   |
| 6.50%                  Senior Notes                       |   |                          | 2009   |                               | $      | 60,623                            |   | $ | 60,623 |   |
| 8.25%                  Senior Notes                       |   |                          | 2010   |                               |   | 40,500                            |   |   | 40,500 |   |
| 7.00%                  Senior Notes                       |   |                          | 2029   |                               |   | 66,305                            |   |   | 66,305 |   |
| 4.80%                  Senior Notes                       |   |                          | 2008   |                               |   | 300,000                           |   |   | 300,000 |   |
| 6.05%                  Senior Notes                       |   |                          | 2013   |                               |   | 250,000                           |   |   | 250,000 |   |
| 2.75%                  Senior Notes                       |   |                          | 2007   |                               |   | 200,000                           |   |   | 200,000 |   |
| Bank                  loans (floating rate)               |   |                          | 2007   |                               |   | 255,626                           |   |   | 258,433 |   |
| Total                  debt outstanding                   |   |                          |   |                               |   | 1,173,054                         |   |   | 1,175,861 |   |
| Current                  portion of long-term debt        |   |                          |   |                               |   | -                                 |   |   | (12,548 | ) |
| Interest                  rate swaps (2.75% Senior Notes) |   |                          |   |                               |   | (6,203                            | )      |   | (3,936 | ) |
| Unamortized                  debt premium, net            |   |                          |   |                               |   | 12,835                            |   |   | 14,688 |   |
| Total                  long-term debt                     |   |                          |   |                               | $      | 1,179,686                         |   | $ | 1,174,065 |   |
|                                                      |   |                          |   |                               |   |                              |   |   |   |   |

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*Table          of Contents*

**VII      Comprehensive Income**

|                                                                                               |   | **Three                  Months**  |   | **Three                  Months**  |   | **Nine                  Months**   |   | **Nine                  Months**   |   |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|
|                                                                                               |   | **Ended**                          |   | **Ended**                          |   | **Ended**                          |   | **Ended**                          |   |
|                                                                                               |   | **September                  30,** |   | **September                  30,** |   | **September                  30,** |   | **September                  30,** |   |
|                                                                                               |   | **2005**                           |   | **2004**                           |   | **2005**                           |   | **2004**                           |   |
|                                                                                               |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |
| Net                  earnings                                                                      |   | $                                  | 21,470 |                               | $      | 16,056                             |   | $                                  | 71,610 |   | $ | 63,257 |   |
|                                                                                               |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |
| Unrealized                  gain (loss) related to interest rate swaps,                            |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |
| net                  of taxes of $0, $57, $1,612, and $2,019, respectively                         |   |                               | (1     | )                                  |   | 88                                 |   |                               | 2,470  |   |   | 3,487 |   |
| Realized                  (gains) losses in net income,                                            |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |
| net                  of taxes of $185, $(886), $1,356, and $(2,574),                  respectively |   |                               | (276   | )                                  |   | (1,320                             | )      |                               | (2,087 | ) |   | (4,314 | ) |
|                                                                                               |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |
| Total                  comprehensive income                                                        |   | $                                  | 21,193 |                               | $      | 14,824                             |   | $                                  | 71,993 |   | $ | 62,430 |   |
|                                                                                               |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |

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*Table          of Contents*

**VIII      Benefits**

**Components      of Net Periodic Benefit Cost**

*OPEB*

|                                                   |   | **Three                  Months**  |   | **Three                  Months**  |   | **Nine                  Months**   |   | **Nine                  Months**   |   |
|--------------------------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------|--------|
|                                                   |   | **Ended**                          |   | **Ended**                          |   | **Ended**                          |   | **Ended**                          |   |
|                                                   |   | **September                  30,** |   | **September                  30,** |   | **September                  30,** |   | **September                  30,** |   |
| **OPEB**                                               |   | **2005**                           |   | **2004**                           |   | **2005**                           |   | **2004**                           |   |
|                                                   |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |
| Service                  cost                          |   | $                                  | 619    |                               | $      | 641                                |   | $                                  | 1,962  |   | $ | 1,761 |   |
| Interest                  cost                         |   |                               | 823    |                               |   | 784                                |   |                               | 2,574  |   |   | 2,153 |   |
| Expected                  return on plan assets        |   |                               | (266   | )                                  |   | (175                               | )      |                               | (730   | ) |   | (327 | ) |
| Amortization                  of prior service cost    |   |                               | (56    | )                                  |   | -                                  |   |                               | (167   | ) |   | - |   |
| Amortization                  of transition obligation |   |                               | -      |                               |   | -                                  |   |                               | -      |   |   | - |   |
| Recognized                  actuarial gain             |   |                               | 17     |                               |   | -                                  |   |                               | 229    |   |   | - |   |
| Settlement                  recognition                |   |                               | -      |                               |   | -                                  |   |                               | -      |   |   | - |   |
|                                                   |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |
| Net                  periodic benefit cost             |   | $                                  | 1,137  |                               | $      | 1,250                              |   | $                                  | 3,868  |   | $ | 3,587 |   |
|                                                   |   |                               |   |                               |   |                               |   |                               |   |   |   |   |   |

***Stock      Based Compensation.***
*Accounting      for Stock Issued to Employees*

----

*Table          of Contents*

*Accounting      for Stock-Based Compensation*
*Accounting      for Stock-Based Compensation—Transition and Disclosure*

|                                                                |   | **Three                    Months**  |   | **Three                    Months**  |   | **Nine                    Months**   |   | **Nine                    Months**   |   |
|---------------------------------------------------------------------|--------|--------------------------------------|--------|--------------------------------------|--------|--------------------------------------|--------|--------------------------------------|--------|
|                                                                |   | **Ended**                            |   | **Ended**                            |   | **Ended**                            |   | **Ended**                            |   |
|                                                                |   | **September                    30,** |   | **September                    30,** |   | **September                    30,** |   | **September                    30,** |   |
|                                                                |   | **2005**                             |   | **2004**                             |   | **2005**                             |   | **2004**                             |   |
|                                                                |   |                                 |   |                                 |   |                                 |   |                                 |   |
| Net                    earnings, as reported                        |   | $                                    | 21,470 |                                 | $      | 16,056                               |   | $                                    | 71,610 |   | $ | 63,257 |   |
| Deduct                    total stock-based employee compensation   |   |                                 |   |                                 |   |                                 |   |                                 |   |   |   |   |   |
| expense                    determined under fair value based method |   |                                 |   |                                 |   |                                 |   |                                 |   |   |   |   |   |
| for                    all awards, net of related taxes             |   |                                 | 58     |                                 |   | 72                                   |   |                                 | 150    |   |   | 187 |   |
| Pro                    forma net earnings                           |   | $                                    | 21,412 |                                 | $      | 15,984                               |   | $                                    | 71,460 |   | $ | 63,070 |   |
|                                                                |   |                                 |   |                                 |   |                                 |   |                                 |   |   |   |   |   |

***Recently      Enacted Legislation.***
*Medicare      Part D*
*FSP*

**IX      Commitments and Contingencies**

***Litigation.***
** **
*Accounting      for Contingencies*

*Hope      Land*

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*Table          of Contents*

***Environmental      Matters.***
** **
*PCBs*

*EPA*

*Illinois      EPA*

----

*Table          of Contents*

***Air      Quality Control.***
*INGAA*
*NOx*

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*Table          of Contents*

*MACT*
*HAPs*

***Other      Commitments and Contingencies.***
*MMS*

*CB&I*

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*Table          of Contents*

***Controlled      Group Pension Liabilities.***

**X        Subsequent Event**

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*Table          of Contents*

**ITEM      2. Management's Discussion and Analysis of Results of      Operations and Financial Condition**

**Overview**

*TBtu*

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*Table          of Contents*

**Results      of Operations**

|                                                                |   |                                     |    |                                     |   |       |   |
|---------------------------------------------------------------------|--------|------------------------------------------|---------|------------------------------------------|--------|------------|--------|
|                                                                |   | **Three                  Months**        |    | **Three                  Months**        |   |       |   |
|                                                                |   | **Ended                  September 30,** |    | **Ended                  September 30,** |   |       |   |
|                                                                |   | **2005**                                 |    | **2004**                                 |   | **Change** |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Operating                  revenue:                                 |   |                                     |    |                                     |   |       |   |   |   |   |
| Reservation                  revenue - transportation & storage |   | $                                        | 83,759  |                                     | $      | 77,081     |   | $ | 6,678 |   |
| LNG                  terminalling revenue                           |   |                                     | 15,046  |                                     |   | 15,004     |   |   | 42 |   |
| Commodity                  revenue - transportation & storage   |   |                                     | 15,040  |                                     |   | 14,719     |   |   | 321 |   |
| Other                  revenue                                      |   |                                     | 2,100   |                                     |   | 2,460      |   |   | (360 | ) |
| Total                  operating revenue                            |   |                                     | 115,945 |                                     |   | 109,264    |   |   | 6,681 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Operating                  expenses:                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Operation,                  maintenance and general                 |   |                                     | 47,378  |                                     |   | 49,125     |   |   | (1,747 | ) |
| Depreciation                  and amortization                      |   |                                     | 15,145  |                                     |   | 15,178     |   |   | (33 | ) |
| Taxes,                  other than on income and revenues           |   |                                     | 7,313   |                                     |   | 7,044      |   |   | 269 |   |
| Total                  operating expenses                           |   |                                     | 69,836  |                                     |   | 71,347     |   |   | (1,511 | ) |
| Operating                  income                                   |   |                                     | 46,109  |                                     |   | 37,917     |   |   | 8,192 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Other                  income (expense):                            |   |                                     |    |                                     |   |       |   |   |   |   |
| Interest                  expense, net                              |   |                                     | (11,950 | )                                        |   | (12,030    | )      |   | 80 |   |
| Other,                  net                                         |   |                                     | 1,142   |                                     |   | 500        |   |   | 642 |   |
| Total                  other expense, net                           |   |                                     | (10,808 | )                                        |   | (11,530    | )      |   | 722 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Earnings                  before income taxes                       |   |                                     | 35,301  |                                     |   | 26,387     |   |   | 8,914 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Income                  taxes                                       |   |                                     | 13,831  |                                     |   | 10,331     |   |   | 3,500 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Net                  earnings                                       |   | $                                        | 21,470  |                                     | $      | 16,056     |   | $ | 5,414 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |

***Operating      Revenue.***

***Operating      Expenses.***

***Other,      Net.***
** **
*Note      IV - Related Party Transactions*
*** ***

***Income      Taxes.***

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*Table          of Contents*

|                                                                |   |                                     |    |                                     |   |       |   |
|---------------------------------------------------------------------|--------|------------------------------------------|---------|------------------------------------------|--------|------------|--------|
|                                                                |   | **Nine                  Months**         |    | **Nine                  Months**         |   |       |   |
|                                                                |   | **Ended                  September 30,** |    | **Ended                  September 30,** |   |       |   |
|                                                                |   | **2005**                                 |    | **2004**                                 |   | **Change** |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Operating                  revenue:                                 |   |                                     |    |                                     |   |       |   |   |   |   |
| Reservation                  revenue - transportation & storage |   | $                                        | 265,543 |                                     | $      | 256,156    |   | $ | 9,387 |   |
| LNG                  terminalling revenue                           |   |                                     | 41,815  |                                     |   | 42,847     |   |   | (1,032 | ) |
| Commodity                  revenue - transportation & storage   |   |                                     | 48,018  |                                     |   | 49,408     |   |   | (1,390 | ) |
| Other                  revenue                                      |   |                                     | 6,390   |                                     |   | 7,273      |   |   | (883 | ) |
| Total                  operating revenue                            |   |                                     | 361,766 |                                     |   | 355,684    |   |   | 6,082 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Operating                  expenses:                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Operation,                  maintenance and general                 |   |                                     | 145,693 |                                     |   | 151,434    |   |   | (5,741 | ) |
| Depreciation                  and amortization                      |   |                                     | 45,537  |                                     |   | 45,201     |   |   | 336 |   |
| Taxes,                  other than on income and revenues           |   |                                     | 21,518  |                                     |   | 21,244     |   |   | 274 |   |
| Total                  operating expenses                           |   |                                     | 212,748 |                                     |   | 217,879    |   |   | (5,131 | ) |
| Operating                  income                                   |   |                                     | 149,018 |                                     |   | 137,805    |   |   | 11,213 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Other                  income (expense):                            |   |                                     |    |                                     |   |       |   |   |   |   |
| Interest                  expense, net                              |   |                                     | (35,297 | )                                        |   | (36,209    | )      |   | 912 |   |
| Other,                  net                                         |   |                                     | 3,888   |                                     |   | 1,840      |   |   | 2,048 |   |
| Total                  other expense, net                           |   |                                     | (31,409 | )                                        |   | (34,369    | )      |   | 2,960 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Earnings                  before income taxes                       |   |                                     | 117,609 |                                     |   | 103,436    |   |   | 14,173 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Income                  taxes                                       |   |                                     | 45,999  |                                     |   | 40,179     |   |   | 5,820 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |
| Net                  earnings                                       |   | $                                        | 71,610  |                                     | $      | 63,257     |   | $ | 8,353 |   |
|                                                                |   |                                     |    |                                     |   |       |   |   |   |   |

***Operating      Revenue.***

***Operating      Expenses.***

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*Table          of Contents*

***Interest      Expense, Net.***
*Note      VI - Debt*

***Other,      Net.***
** **
*Note      IV - Related Party Transactions*

***Income      Taxes.***

**Liquidity      and Capital Resources**

***Operating      Activities.***

***Investing      Activities.***

***Financing      Activities.***
*** ***

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*Table          of Contents*

**Outlook**

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*Table          of Contents*

**Other      Matters**

***Customer      Concentration.***
** **

|                                            |   |        |   | **Percent                  of Operating Revenue for**  |   |
|-------------------------------------------------|--------|--------|--------|-------------------------------------------------------------|--------|
|                                            |   |   |   | **Nine                  Months Ended**                      |   |
|                                            |   |   |   | **September                  30,**                          |   |
| **Customer**                                    |   |   |   | **2005**                                                    |   | **2004** |   |
|                                            |   |   |   |                                                        |   |   |   |   |   |
| ProLiance                                       |   |   |   |                                                        | 16     |   |   | 17 |   |
| BG                  LNG Services                |   |   |   |                                                        | 15     |   |   | 16 |   |
| Ameren                                          |   |   |   |                                                        | 11     |   |   | 9 |   |
| CMS                  Energy subsidiaries (1)    |   |   |   |                                                        | 9      |   |   | 10 |   |
| Other                  Top 10 customers         |   |   |   |                                                        | 15     |   |   | 18 |   |
| Remaining                  customers            |   |   |   |                                                        | 34     |   |   | 30 |   |
| Total                  percentage               |   |   |   |                                                        | 100    | % |   | 100 | % |
|                                            |   |   |   |                                                        |   |   |   |   |   |
| (1)                  Primarily Consumers Energy |   |   |   |                                                        |   |   |   |   |   |
|                                            |   |   |   |                                                        |   |   |   |   |   |

***Regulation.***
** **

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*Table          of Contents*

*MMS*

*NOI*
*Policy      for Selective Discounting By Natural Gas Pipelines*

***Environmental      Matters.***

----

*Table          of Contents*

*PCB      Assessment and Clean-up Programs --*
*** ***
*Note      IX - Commitments and Contingencies - Environmental Matters*

*Air      Quality Control --*
** **

*Note      IX - Commitments and Contingencies - Environmental Matters*

***Off-Balance      Sheet Arrangements and Aggregate Contractual      Obligations.***
*CB&I*
*Note      IX - Commitments and Contingencies*

----

*Table          of Contents*

***Contractual      Commitments.***

|                                         |   | **Remainder** |   |     |   |     |   |     |    |     |   | **In                Total** |   |
|----------------------------------------------|--------|---------------|--------|----------|--------|----------|--------|----------|---------|----------|--------|-----------------------------|--------|
|                                         |   | **2005**      |   | **2006** |   | **2007** |   | **2008** |    | **2009** |   | **Thereafter**              |   |
|                                         |   |          |   |     |   |     |   |     |    |     |   |                        |   |   |   |   |   |   |   |
| Operating                Leases (1)          |   | $             | 3,526  |     | $      | 13,856   |   | $        | 11,827  |     | $      | 7,919                       |   | $ | 6,595 |   | $ | 22,905 |   |
|                                         |   |          |   |     |   |     |   |     |    |     |   |                        |   |   |   |   |   |   |   |
| Total                long term debt (2)      |   |          | -      |     |   | -        |   |     | 455,626 |     |   | 300,000                     |   |   | 60,623 |   |   | 356,805 |   |
|                                         |   |          |   |     |   |     |   |     |    |     |   |                        |   |   |   |   |   |   |   |
| Interest                payments on debt (3) |   |          | 14,590 |     |   | 58,362   |   |     | 44,972  |     |   | 36,048                      |   |   | 25,242 |   |   | 146,363 |   |
|                                         |   |          |   |     |   |     |   |     |    |     |   |                        |   |   |   |   |   |   |   |
| Firm                capacity payments (4)    |   |          | 2,859  |     |   | 10,633   |   |     | 8,841   |     |   | 7,396                       |   |   | 7,127 |   |   | 31,084 |   |
|                                         |   |          |   |     |   |     |   |     |    |     |   |                        |   |   |   |   |   |   |   |
| OPEB                funding (5)              |   |          | 1,953  |     |   | 7,812    |   |     | 7,812   |     |   | 7,812                       |   |   | 7,812 |   |   | - |   |
|                                         |   |          |   |     |   |     |   |     |    |     |   |                        |   |   |   |   |   |   |   |
| Total                                        |   | $             | 22,928 |     | $      | 90,663   |   | $        | 529,078 |     | $      | 359,175                     |   | $ | 107,399 |   | $ | 557,157 |   |
|                                         |   |          |   |     |   |     |   |     |    |     |   |                        |   |   |   |   |   |   |   |

***Capital      Expenditures.***

***Postretirement      Benefits***

***Controlled      Group Pension Liabilities.***
** **

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*Table          of Contents*

***CCE      Holdings Acquisition of CrossCountry Energy.***
*CCE*
*the      Management Agreement*
*Manager*
*Note      IV - Related Party Transactions*

**ITEM      3. Quantitative and Qualitative Disclosures About Market      Risk**

**ITEM      4. Controls and Procedures**

***Evaluation      of Disclosure Controls and Procedures***

*CEO*
*CFO*

***Changes      in Internal Controls***

**Cautionary      Statement Regarding Forward-Looking Information.**

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*Table          of Contents*

**PART      II. OTHER INFORMATION**

**ITEM      1. Legal Proceedings**

*ITEM      1. Financial Statements, Note IX -- Commitments and Contingencies - Litigation,      Environmental Matters, Air Quality Control, Other Contingencies and Controlled      Group Pension Liabilities*
*ITEM      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations*
*Part      I. Financial Information*

**ITEM      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

**ITEM      3. Defaults Upon Senior      Securities**

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*Table          of Contents*

**ITEM      4. Submission of Matters to a Vote of Security      Holders**

**ITEM      5. Other Information**

**ITEM      6. Exhibits**

** **
**Exhibit      No.**
**                                  **
**Description**

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1   | Credit                Agreement dated as of April 26, 2005 by and among Trunkline LNG Holdings                LLC as the Borrower, Panhandle Eastern Pipe Line Company, LP as a                Guarantor, Trunkline LNG Company, LLC as a Guarantor, and the Banks                named                therein and Bayerische Hypo- Und Vereinsbank AG, New York Branch                as the                Agent, the Sole Book Runner and the Sole Lead Arranger (Filed as                Exhibit                10.1 to Panhandle’s Current Report on Form 8-K filed on May 2, 2005, and                incorporated herein by reference). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 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 Chief Financial 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.                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 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 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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*Table          of Contents*

**SIGNATURES**

|                                  |                                                                      |
|---------------------------------------|---------------------------------------------------------------------------|
|                                  | PANHANDLE                EASTERN PIPE LINE COMPANY, LP                    |
|                                  |                                                                      |
|                                  |                                                                      |
| Date:                November 9, 2005 | By:                /s/                 ROBERT                O. BOND |
|                                  | Robert                O. Bond                                             |
|                                  | President                and Chief Operating Officer                 |
|                                  |                                                                      |
|                                  |                                                                      |
|                                  |                                                                      |

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