##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


(Mark One)


x


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2004


OR


o


TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period
from           to           .


Commission file number 1-7320


ANR Pipeline Company




|                                                                                                      |  |                                                   
|----------------------------------------------------------------------------------------------------- |  | --------------------------------------------------
|Delaware(State or other jurisdiction of
    incorporation or organization)                            |  | 38-1281775(I.R.S. Employer
    Identification No.)
|El Paso Building
    1001 Louisiana Street
    Houston, Texas(Address of principal executive offices) |  | 77002(Zip Code)                                   

Telephone Number: (713) 420-2600


Securities registered pursuant to Section 12(b) of the
Act:


|                                                                                        |  |  |  |                        
|--------------------------------------------------------------------------------------- |  |  |  | -----------------------
|                                                                                        |  |  |  | Name of each exchange  
|Title of each class                                                                     |  |  |  | on which registered    
|                                                                                        |  |  |  |                        
|9.625% Debentures, due 2021
    7.375% Debentures, due 2024 7% Debentures,
    due 2025 |  |  |  | New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:
None


þ o


þ


o þ


State the aggregate market
value of the voting stock held by non-affiliates of the
registrant: None


Indicate the number of shares
outstanding of each of the registrants classes of common
stock, as of the latest practicable date.




ANR PIPELINE COMPANY MEETS THE
CONDITIONS OF GENERAL INSTRUCTION I(1)(a) AND (b) TO
FORM 10-K AND IS THEREFORE FILING THIS REPORT WITH A
REDUCED DISCLOSURE FORMAT AS PERMITTED BY SUCH INSTRUCTION.


Documents Incorporated by Reference: None










---










ANR PIPELINE COMPANY


TABLE OF CONTENTS


|                                             |  |                                                                                                                                                    |  |  |    | 
|-------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | -- | 
|Caption                                      | 
|                                             | 
|                                             |  | Page                                                                                                                                               | 
|                                             |  |                                                                                                                                                    | 
|                                            
|PART I                                      
|                                            
|Item 1.                                      |  | Business                                                                                                                                           |  |  | 1  | 
|Item 2.                                      |  | Properties                                                                                                                                         |  |  | 4  | 
|Item 3.                                      |  | Legal Proceedings                                                                                                                                  |  |  | 4  | 
|Item 4.                                      |  | Submission of Matters to a Vote of Security
    Holders                                                                                            |  |  | *  | 
|PART II                                     
|                                            
|Item 5.                                      |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities                               |  |  | 4  | 
|Item 6.                                      |  | Selected Financial Data                                                                                                                            |  |  | *  | 
|Item 7.                                      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                                          |  |  | 5  | 
|                                             |  | Risk Factors and Cautionary Statement for
    Purposes of the Safe Harbor Provisions of the
    Private Securities Litigation Reform Act of 1995 |  |  | 10 | 
|Item 7A.                                     |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                                     |  |  | 15 | 
|Item 8.                                      |  | Financial Statements and Supplementary
    Data                                                                                                    |  |  | 16 | 
|Item 9.                                      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                                                           |  |  | 36 | 
|Item 9A.                                     |  | Controls and Procedures                                                                                                                            |  |  | 36 | 
|Item 9B.                                     |  | Other Information                                                                                                                                  |  |  | 37 | 
|PART III                                    
|                                            
|Item 10.                                     |  | Directors and Executive Officers of the
    Registrant                                                                                             |  |  | *  | 
|Item 11.                                     |  | Executive Compensation                                                                                                                             |  |  | *  | 
|Item 12.                                     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                                                 |  |  | *  | 
|Item 13.                                     |  | Certain Relationships and Related
    Transactions                                                                                                 |  |  | *  | 
|Item 14.                                     |  | Principal Accountant Fees and Services                                                                                                             |  |  | 37 | 
|PART IV                                     
|                                            
|Item 15.                                     |  | Exhibits and Financial Statement
    Schedules                                                                                                     |  |  | 37 | 
|                                             |  | Signatures                                                                                                                                         |  |  | 49 | 
|Indenture                                   
|Certification of CEO pursuant to Section 302
|Certification of CFO pursuant to Section 302
|Certification of CEO pursuant to Section 906
|Certification of CFO pursuant to Section 906








|  |                                                                                                                                                                                               
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | We have not included a response to this item in this document
    since no response is required pursuant to the reduced disclosure
    format permitted by General Instruction I to Form 10-K.



|     |  |                                
|---- |  | -------------------------------
|/d   |  | = per day                      
|BBtu |  | = billion British thermal units
|Bcf  |  | = billion cubic feet           
|MDth |  | = thousand dekatherms          
|MMcf |  | = million cubic feet           





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##### Table of Contents






PART I





ITEM 1. BUSINESS


General




The Pipeline Systems.




|                             |  |          |     |  |             |                                                                                                                                                                                                                                                                                       |                 |  |               | 
|---------------------------- |  | -------- | --- |  | ----------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------- |  | ------------- | 
|                             |  |          |     |  |             | Anticipated                                                                                                                                                                                                                                                                           |                
|Project                      |  | Capacity |     |  | Description |                                                                                                                                                                                                                                                                                       | Completion Date | 
|                             |  |          |     |  |             |                                                                                                                                                                                                                                                                                       |                 | 
|                             |  | (MMcf/d) |     |  |             |                                                                                                                                                                                                                                                                                       |                
|EastLeg Wisconsin expansion  |  |          | 142 |  |             | To replace 4.7 miles of an existing 14-inch natural gas
    pipeline with a 30-inch line in Washington County, add
    3.5 miles of 8-inch
    looping(1)on the Denmark Lateral in Brown County, and modify our
    existing Mountain Compressor Station in Oconto County, Wisconsin. |                 |  | November 2005 | 
|NorthLeg Wisconsin expansion |  |          | 110 |  |             | To add 6,000 horsepower of electric powered compression at
    our Weyauwega Compressor Station in Waupaca County, Wisconsin                                                                                                                                                          |                 |  | November 2005 | 






|    |                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Looping is the installation of a pipeline, parallel to an
    existing pipeline, with tie-ins at several points along the
    existing pipeline.



Storage Facilities.




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Regulatory Environment






| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | rates and charges for natural gas transportation, storage and
    related services;
|
| |  | certification and construction of new facilities;                                  
|
| |  | extension or abandonment of services and facilities;                               
|
| |  | maintenance of accounts and records;                                               
|
| |  | relationships between pipeline and energy affiliates;                              
|
| |  | terms and conditions of services;                                                  
|
| |  | depreciation and amortization policies;                                            
|
| |  | acquisition and disposition of facilities; and                                     
|
| |  | initiation and discontinuation of services.                                        









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Markets and Competition












|                                                                                                      |  |                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|----------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Customer Information                                                                                  |  | Contract Information                                                                                                                                    |  | Competition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                     
|                                                                                                     
|Approximately 259 firm and interruptible customers
    Major Customer:  We
    Energies  (909 BBtu/d) |  | Approximately 570 firm contracts
    Weighted average remaining contract term of approximately three
    years.
    Contract terms expire in 2005-2010. |  | In the Midwest, we compete with other interstate and intrastate
    pipeline companies and local distribution companies in the
    transportation and storage of natural gas. In the Northeast, we
    compete with other interstate pipelines serving electric
    generation and local distribution companies. Natural gas
    delivered on our system competes with alternative energy sources
    used to generate electricity, such as coal and fuel oil. In
    addition, we compete directly with other interstate pipelines,
    including Guardian Pipeline, for markets in Wisconsin. We
    Energies owns an interest in Guardian, which is currently
    serving a portion of We Energies firm transportation
    requirements.
    We also compete directly with numerous pipelines and gathering
    systems for access to new supply sources. Our principal supply
    sources are the Rockies and mid-continent production accessed in
    Kansas and Oklahoma, western Canadian production delivered to
    the Chicago area and Gulf of Mexico sources, including deep
    water production and liquefied natural gas (LNG) imports.

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Environmental




Employees







ITEM 2. PROPERTIES









ITEM 3. LEGAL PROCEEDINGS







ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS







PART II







|        |                                                                                                                 
|------- | ----------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES








ITEM 6. SELECTED FINANCIAL DATA




4



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS



Overview












|                |  |        |       |                  |                     |  |    | 
|--------------- |  | ------ | ----- | ---------------- | ------------------- |  | -- | 
|                |  |        |       | Percent of Total |                    
|                |  | MDth/d |       |                  | Contracted Capacity | 
|                |  |        |       |                  |                     | 
|2005            |  |        | 1,354 |                  |                     |  | 18 | 
|2006            |  |        | 1,994 |                  |                     |  | 26 | 
|2007            |  |        | 566   |                  |                     |  | 7  | 
|2008 and beyond |  |        | 3,697 |                  |                     |  | 49 | 

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Results of Operations






|                                       |                  |                      |       |     |      |   |       |     | 
|-------------------------------------- | ---------------- | -------------------- | ----- | --- | ---- | - | ----- | --- | 
|                                       |                  | 2004                 |       |     | 2003 |  
|                                       |                  |                      |       |     |      |  
|                                       |                  | (In millions, except |      
|                                       |                  | volume amounts)      |      
|Operating revenues                     |                  | $                    | 470   |     |      | $ | 554   |    
|Operating expenses                     |                  |                      | (296  | )   |      |   | (346  | )  
|                                       |                  |                      |       |     |      |  
|                                       | Operating income |                      |       | 174 |      |   |       | 208 | 
|                                       |                  |                      |       |     |      |  
|Earnings from unconsolidated affiliate |                  |                      | 65    |     |      |   | 57    |    
|Other income, net                      |                  |                      | 4     |     |      |   | 1     |    
|                                       |                  |                      |       |     |      |  
|                                       | Other            |                      |       | 69  |      |   |       | 58  | 
|                                       |                  |                      |       |     |      |  
|                                       | EBIT             |                      |       | 243 |      |   |       | 266 | 
|Interest and debt expense              |                  |                      | (69   | )   |      |   | (66   | )  
|Affiliated interest income, net        |                  |                      | 12    |     |      |   | 4     |    
|Income taxes                           |                  |                      | (69   | )   |      |   | (74   | )  
|                                       |                  |                      |       |     |      |  
|                                       | Net income       |                      | $     | 117 |      |   | $     | 130 | 
|                                       |                  |                      |       |     |      |  
|Throughput volumes
    (BBtu/d)(1)     |                  |                      | 5,167 |     |      |   | 5,415 |    
|                                       |                  |                      |       |     |      |  






|    |                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Throughput volumes include billable transportation throughput
    volumes for storage withdrawal and volumes associated with our
    proportionate share of our 50 percent equity investment in
    Great Lakes L.P.

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|                                                                            |                      |                         |     |     |         |   |    |       |  |   |        |    |  |   |     |     |  
|--------------------------------------------------------------------------- | -------------------- | ----------------------- | --- | --- | ------- | - | -- | ----- |  | - | ------ | -- |  | - | --- | --- | -
|                                                                            |                      |                         |     |     |         |   |    | EBIT  | 
|                                                                            |                      | Revenue                 |     |     | Expense |   |    | Other |  |   | Impact |   
|                                                                            |                      |                         |     |     |         |   |    |       |  |   |        |   
|                                                                            |                      | Favorable (Unfavorable) |    
|                                                                            |                      | (In millions)           |    
|Dakota gasification facility                                                |                      | $                       | (32 | )   |         | $ | 31 |       |  | $ |       |    |  | $ | (1  | )  
|Impact of contract changes with We Energies                                 |                      |                         | (19 | )   |         |   |   |       |  |   |       |    |  |   | (19 | )  
|Impact of contract remarketing/restructuring                                |                      |                         | (17 | )   |         |   |   |       |  |   |       |    |  |   | (17 | )  
|Gas not used in operations and other gas sales                              |                      |                         | (10 | )   |         |   | (2 | )     |  |   |       |    |  |   | (12 | )  
|Impact of FERC approved contract buyout of Dakota gasification
    facility |                      |                         |    |     |         |   | 6  |       |  |   |       |    |  |   | 6   |    
|Environmental costs                                                         |                      |                         |    |     |         |   | 6  |       |  |   |       |    |  |   | 6   |    
|Historical system balancing adjustment in 2003                              |                      |                         |    |     |         |   | 5  |       |  |   |       |    |  |   | 5   |    
|Earnings from our equity investment in Great Lakes L.P.                     |                      |                         |    |     |         |   |   |       |  |   | 8      |    |  |   | 8   |    
|Recognition of deferred gain on sale of Deepwater assets                    |                      |                         |    |     |         |   |   |       |  |   | 4      |    |  |   | 4   |    
|Other                                                                       |                      |                         | (6  | )   |         |   | 4  |       |  |   | (1     | )  |  |   | (3  | )  
|                                                                            |                      |                         |     |     |         |   |    |       |  |   |        |   
|                                                                            | Total impact on EBIT |                         | $   | (84 | )       |   | $  | 50    |  |   | $      | 11 |  |   | $   | (23 | )
|                                                                            |                      |                         |     |     |         |   |    |       |  |   |        |   



Contract terminations/modifications.




Gas Not Used in Operations and Other Gas Sales.


Expansions.


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Regulatory Matters.






Interest and Debt Expense




Affiliated Interest Income, Net




Income Taxes


|                   |  |                   |    |   |      |   |    |  
|------------------ |  | ----------------- | -- | - | ---- | - | -- | -
|                   |  | Year Ended        |   
|                   |  | December 31,      |   
|                   |  |                   |   
|                   |  | 2004              |    |   | 2003 |  
|                   |  |                   |    |   |      |  
|                   |  | (In millions,     |   
|                   |  | except for rates) |   
|Income taxes       |  | $                 | 69 |   |      | $ | 74 |  
|Effective tax rate |  |                   | 37 | % |      |   | 36 | %



Liquidity




8



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Capital Expenditures




|            |       |               |    |     |      |   |    |     | 
|----------- | ----- | ------------- | -- | --- | ---- | - | -- | --- | 
|            |       | 2004          |    |     | 2003 |  
|            |       |               |    |     |      |  
|            |       | (In millions) |   
|Maintenance |       | $             | 86 |     |      | $ | 76 |    
|Expansion   |       |               | 57 |     |      |   | 25 |    
|            |       |               |    |     |      |  
|            | Total |               | $  | 143 |      |   | $  | 101 | 
|            |       |               |    |     |      |  



Commitments and Contingencies




New Accounting Pronouncements Issued But Not Yet Adopted




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RISK FACTORS AND CAUTIONARY STATEMENT FOR PURPOSES OF THE
SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995






Risks Related to Our Business


Our success depends on factors beyond our control.






| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | service area competition;                                                                                                 
|
| |  | expiration and/or turn back of significant contracts;                                                                     
|
| |  | changes in regulation and actions of regulatory bodies;                                                                   
|
| |  | future weather conditions;                                                                                                
|
| |  | price competition;                                                                                                        
|
| |  | drilling activity and supply availability of natural gas;                                                                 
|
| |  | decreased availability of conventional gas supply sources and
    the availability and timing of other gas supply sources;
|
| |  | increased availability or popularity of alternative energy
    sources;                                                   
|
| |  | increased cost of capital;                                                                                                
|
| |  | opposition to energy infrastructure development, especially in
    environmentally sensitive areas;                       
|
| |  | adverse general economic conditions; and                                                                                  
|
| |  | unfavorable movements in natural gas and liquids prices.                                                                  

10



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The revenues of our pipeline businesses are generated
under contracts that must be renegotiated periodically.








| |   |                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | competition by other pipelines, including the proposed
    construction by other companies of additional pipeline capacity
    in markets served by us;                             
|
| |  | changes in state regulation of local distribution companies,
    which may cause them to negotiate short-term contracts or turn
    back their capacity when their contracts expire;
|
| |  | reduced demand and market conditions in the areas we serve;                                                                                                                         
|
| |  | the availability of alternative energy sources or gas supply
    points; and                                                                                                        
|
| |  | regulatory actions.                                                                                                                                                                 



We face competition that could adversely affect our
operating results.




Fluctuations in energy commodity prices could adversely
affect our business.




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| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | regional, domestic and international supply and demand;                               
|
| |  | availability and adequacy of transportation facilities;                               
|
| |  | energy legislation;                                                                   
|
| |  | federal and state taxes, if any, on the transportation and
    storage of natural gas;
|
| |  | abundance of supplies of alternative energy sources; and                              
|
| |  | political unrest among oil-producing countries.                                       

The agencies that regulate us and our customers affect our
profitability.






Costs of environmental liabilities, regulations and
litigation could exceed our estimates.








| |   |                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the uncertainties in estimating clean up costs;                                                                                                              
|
| |  | the discovery of new sites or information;                                                                                                                   
|
| |  | the uncertainty in quantifying our liability under environmental
    laws that impose joint and several liability on all potentially
    responsible parties;
|
| |  | the nature of environmental laws and regulations; and                                                                                                        
|
| |  | potential changes in environmental laws and regulations,
    including changes in the interpretation or enforcement thereof.                                 



Our operations are subject to operational hazards and
uninsured risks.




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Risks Related to Our Affiliation with El Paso




Our relationship with El Paso and its financial condition
subjects us to potential risks that are beyond our
control.










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We may be subject to a change of control in certain
circumstances.




A default under El Pasos $3 billion credit
agreement by any party could accelerate our future borrowings,
if any, under the credit agreement and our long-term debt, which
could adversely affect our liquidity position.






We could be substantively consolidated with El Paso
if El Paso were forced to seek protection from its
creditors in bankruptcy.




14



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We are an indirect subsidiary of El Paso.






| |   |                                                                
| | - | ---------------------------------------------------------------
| |  | our payment of dividends;                                      
|
| |  | decisions on our financings and our capital raising activities;
|
| |  | mergers or other business combinations;                        
|
| |  | our acquisitions or dispositions of assets; and                
|
| |  | our participation in El Pasos cash management program.        






ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK




|             |                                                            |                                     |   |      |                   |   |          |       |     |      |       |     |  |         |   |     |       |  |   |     |  |  |   |     |  | 
|------------ | ---------------------------------------------------------- | ----------------------------------- | - | ---- | ----------------- | - | -------- | ----- | --- | ---- | ----- | --- |  | ------- | - | --- | ----- |  | - | --- |  |  | - | --- |  | 
|             |                                                            | December 31, 2004                   |   |      | December 31, 2003 |  
|             |                                                            |                                     |   |      |                   |  
|             |                                                            | Expected Fiscal Year of Maturity of |   |      |                  
|             |                                                            | Carrying Amounts                    |   |      |                  
|             |                                                            |                                     |   |      |                  
|             |                                                            |                                     |   | Fair |                   |   | Carrying |       |     | Fair |      
|             |                                                            | 2005                                |   |      | Thereafter        |   |          | Total |     |      | Value |     |  | Amounts |   |     | Value | 
|             |                                                            |                                     |   |      |                   |   |          |       |     |      |       |     |  |         |   |     |       | 
|             |                                                            | (In millions)                       |  
|Liabilities: |                                                            |                                     |   |      |                   |   |          |       |     |      |       |     |  |         |   |     |       |  |   |     |  |  |   |    
|             | Long-term debt, including
    current portion  fixed rate |                                     | $ | 75   | (1)               |   | $        | 733   |     |      | $     | 808 |  |         | $ | 942 |       |  | $ | 807 |  |  | $ | 902 | 
|             |                                                            | Average interest rate               |   |      | 7.0               | % |          |       | 9.2 | %    |       |     |  |         |   |     |       |  |   |     |  |  |   |     |  | 






|    |                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The holders of the $75 million, 7.00% debentures due 2025,
    have the option to require us to redeem their debentures at par
    value in 2005. Therefore, we reclassified this amount to current
    maturities of long-term debt in 2004 to reflect this option.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


ANR PIPELINE COMPANY


CONSOLIDATED STATEMENTS OF INCOME


(In millions)


|                                        |                                          |                         |     |     |      |   |     |      |  |   |     |     | 
|--------------------------------------- | ---------------------------------------- | ----------------------- | --- | --- | ---- | - | --- | ---- |  | - | --- | --- | 
|                                        |                                          | Year Ended December 31, |    
|                                        |                                          |                         |    
|                                        |                                          | 2004                    |     |     | 2003 |   |     | 2002 | 
|                                        |                                          |                         |     |     |      |   |     |      | 
|Operating revenues                      |                                          | $                       | 470 |     |      | $ | 554 |      |  | $ | 544 |    
|                                        |                                          |                         |     |     |      |   |     |      | 
|Operating expenses                      |                                          |                         |     |     |      |   |     |      |  |   |     |    
|                                        | Operation and maintenance                |                         |     | 236 |      |   |     | 283  |  |   |     | 259 | 
|                                        | Depreciation, depletion and amortization |                         |     | 37  |      |   |     | 37   |  |   |     | 36  | 
|                                        | Taxes, other than income taxes           |                         |     | 23  |      |   |     | 26   |  |   |     | 28  | 
|                                        |                                          |                         |     |     |      |   |     |      | 
|                                        |                                          |                         | 296 |     |      |   | 346 |      |  |   | 323 |    
|                                        |                                          |                         |     |     |      |   |     |      | 
|Operating income                        |                                          |                         | 174 |     |      |   | 208 |      |  |   | 221 |    
|Earnings from unconsolidated affiliates |                                          |                         | 65  |     |      |   | 57  |      |  |   | 63  |    
|Other income, net                       |                                          |                         | 4   |     |      |   | 1   |      |  |   | 6   |    
|Interest and debt expense               |                                          |                         | (69 | )   |      |   | (66 | )    |  |   | (41 | )  
|Affiliated interest income, net         |                                          |                         | 12  |     |      |   | 4   |      |  |   | 6   |    
|                                        |                                          |                         |     |     |      |   |     |      | 
|Income before income taxes              |                                          |                         | 186 |     |      |   | 204 |      |  |   | 255 |    
|Income taxes                            |                                          |                         | 69  |     |      |   | 74  |      |  |   | 92  |    
|                                        |                                          |                         |     |     |      |   |     |      | 
|Net income                              |                                          | $                       | 117 |     |      | $ | 130 |      |  | $ | 163 |    
|                                        |                                          |                         |     |     |      |   |     |      | 



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##### Table of Contents



ANR PIPELINE COMPANY


CONSOLIDATED BALANCE SHEETS


(In millions, except share amounts)


|                                        |                                                                                           |                                                   |                                            |       |      |       |       |       |    |       | 
|--------------------------------------- | ----------------------------------------------------------------------------------------- | ------------------------------------------------- | ------------------------------------------ | ----- | ---- | ----- | ----- | ----- | -- | ----- | 
|                                        |                                                                                           | December 31,                                      |                                           
|                                        |                                                                                           |                                                   |                                           
|                                        |                                                                                           | 2004                                              |                                            |       | 2003 |      
|                                        |                                                                                           |                                                   |                                            |       |      |      
|ASSETS                                 
|Current assets                          |                                                                                           |                                                   |                                            |       |      |       |       |      
|                                        | Cash and cash equivalents                                                                 |                                                   | $                                          |      |      |       | $     | 25    |   
|                                        | Accounts and notes receivable                                                             |                                                   |                                            |       |      |       |       |       |   
|                                        |                                                                                           | Customer, net of allowance of $3 in 2004 and 2003 |                                            |       | 63   |       |       |       | 67 |      
|                                        |                                                                                           | Affiliates                                        |                                            |       | 3    |       |       |       | 5  |      
|                                        |                                                                                           | Other                                             |                                            |       | 2    |       |       |       | 3  |      
|                                        | Materials and supplies                                                                    |                                                   |                                            | 21    |      |       |       | 22    |   
|                                        | Other                                                                                     |                                                   |                                            | 24    |      |       |       | 13    |   
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | Total current assets                       |       |      | 113   |       |       |    | 135   | 
|                                        |                                                                                           |                                                   |                                            |       |      |      
|Property, plant and equipment, at cost  |                                                                                           |                                                   | 3,715                                      |       |      |       | 3,660 |      
|                                        | Less accumulated depreciation, depletion and amortization                                 |                                                   |                                            | 2,149 |      |       |       | 2,200 |   
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | Total property, plant and equipment, net   |       |      | 1,566 |       |       |    | 1,460 | 
|                                        |                                                                                           |                                                   |                                            |       |      |      
|Other assets                            |                                                                                           |                                                   |                                            |       |      |       |       |      
|                                        | Investments in unconsolidated affiliates                                                  |                                                   |                                            | 316   |      |       |       | 325   |   
|                                        | Notes receivable from affiliates                                                          |                                                   |                                            | 467   |      |       |       | 367   |   
|                                        | Other                                                                                     |                                                   |                                            | 10    |      |       |       | 20    |   
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | 793                                        |       |      |       | 712   |      
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | Total assets                               |       | $    | 2,472 |       |       | $  | 2,307 | 
|                                        |                                                                                           |                                                   |                                            |       |      |      
|LIABILITIES AND STOCKHOLDERS EQUITY   
|Current liabilities                     |                                                                                           |                                                   |                                            |       |      |       |       |      
|                                        | Accounts payable                                                                          |                                                   |                                            |       |      |       |       |       |   
|                                        |                                                                                           | Trade                                             |                                            | $     | 38   |       |       | $     | 32 |      
|                                        |                                                                                           | Affiliates                                        |                                            |       | 25   |       |       |       | 18 |      
|                                        |                                                                                           | Other                                             |                                            |       | 22   |       |       |       | 13 |      
|                                        | Current maturities of long-term debt                                                      |                                                   |                                            | 75    |      |       |       |      |   
|                                        | Accrued interest                                                                          |                                                   |                                            | 17    |      |       |       | 17    |   
|                                        | Taxes payable                                                                             |                                                   |                                            | 52    |      |       |       | 59    |   
|                                        | Contractual deposits                                                                      |                                                   |                                            | 18    |      |       |       | 13    |   
|                                        | Other                                                                                     |                                                   |                                            | 25    |      |       |       | 29    |   
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | Total current liabilities                  |       |      | 272   |       |       |    | 181   | 
|                                        |                                                                                           |                                                   |                                            |       |      |      
|Long-term debt, less current maturities |                                                                                           |                                                   | 733                                        |       |      |       | 807   |      
|                                        |                                                                                           |                                                   |                                            |       |      |      
|Other liabilities                       |                                                                                           |                                                   |                                            |       |      |       |       |      
|                                        | Deferred income taxes                                                                     |                                                   |                                            | 353   |      |       |       | 307   |   
|                                        | Payable to affiliates                                                                     |                                                   |                                            | 180   |      |       |       | 188   |   
|                                        | Other                                                                                     |                                                   |                                            | 34    |      |       |       | 41    |   
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | 567                                        |       |      |       | 536   |      
|                                        |                                                                                           |                                                   |                                            |       |      |      
|Commitments and contingencies           |                                                                                           |                                                   |                                            |       |      |       |       |      
|Stockholders equity                    |                                                                                           |                                                   |                                            |       |      |       |       |      
|                                        | Common stock, par value $1 per share; 1,000 shares authorized,
    issued and outstanding |                                                   |                                            |      |      |       |       |      |   
|                                        | Additional paid-in capital                                                                |                                                   |                                            | 597   |      |       |       | 597   |   
|                                        | Retained earnings                                                                         |                                                   |                                            | 303   |      |       |       | 186   |   
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | Total stockholders equity                 |       |      | 900   |       |       |    | 783   | 
|                                        |                                                                                           |                                                   |                                            |       |      |      
|                                        |                                                                                           |                                                   | Total liabilities and stockholders equity |       | $    | 2,472 |       |       | $  | 2,307 | 
|                                        |                                                                                           |                                                   |                                            |       |      |      



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ANR PIPELINE COMPANY


CONSOLIDATED STATEMENTS OF CASH FLOWS


(In millions)


|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |     |      |   |      |     |      |  
|--------------------------------------- | ----------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ----------------------------------------- | ---- | ---- | ---- | -- | ---- | --- | ---- | - | ---- | --- | ---- | -
|                                        |                                                                               | Year Ended December 31,                                                      |                                          
|                                        |                                                                               |                                                                              |                                          
|                                        |                                                                               | 2004                                                                         |                                           |      | 2003 |      |    | 2002 |    
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|Cash flows from operating activities    |                                                                               |                                                                              |                                           |      |      |      |    |      |     |      |   |     
|                                        | Net income                                                                    |                                                                              | $                                         | 117  |      |      | $  | 130  |     |      | $ | 163  |    
|                                        | Adjustments to reconcile net income to net cash from operating
    activities |                                                                              |                                           |      |      |      |    |      |     |      |   |      |    
|                                        |                                                                               | Depreciation, depletion and amortization                                     |                                           |      | 37   |      |    |      | 37  |      |   |      | 36  |     
|                                        |                                                                               | Deferred income taxes                                                        |                                           |      | 33   |      |    |      | 38  |      |   |      | 64  |     
|                                        |                                                                               | Earnings from unconsolidated affiliates, adjusted for cash
    distributions |                                           |      | 9    |      |    |      | (14 | )    |   |      | (15 | )   
|                                        |                                                                               | Other non-cash income items                                                  |                                           |      | 2    |      |    |      | 2   |      |   |      |    |     
|                                        |                                                                               | Asset and liability changes                                                  |                                           |      |      |      |    |      |     |      |   |      |     |     
|                                        |                                                                               |                                                                              | Accounts and notes receivable             |      |      | 7    |    |      |     | (18  | ) |      |     | 9    |  
|                                        |                                                                               |                                                                              | Accounts payable                          |      |      | 22   |    |      |     | (12  | ) |      |     | (37  | )
|                                        |                                                                               |                                                                              | Taxes payable                             |      |      | (5   | )  |      |     | 2    |   |      |     | (8   | )
|                                        |                                                                               | Other asset and liability changes                                            |                                           |      |      |      |    |      |     |      |   |      |     |     
|                                        |                                                                               |                                                                              | Assets                                    |      |      | 2    |    |      |     | (2   | ) |      |     | 12   |  
|                                        |                                                                               |                                                                              | Liabilities                               |      |      | (22  | )  |      |     | 3    |   |      |     | (18  | )
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|                                        |                                                                               |                                                                              | Net cash provided by operating activities |      |      | 202  |    |      |     | 166  |   |      |     | 206  |  
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|Cash flows from investing activities    |                                                                               |                                                                              |                                           |      |      |      |    |      |     |      |   |     
|                                        | Additions to property, plant and equipment                                    |                                                                              |                                           | (143 | )    |      |    | (101 | )   |      |   | (118 | )  
|                                        | Net proceeds from the sale of assets and investments                          |                                                                              |                                           | 42   |      |      |    | 7    |     |      |   | 54   |    
|                                        | Net change in affiliated advances                                             |                                                                              |                                           | (100 | )    |      |    | (335 | )   |      |   | (157 | )  
|                                        | Other                                                                         |                                                                              |                                           | (26  | )    |      |    |     |     |      |   | 1    |    
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|                                        |                                                                               |                                                                              | Net cash used in investing activities     |      |      | (227 | )  |      |     | (429 | ) |      |     | (220 | )
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|Cash flows from financing activities    |                                                                               |                                                                              |                                           |      |      |      |    |      |     |      |   |     
|                                        | Net proceeds from the issuance of long-term debt                              |                                                                              |                                           |     |      |      |    | 288  |     |      |   | 13   |    
|                                        | Other                                                                         |                                                                              |                                           |     |      |      |    |     |     |      |   | 1    |    
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|                                        |                                                                               |                                                                              | Net cash provided by financing activities |      |      |     |    |      |     | 288  |   |      |     | 14   |  
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|Net change in cash and cash equivalents |                                                                               |                                                                              | (25                                       | )    |      |      | 25 |      |     |      |  |     
|Cash and cash equivalents               |                                                                               |                                                                              |                                           |      |      |      |    |      |     |      |   |     
|                                        | Beginning of period                                                           |                                                                              |                                           | 25   |      |      |    |     |     |      |   |     |    
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    
|                                        | End of period                                                                 |                                                                              | $                                         |     |      |      | $  | 25   |     |      | $ |     |    
|                                        |                                                                               |                                                                              |                                           |      |      |      |    |      |    



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ANR PIPELINE COMPANY


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


(In millions, except share amounts)


|                  |                                               |              |       |            |        |   |          |  |       |               |     |    |        |   |     |      |   |   |       |      |  
|----------------- | --------------------------------------------- | ------------ | ----- | ---------- | ------ | - | -------- |  | ----- | ------------- | --- | -- | ------ | - | --- | ---- | - | - | ----- | ---- | -
|                  |                                               | Common Stock |       | Additional |        |   |          |  | Total |              
|                  |                                               |              |       | Paid-In    |        |   | Retained |  |       | Stockholders |    
|                  |                                               | Shares       |       |            | Amount |   | Capital  |  |       | Earnings      |     |    | Equity |  
|                  |                                               |              |       |            |        |   |          |  |       |               |     |    |        |  
|January 1, 2002   |                                               |              | 1,000 |            |        | $ |         |  |       | $             | 598 |    |        | $ | 421 |      |   | $ | 1,019 |     
|                  | Net income                                    |              |       |            |        |   |          |  |       |               |     |    |        |   |     | 163  |   |   |       | 163  |  
|                  | Allocated tax benefit of El Paso equity plans |              |       |            |        |   |          |  |       |               |     | 1  |        |   |     |      |   |   |       | 1    |  
|                  |                                               |              |       |            |        |   |          |  |       |               |     |    |        |   |    
|December 31, 2002 |                                               |              | 1,000 |            |        |   |         |  |       |               | 599 |    |        |   | 584 |      |   |   | 1,183 |     
|                  | Net income                                    |              |       |            |        |   |          |  |       |               |     |    |        |   |     | 130  |   |   |       | 130  |  
|                  | Allocated tax expense of El Paso equity plans |              |       |            |        |   |          |  |       |               |     | (2 | )      |   |     |      |   |   |       | (2   | )
|                  | Non-cash dividend                             |              |       |            |        |   |          |  |       |               |     |    |        |   |     | (528 | ) |   |       | (528 | )
|                  |                                               |              |       |            |        |   |          |  |       |               |     |    |        |   |    
|December 31, 2003 |                                               |              | 1,000 |            |        |   |         |  |       |               | 597 |    |        |   | 186 |      |   |   | 783   |     
|                  | Net income                                    |              |       |            |        |   |          |  |       |               |     |    |        |   |     | 117  |   |   |       | 117  |  
|                  |                                               |              |       |            |        |   |          |  |       |               |     |    |        |   |    
|December 31, 2004 |                                               |              | 1,000 |            |        | $ |         |  |       | $             | 597 |    |        | $ | 303 |      |   | $ | 900   |     
|                  |                                               |              |       |            |        |   |          |  |       |               |     |    |        |   |    



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ANR PIPELINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1. Summary of Significant Accounting Policies


Basis of Presentation




Principles of
Consolidation






| |                 
| | ----------------
| | Use of Estimates





| |                     
| | --------------------
| | Regulated Operations

Accounting for the
Effects of Certain Types of Regulation






| |                          
| | -------------------------
| | Cash and Cash Equivalents



Allowance for Doubtful
Accounts




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Materials and
Supplies




Natural Gas
Imbalances






Property, Plant and
Equipment












Asset and Investment
Impairments


Accounting for
the Impairment or Disposal of Long-Lived Assets The Equity
Method of Accounting for Investments in Common Stock,


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Revenue Recognition




Environmental Costs and Other
Contingencies








| |             
| | ------------
| | Income Taxes





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2. Income Taxes




|         |         |                    |    |    |      |  |    |      |    |  |    |    |    | 
|-------- | ------- | ------------------ | -- | -- | ---- |  | -- | ---- | -- |  | -- | -- | -- | 
|         |         | 2004               |    |    | 2003 |  |    | 2002 |   
|         |         |                    |    |    |      |  |    |      |   
|         |         | (In millions)      |   
|Current  |         |                    |    |    |      |  |    |      |    |  |    |   
|         | Federal |                    | $  | 33 |      |  | $  | 33   |    |  | $  | 25 |   
|         | State   |                    |    | 3  |      |  |    | 3    |    |  |    | 3  |   
|         |         |                    |    |    |      |  |    |      |   
|         |         |                    | 36 |    |      |  | 36 |      |    |  | 28 |   
|         |         |                    |    |    |      |  |    |      |   
|Deferred |         |                    |    |    |      |  |    |      |    |  |    |   
|         | Federal |                    |    | 30 |      |  |    | 35   |    |  |    | 62 |   
|         | State   |                    |    | 3  |      |  |    | 3    |    |  |    | 2  |   
|         |         |                    |    |    |      |  |    |      |   
|         |         |                    | 33 |    |      |  | 38 |      |    |  | 64 |   
|         |         |                    |    |    |      |  |    |      |   
|         |         | Total income taxes |    | $  | 69   |  |    | $    | 74 |  |    | $  | 92 | 
|         |         |                    |    |    |      |  |    |      |   



|                                                  |                                                      |               |    |   |      |   |    |      |   |   |    |   | 
|------------------------------------------------- | ---------------------------------------------------- | ------------- | -- | - | ---- | - | -- | ---- | - | - | -- | - | 
|                                                  |                                                      | 2004          |    |   | 2003 |   |    | 2002 |  
|                                                  |                                                      |               |    |   |      |   |    |      |  
|                                                  |                                                      | (In millions) |   
|Income taxes at the statutory federal rate of 35% |                                                      | $             | 65 |   |      | $ | 71 |      |   | $ | 89 |  
|Increase (decrease)                               |                                                      |               |    |   |      |   |    |      |   |   |    |  
|                                                  | State income taxes, net of federal income tax effect |               |    | 3 |      |   |    | 4    |   |   |    | 3 | 
|                                                  | Other                                                |               |    | 1 |      |   |    | (1   | ) |   |    |  | 
|                                                  |                                                      |               |    |   |      |   |    |      |  
|Income taxes                                      |                                                      | $             | 69 |   |      | $ | 74 |      |   | $ | 92 |  
|                                                  |                                                      |               |    |   |      |   |    |      |  
|Effective tax rate                                |                                                      |               | 37 | % |      |   | 36 | %    |   |   | 36 | %
|                                                  |                                                      |               |    |   |      |   |    |      |  



|                           |                                                         |                              |     |     |      |   |     |     |     | 
|-------------------------- | ------------------------------------------------------- | ---------------------------- | --- | --- | ---- | - | --- | --- | --- | 
|                           |                                                         | 2004                         |     |     | 2003 |  
|                           |                                                         |                              |     |     |      |  
|                           |                                                         | (In millions)                |    
|Deferred tax liabilities   |                                                         |                              |     |     |      |   |     |    
|                           | Property, plant and equipment                           |                              | $   | 315 |      |   | $   | 290 |    
|                           | Investments in unconsolidated affiliates                |                              |     | 101 |      |   |     | 95  |    
|                           | Other assets                                            |                              |     | 24  |      |   |     | 30  |    
|                           |                                                         |                              |     |     |      |  
|                           |                                                         | Total deferred tax liability |     |     | 440  |   |     |     | 415 | 
|                           |                                                         |                              |     |     |      |  
|Deferred tax assets        |                                                         |                              |     |     |      |   |     |    
|                           | Employee benefits and deferred compensation obligations |                              |     | 8   |      |   |     | 10  |    
|                           | Environmental liability                                 |                              |     | 10  |      |   |     | 11  |    
|                           | Lease liability                                         |                              |     | 72  |      |   |     | 75  |    
|                           | Other liabilities                                       |                              |     | 13  |      |   |     | 15  |    
|                           |                                                         |                              |     |     |      |  
|                           |                                                         | Total deferred tax asset     |     |     | 103  |   |     |     | 111 | 
|                           |                                                         |                              |     |     |      |  
|Net deferred tax liability |                                                         | $                            | 337 |     |      | $ | 304 |    
|                           |                                                         |                              |     |     |      |  

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3. Financial Instruments




|                                     |                                                     |               |   |     |       |  |   |          |  |  |       |     |  |  |   |     | 
|------------------------------------ | --------------------------------------------------- | ------------- | - | --- | ----- |  | - | -------- |  |  | ----- | --- |  |  | - | --- | 
|                                     |                                                     | 2004          |   |     | 2003  | 
|                                     |                                                     |               |   |     |       | 
|                                     |                                                     | Carrying      |   |     | Fair  |  |   | Carrying |  |  | Fair  |    
|                                     |                                                     | Amount        |   |     | Value |  |   | Amount   |  |  | Value |    
|                                     |                                                     |               |   |     |       |  |   |          |  |  |       |    
|                                     |                                                     | (In millions) |  
|Balance sheet financial instruments: |                                                     |               |   |     |       |  |   |          |  |  |       |     |  |  |   |    
|                                     | Long-term debt, including current
    maturities(1) |               | $ | 808 |       |  | $ | 942      |  |  | $     | 807 |  |  | $ | 902 | 






|    |                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------
|(1) | We estimated the fair value of debt with fixed interest rates
    based on quoted market prices for the same or similar issues.



4. Debt and Other Credit Facilities




|                                 |                      |                                               |     |    |      |   |     |   |     | 
|-------------------------------- | -------------------- | --------------------------------------------- | --- | -- | ---- | - | --- | - | --- | 
|                                 |                      | 2004                                          |     |    | 2003 |  
|                                 |                      |                                               |     |    |      |  
|                                 |                      | (In millions)                                 |    
|8.875% Senior Notes due 2010     |                      | $                                             | 300 |    |      | $ | 300 |  
|13.75% Notes due 2010            |                      |                                               | 12  |    |      |   | 12  |  
|9.625% Debentures due 2021       |                      |                                               | 300 |    |      |   | 300 |  
|7.375% Debentures due 2024       |                      |                                               | 125 |    |      |   | 125 |  
|7.00% Debentures due
    2025(1) |                      |                                               | 75  |    |      |   | 75  |  
|                                 |                      |                                               |     |    |      |  
|                                 |                      |                                               | 812 |    |      |   | 812 |  
|Less:                            |                      |                                               |     |    |      |   |     |  
|                                 | Current maturities   |                                               |     | 75 |      |   |     |  |    
|                                 | Unamortized discount |                                               |     | 4  |      |   |     | 5 |    
|                                 |                      |                                               |     |    |      |  
|                                 |                      | Total long-term debt, less current maturities |     | $  | 733  |   |     | $ | 807 | 
|                                 |                      |                                               |     |    |      |  






|    |                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The holders of the $75 million, 7.00% debentures due 2025,
    have the option to require us to redeem their debentures at par
    value in 2005. Therefore, we reclassified this amount to current
    maturities of long-term debt in 2004 to reflect this option.



Credit Facilities




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5. Commitments and Contingencies




| |                  
| | -----------------
| | Legal Proceedings

Grynberg Qui Tam


Will Price (formerly Quinque). Will Price,
et al. v. Gas Pipelines and Their Predecessors, et
al.,




| |                            
| | ---------------------------
| | Governmental Investigations

Storage Reporting.


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Environmental Matters




|                                                 |  |   |    |  
|------------------------------------------------ |  | - | -- | -
|Balance at January 1, 2004                       |  | $ | 29 |  
|Additions/adjustments for remediation activities |  |   | 2  |  
|Payments for remediation activities              |  |   | (4 | )
|                                                 |  |   |   
|Balance at December 31, 2004                     |  | $ | 27 |  
|                                                 |  |   |   



CERCLA Matters.




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Rates and Regulatory
Matters


Cashout Proceeding.




Accounting for Pipeline Integrity Costs


Inquiry Regarding Income Tax Allowances.


Selective Discounting Notice of Inquiry.




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| |                                             
| | --------------------------------------------
| | Capital Commitments and Purchase Obligations



Operating Leases




|             |       |                     |    |    | 
|------------ | ----- | ------------------- | -- | -- | 
|Year Ended   |       |                    
|December 31, |       | Operating Leases(1) |   
|             |       |                     |   
|             |       | (In millions)       |   
|2005         |       | $                   | 3  |   
|2006         |       |                     | 3  |   
|2007         |       |                     | 2  |   
|2008         |       |                     | 1  |   
|2009         |       |                     | 1  |   
|Thereafter   |       |                     | 15 |   
|             |       |                     |   
|             | Total |                     | $  | 25 | 
|             |       |                     |   




|    |                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These amounts exclude our proportional share of minimum annual
    rental commitments paid by El Paso, which are allocated to us
    through an overhead allocation.



6. Retirement Benefits


Pension and Retirement Benefits




Other Postretirement Benefits




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Accounting and Disclosure Requirements Related to the Medicare
Prescription Drug, Improvement and Modernization Act of
2003




|                                 |                                                     |               |   |     |      |  |   |     |  
|-------------------------------- | --------------------------------------------------- | ------------- | - | --- | ---- |  | - | --- | -
|                                 |                                                     | 2004          |   |     | 2003 | 
|                                 |                                                     |               |   |     |      | 
|                                 |                                                     | (In millions) |  
|Change in benefit obligation:    |                                                     |               |   |     |      |  |   |    
|                                 | Projected benefit obligation at beginning of period |               | $ | 57  |      |  | $ | 53  |  
|                                 | Interest cost                                       |               |   | 3   |      |  |   | 3   |  
|                                 | Participant contributions                           |               |   | 2   |      |  |   | 2   |  
|                                 | Actuarial (gain) loss                               |               |   | (3  | )    |  |   | 5   |  
|                                 | Benefits paid                                       |               |   | (6  | )    |  |   | (6  | )
|                                 |                                                     |               |   |     |      | 
|                                 | Projected benefit obligation at end of period       |               | $ | 53  |      |  | $ | 57  |  
|                                 |                                                     |               |   |     |      | 
|Change in plan assets:           |                                                     |               |   |     |      |  |   |    
|                                 | Fair value of plan assets at beginning of period    |               | $ | 46  |      |  | $ | 36  |  
|                                 | Actual return on plan assets                        |               |   | 4   |      |  |   | 5   |  
|                                 | Employer contributions                              |               |   | 11  |      |  |   | 9   |  
|                                 | Participant contributions                           |               |   | 2   |      |  |   | 2   |  
|                                 | Benefits paid                                       |               |   | (6  | )    |  |   | (6  | )
|                                 |                                                     |               |   |     |      | 
|                                 | Fair value of plan assets at end of period          |               | $ | 57  |      |  | $ | 46  |  
|                                 |                                                     |               |   |     |      | 
|Reconciliation of funded status: |                                                     |               |   |     |      |  |   |    
|                                 | Funded status at September 30                       |               | $ | 4   |      |  | $ | (11 | )
|                                 | Fourth quarter contributions                        |               |   | 2   |      |  |   | 2   |  
|                                 | Unrecognized net actuarial gain                     |               |   | (10 | )    |  |   | (6  | )
|                                 |                                                     |               |   |     |      | 
|                                 | Net accrued benefit cost at
    December 31(1)      |               | $ | (4  | )    |  | $ | (15 | )
|                                 |                                                     |               |   |     |      | 






|    |                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Based on our current funded status, we reflected $7 million
    of our accrued benefit obligation as a current liability at
    December 31, 2003.



|                         |       |   |    |    | 
|------------------------ | ----- | - | -- | -- | 
|Year Ending December 31, |       |  
|                         |       |  
|2005                     |       | $ | 5  |   
|2006                     |       |   | 5  |   
|2007                     |       |   | 5  |   
|2008                     |       |   | 5  |   
|2009                     |       |   | 5  |   
|2010-2014                |       |   | 23 |   
|                         |       |   |   
|                         | Total |   | $  | 48 | 
|                         |       |   |   

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|                                |  |               |    |   |      |   |    |      |  |   |    |  
|------------------------------- |  | ------------- | -- | - | ---- | - | -- | ---- |  | - | -- | -
|                                |  | 2004          |    |   | 2003 |   |    | 2002 | 
|                                |  |               |    |   |      |   |    |      | 
|                                |  | (In millions) |   
|Interest cost                   |  | $             | 3  |   |      | $ | 3  |      |  | $ | 4  |  
|Expected return on plan assets  |  |               | (2 | ) |      |   | (2 | )    |  |   | (2 | )
|                                |  |               |    |   |      |   |    |      | 
|Net postretirement benefit cost |  | $             | 1  |   |      | $ | 1  |      |  | $ | 2  |  
|                                |  |               |    |   |      |   |    |      | 



|                                                            |                                       |           |  |      |      |  |  |      |  |  |  |      | 
|----------------------------------------------------------- | ------------------------------------- | --------- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                                                            |                                       | 2004      |  |      | 2003 |  |  | 2002 | 
|                                                            |                                       |           |  |      |      |  |  |      | 
|                                                            |                                       | (Percent) | 
|Assumptions related to benefit obligations at September 30: |                                       |           |  |      |      |  |  |      |  |  |  |     
|                                                            | Discount rate                         |           |  | 5.75 |      |  |  | 6.00 |  |  |  |      | 
|Assumptions related to benefit costs at December 31:        |                                       |           |  |      |      |  |  |      |  |  |  |     
|                                                            | Discount rate                         |           |  | 6.00 |      |  |  | 6.75 |  |  |  | 7.25 | 
|                                                            | Expected return on plan
    assets(1) |           |  | 7.50 |      |  |  | 7.50 |  |  |  | 7.50 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The expected return on plan assets is a pre-tax rate (before a
    tax rate ranging from 35 percent to 38 percent on
    postretirement benefits) that is primarily based on an expected
    risk-free investment return, adjusted for historical risk
    premiums and specific risk adjustments associated with our debt
    and equity securities. These expected returns were then weighted
    based on our target asset allocations of our investment
    portfolio.



|                               |                                               |               |   |    |      |  |   |    |  
|------------------------------ | --------------------------------------------- | ------------- | - | -- | ---- |  | - | -- | -
|                               |                                               | 2004          |   |    | 2003 | 
|                               |                                               |               |   |    |      | 
|                               |                                               | (In millions) |  
|One percentage point increase: |                                               |               |   |    |      |  |   |   
|                               | Aggregate of service cost and interest cost   |               | $ |   |      |  | $ |   |  
|                               | Accumulated postretirement benefit obligation |               |   | 3  |      |  |   | 3  |  
|One percentage point decrease: |                                               |               |   |    |      |  |   |   
|                               | Aggregate of service cost and interest cost   |               | $ |   |      |  | $ |   |  
|                               | Accumulated postretirement benefit obligation |               |   | (2 | )    |  |   | (2 | )

Other Postretirement Plan
Assets




|                  |       |           |    |     |        |  |    |     | 
|----------------- | ----- | --------- | -- | --- | ------ |  | -- | --- | 
|                  |       | Actual    |    |     | Actual | 
|Asset Category    |       | 2004      |    |     | 2003   | 
|                  |       |           |    |     |        | 
|                  |       | (Percent) |   
|Equity securities |       |           | 59 |     |        |  | 28 |    
|Debt securities   |       |           | 32 |     |        |  | 58 |    
|Other             |       |           | 9  |     |        |  | 14 |    
|                  |       |           |    |     |        | 
|                  | Total |           |    | 100 |        |  |    | 100 | 
|                  |       |           |    |     |        | 



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7. Transactions with Major Customer




|                   |  |               |    |  |      |   |    |      |  |   |     | 
|------------------ |  | ------------- | -- |  | ---- | - | -- | ---- |  | - | --- | 
|                   |  | 2004          |    |  | 2003 |   |    | 2002 | 
|                   |  |               |    |  |      |   |    |      | 
|                   |  | (In millions) |   
|We
    Energies(1) |  | $             | 59 |  |      | $ | 93 |      |  | $ | 101 | 

| | 
| | 
| | 

| |     |                                                                                                     
| | --- | ----------------------------------------------------------------------------------------------------
| | (1) | We Energies is the operating name of Wisconsin Gas Company and
    Wisconsin Electric Power Company.

8. Supplemental Cash Flow Information




|                                           |  |               |    |  |      |   |    |      |  |   |    | 
|------------------------------------------ |  | ------------- | -- |  | ---- | - | -- | ---- |  | - | -- | 
|                                           |  | 2004          |    |  | 2003 |   |    | 2002 | 
|                                           |  |               |    |  |      |   |    |      | 
|                                           |  | (In millions) |   
|Interest paid, net of capitalized interest |  | $             | 68 |  |      | $ | 56 |      |  | $ | 40 | 
|Income tax payments                        |  |               | 41 |  |      |   | 35 |      |  |   | 28 | 

9. Investments in Unconsolidated Affiliates and
Transactions with Affiliates


Great Lakes.




|                        |                                   |                         |   |     |      |  |   |      |  |  |   |     | 
|----------------------- | --------------------------------- | ----------------------- | - | --- | ---- |  | - | ---- |  |  | - | --- | 
|                        |                                   | Year Ended December 31, |  
|                        |                                   |                         |  
|                        |                                   | 2004                    |   |     | 2003 |  |   | 2002 | 
|                        |                                   |                         |   |     |      |  |   |      | 
|                        |                                   | (In millions)           |  
|Operating results data: |                                   |                         |   |     |      |  |   |      |  |  |   |    
|                        | Operating revenues                |                         | $ | 133 |      |  | $ | 129  |  |  | $ | 127 | 
|                        | Operating expenses                |                         |   | 56  |      |  |   | 58   |  |  |   | 50  | 
|                        | Income from continuing operations |                         |   | 43  |      |  |   | 37   |  |  |   | 43  | 
|                        | Net
    income(1)                 |                         |   | 43  |      |  |   | 37   |  |  |   | 43  | 

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|                         |                               |               |   |     |      |  |   |     | 
|------------------------ | ----------------------------- | ------------- | - | --- | ---- |  | - | --- | 
|                         |                               | December 31,  |  
|                         |                               |               |  
|                         |                               | 2004          |   |     | 2003 | 
|                         |                               |               |   |     |      | 
|                         |                               | (In millions) |  
|Financial position data: |                               |               |   |     |      |  |   |    
|                         | Current assets                |               | $ | 76  |      |  | $ | 61  | 
|                         | Non-current assets            |               |   | 582 |      |  |   | 603 | 
|                         | Short-term debt               |               |   | 5   |      |  |   | 5   | 
|                         | Other current liabilities     |               |   | 31  |      |  |   | 25  | 
|                         | Long-term debt                |               |   | 215 |      |  |   | 218 | 
|                         | Other non-current liabilities |               |   | 150 |      |  |   | 142 | 
|                         | Equity in net
    assets(1)   |               |   | 257 |      |  |   | 274 | 

| | 
| | 
| | 

| |     |                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Our proportionate share of net income and equity in net assets
    includes our share of taxes payable recorded by partners of
    Great Lakes L.P.

Transactions with Affiliates


Cash Management Program.


Affiliate Receivables and Payables.










Other.






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Affiliate Revenues and Expenses.










|                                                          |  |               |     |  |      |   |     |      |  |   |     | 
|--------------------------------------------------------- |  | ------------- | --- |  | ---- | - | --- | ---- |  | - | --- | 
|                                                          |  | 2004          |     |  | 2003 |   |     | 2002 | 
|                                                          |  |               |     |  |      |   |     |      | 
|                                                          |  | (In millions) |    
|Revenues from affiliates                                  |  | $             | 10  |  |      | $ | 18  |      |  | $ | 29  | 
|Operation and maintenance expense from affiliates         |  |               | 113 |  |      |   | 128 |      |  |   | 128 | 
|Reimbursement of operating expenses charged to affiliates |  |               | 4   |  |      |   | 4   |      |  |   | 3   | 

10. Supplemental Selected Quarterly Financial Information
(Unaudited)




|     |                    |                |   |     |         |  |   |              |  |  |             |     |  |       |   |     |  |  |   |     | 
|---- | ------------------ | -------------- | - | --- | ------- |  | - | ------------ |  |  | ----------- | --- |  | ----- | - | --- |  |  | - | --- | 
|     |                    | Quarters Ended |   |     |        
|     |                    |                |   |     |        
|     |                    | March 31       |   |     | June 30 |  |   | September 30 |  |  | December 31 |     |  | Total |  
|     |                    |                |   |     |         |  |   |              |  |  |             |     |  |       |  
|     |                    | (In millions)  |  
|2004 |                    |                |   |     |         |  |   |              |  |  |             |     |  |       |   |     |  |  |   |    
|     | Operating revenues |                | $ | 138 |         |  | $ | 103          |  |  | $           | 101 |  |       | $ | 128 |  |  | $ | 470 | 
|     | Operating income   |                |   | 64  |         |  |   | 31           |  |  |             | 26  |  |       |   | 53  |  |  |   | 174 | 
|     | Net income         |                |   | 43  |         |  |   | 20           |  |  |             | 21  |  |       |   | 33  |  |  |   | 117 | 
|2003 |                    |                |   |     |         |  |   |              |  |  |             |     |  |       |   |     |  |  |   |    
|     | Operating revenues |                | $ | 185 |         |  | $ | 126          |  |  | $           | 117 |  |       | $ | 126 |  |  | $ | 554 | 
|     | Operating income   |                |   | 92  |         |  |   | 40           |  |  |             | 33  |  |       |   | 43  |  |  |   | 208 | 
|     | Net income         |                |   | 61  |         |  |   | 22           |  |  |             | 18  |  |       |   | 29  |  |  |   | 130 | 

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Report of Independent Registered Public Accounting Firm














34



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SCHEDULE II


ANR PIPELINE COMPANY


VALUATION AND QUALIFYING ACCOUNTS


Years Ended December 31, 2004, 2003 and 2002


(In millions)


|            |                                 |            |   |    |            |  |   |            |   |            |          |    |         |           |   |    |   |  |   |    | 
|----------- | ------------------------------- | ---------- | - | -- | ---------- |  | - | ---------- | - | ---------- | -------- | -- | ------- | --------- | - | -- | - |  | - | -- | 
|            |                                 | Balance at |   |    | Charged to |  |   |            |   | Charged to |          |    | Balance |          
|            |                                 | Beginning  |   |    | Costs and  |  |   |            |   | Other      |          |    | at End  |          
|Description |                                 | of Period  |   |    | Expenses   |  |   | Deductions |   |            | Accounts |    |         | of Period |  
|            |                                 |            |   |    |            |  |   |            |   |            |          |    |         |           |  
|2004        |                                 |            |   |    |            |  |   |            |   |            |          |    |         |           |   |    |   |  |   |   
|            | Allowance for doubtful accounts |            | $ | 3  |            |  | $ |           |   |            | $        |   |         |           | $ |   |   |  | $ | 3  | 
|            | Environmental reserves          |            |   | 29 |            |  |   | 2          |   |            |          | (4 | )(1)    |           |   |   |   |  |   | 27 | 
|2003        |                                 |            |   |    |            |  |   |            |   |            |          |    |         |           |   |    |   |  |   |   
|            | Allowance for doubtful accounts |            | $ | 2  |            |  | $ |           |   |            | $        |   |         |           | $ | 1  |   |  | $ | 3  | 
|            | Legal reserves                  |            |   | 2  |            |  |   | (1         | ) |            |          |   |         |           |   | (1 | ) |  |   |   | 
|            | Environmental reserves          |            |   | 26 |            |  |   | 8          |   |            |          | (6 | )(1)    |           |   | 1  |   |  |   | 29 | 
|2002        |                                 |            |   |    |            |  |   |            |   |            |          |    |         |           |   |    |   |  |   |   
|            | Allowance for doubtful accounts |            | $ | 3  |            |  | $ |           |   |            | $        | (1 | )       |           | $ |   |   |  | $ | 2  | 
|            | Legal reserves                  |            |   |   |            |  |   |           |   |            |          |   |         |           |   | 2  |   |  |   | 2  | 
|            | Environmental reserves          |            |   | 16 |            |  |   | 13         |   |            |          | (2 | )(1)    |           |   | (1 | ) |  |   | 26 | 






|    |                                                                  
|--- | -----------------------------------------------------------------
|(1) | Primarily payments made for environmental remediation activities.

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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
    AND FINANCIAL DISCLOSURE








|         |                        
|-------- | -----------------------
|ITEM 9A. | CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures






Internal Control Over Financial Reporting




Access to Financial Application Programs and Data.


Changes in Internal Control over Financial Reporting


Changes in the Fourth Quarter 2004.


Changes in 2005.


36



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|         |                  
|-------- | -----------------
|ITEM 9B. | OTHER INFORMATION






PART III







ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES


Audit Fees




All Other Fees




Policy for Approval of Audit and Non-Audit Fees







PART IV





ITEM 15. EXHIBITS AND FINANCIAL STATEMENT
SCHEDULES


(a) The following documents are filed as part of this
report:






|                                                        |  |      |    | 
|------------------------------------------------------- |  | ---- | -- | 
|                                                        |  | Page |   
|                                                        |  |      |   
|Consolidated Statements of Income                       |  |      | 16 | 
|Consolidated Balance Sheets                             |  |      | 17 | 
|Consolidated Statements of Cash Flows                   |  |      | 18 | 
|Consolidated Statements of Stockholders Equity         |  |      | 19 | 
|Notes to Consolidated Financial Statements              |  |      | 20 | 
|Report of Independent Registered Public Accounting Firm |  |      | 34 | 

37



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|                                                 |                                                         |      |  |    | 
|------------------------------------------------ | ------------------------------------------------------- | ---- |  | -- | 
|                                                 |                                                         | Page | 
|                                                 |                                                         |      | 
|Great Lakes Gas Transmission Limited Partnership |                                                         |      |  |   
|                                                 | Independent Auditors Report                            |      |  | 39 | 
|                                                 | Consolidated Statements of Income and Partners Capital |      |  | 40 | 
|                                                 | Consolidated Balance Sheets                             |      |  | 41 | 
|                                                 | Consolidated Statements of Cash Flows                   |      |  | 42 | 
|                                                 | Notes to Consolidated Financial Statements              |      |  | 43 | 



|                                                |  |  |    | 
|----------------------------------------------- |  |  | -- | 
|Schedule II  Valuation and Qualifying Accounts |  |  | 35 | 



| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | All other schedules are omitted because they are not applicable,
    or the required information is disclosed in the financial
    statements or accompanying notes.

|                 |  |  |    | 
|---------------- |  |  | -- | 
|3. Exhibits list |  |  | 47 | 

38



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INDEPENDENT AUDITORS REPORT


















39



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GREAT LAKES GAS TRANSMISSION LIMITED PARTNERSHIP


CONSOLIDATED STATEMENTS OF


INCOME AND PARTNERS CAPITAL


|                        |                                                              |                         |         |          |      |   |         |          |   |   |         |          |  
|----------------------- | ------------------------------------------------------------ | ----------------------- | ------- | -------- | ---- | - | ------- | -------- | - | - | ------- | -------- | -
|                        |                                                              | Years Ended December 31 |        
|                        |                                                              |                         |        
|                        |                                                              | 2004                    |         |          | 2003 |   |         | 2002     |  
|                        |                                                              |                         |         |          |      |   |         |          |  
|                        |                                                              | (Thousands of Dollars)  |        
|Transportation Revenues |                                                              | $                       | 284,327 |          |      | $ | 279,208 |          |   | $ | 277,515 |         
|Operating Expenses      |                                                              |                         |         |          |      |   |         |          |   |   |         |         
|                        | Operation and Maintenance                                    |                         |         | 34,723   |      |   |         | 43,052   |   |   |         | 37,075   |  
|                        | Depreciation                                                 |                         |         | 57,756   |      |   |         | 57,238   |   |   |         | 56,916   |  
|                        | Income Taxes Payable by Partners                             |                         |         | 47,058   |      |   |         | 40,530   |   |   |         | 45,400   |  
|                        | Property and Other Taxes                                     |                         |         | 23,265   |      |   |         | 24,929   |   |   |         | 14,393   |  
|                        |                                                              |                         |         |          |      |   |         |          |  
|                        |                                                              |                         | 162,802 |          |      |   | 165,749 |          |   |   | 153,784 |         
|                        |                                                              |                         |         |          |      |   |         |          |  
|Operating Income        |                                                              |                         | 121,525 |          |      |   | 113,459 |          |   |   | 123,731 |         
|Other Income (Expense)  |                                                              |                         |         |          |      |   |         |          |   |   |         |         
|                        | Interest on Long Term Debt                                   |                         |         | (37,718  | )    |   |         | (40,239  | ) |   |         | (44,539  | )
|                        | Other, Net                                                   |                         |         | 1,373    |      |   |         | 1,102    |   |   |         | 3,850    |  
|                        |                                                              |                         |         |          |      |   |         |          |  
|                        |                                                              |                         | (36,345 | )        |      |   | (39,137 | )        |   |   | (40,689 | )       
|                        |                                                              |                         |         |          |      |   |         |          |  
|Net Income              |                                                              | $                       | 85,180  |          |      | $ | 74,322  |          |   | $ | 83,042  |         
|                        |                                                              |                         |         |          |      |   |         |          |  
|Partners Capital       |                                                              |                         |         |          |      |   |         |          |   |   |         |         
|                        | Balance at Beginning of Year                                 |                         | $       | 452,007  |      |   |         | 445,512  |   |   |         | 443,640  |  
|                        | Contributions by General Partners                            |                         |         | 29,398   |      |   |         | 22,459   |   |   |         | 25,432   |  
|                        | Net Income                                                   |                         |         | 85,180   |      |   |         | 74,322   |   |   |         | 83,042   |  
|                        | Current Income Taxes Payable by Partners Charged to Earnings |                         |         | 31,536   |      |   |         | 24,238   |   |   |         | 27,801   |  
|                        | Distributions to Partners                                    |                         |         | (177,620 | )    |   |         | (114,524 | ) |   |         | (134,403 | )
|                        |                                                              |                         |         |          |      |   |         |          |  
|                        | Balance at End of Year                                       |                         | $       | 420,501  |      |   | $       | 452,007  |   |   | $       | 445,512  |  
|                        |                                                              |                         |         |          |      |   |         |          |  

The accompanying notes are an integral part of these
statements.


40



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GREAT LAKES GAS TRANSMISSION LIMITED PARTNERSHIP


CONSOLIDATED BALANCE SHEETS


|                                |                                             |                        |           |           |      |   |           |           | 
|------------------------------- | ------------------------------------------- | ---------------------- | --------- | --------- | ---- | - | --------- | --------- | 
|                                |                                             | As of December 31      |          
|                                |                                             |                        |          
|                                |                                             | 2004                   |           |           | 2003 |  
|                                |                                             |                        |           |           |      |  
|                                |                                             | (Thousands of Dollars) |          
|ASSETS                         
|Current Assets                  |                                             |                        |           |           |      |   |           |          
|                                | Cash and Cash Equivalents                   |                        | $         | 59,034    |      |   | $         | 40,156    | 
|                                | Accounts Receivable                         |                        |           | 44,137    |      |   |           | 34,747    | 
|                                | Materials and Supplies, at Average Cost     |                        |           | 10,043    |      |   |           | 10,020    | 
|                                | Prepayments and Other                       |                        |           | 5,146     |      |   |           | 3,511     | 
|                                |                                             |                        |           |           |      |  
|                                |                                             |                        | 118,360   |           |      |   | 88,434    |          
|Gas Utility Plant               |                                             |                        |           |           |      |   |           |          
|                                | Property, Plant and Equipment               |                        |           | 2,015,202 |      |   |           | 2,011,279 | 
|                                | Less Accumulated Depreciation               |                        |           | 919,287   |      |   |           | 870,356   | 
|                                |                                             |                        |           |           |      |  
|                                |                                             |                        | 1,095,915 |           |      |   | 1,140,923 |          
|                                |                                             |                        |           |           |      |  
|                                |                                             | $                      | 1,214,275 |           |      | $ | 1,229,357 |          
|                                |                                             |                        |           |           |      |  
|LIABILITIES & PARTNERS CAPITAL
|Current Liabilities             |                                             |                        |           |           |      |   |           |          
|                                | Current Maturities of Long Term Debt        |                        | $         | 10,000    |      |   | $         | 10,000    | 
|                                | Accounts Payable                            |                        |           | 27,984    |      |   |           | 14,850    | 
|                                | Property and Other Taxes                    |                        |           | 24,107    |      |   |           | 25,077    | 
|                                | Accrued Interest and Other                  |                        |           | 13,580    |      |   |           | 14,025    | 
|                                |                                             |                        |           |           |      |  
|                                |                                             |                        | 75,671    |           |      |   | 63,952    |          
|Long Term Debt                  |                                             |                        | 460,000   |           |      |   | 470,000   |          
|Other Liabilities               |                                             |                        |           |           |      |   |           |          
|                                | Amounts Equivalent to Deferred Income Taxes |                        |           | 256,959   |      |   |           | 241,281   | 
|                                | Other                                       |                        |           | 1,144     |      |   |           | 2,117     | 
|                                |                                             |                        |           |           |      |  
|                                |                                             |                        | 258,103   |           |      |   | 243,398   |          
|                                |                                             |                        |           |           |      |  
|Partners Capital               |                                             |                        | 420,501   |           |      |   | 452,007   |          
|                                |                                             |                        |           |           |      |  
|                                |                                             | $                      | 1,214,275 |           |      | $ | 1,229,357 |          
|                                |                                             |                        |           |           |      |  

The accompanying notes are an integral part of these
statements.


41



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##### Table of Contents



GREAT LAKES GAS TRANSMISSION LIMITED PARTNERSHIP


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                            |                                                              |                                                                  |                          |          |        |        |          |          |        |        |          |          |        |        |  
|------------------------------------------------------------------------------------------- | ------------------------------------------------------------ | ---------------------------------------------------------------- | ------------------------ | -------- | ------ | ------ | -------- | -------- | ------ | ------ | -------- | -------- | ------ | ------ | -
|                                                                                            |                                                              | Years Ended December 31                                          |                         
|                                                                                            |                                                              |                                                                  |                         
|                                                                                            |                                                              | 2004                                                             |                          |          | 2003   |        |          | 2002     |       
|                                                                                            |                                                              |                                                                  |                          |          |        |        |          |          |       
|                                                                                            |                                                              | (Thousands of Dollars)                                           |                         
|Cash Flow Increase (Decrease) from:                                                         |                                                              |                                                                  |                          |          |        |        |          |          |        |        |          |         
|Operating Activities                                                                        |                                                              |                                                                  |                          |          |        |        |          |          |        |        |          |         
|                                                                                            | Net Income                                                   |                                                                  | $                        | 85,180   |        |        | $        | 74,322   |        |        | $        | 83,042   |       
|                                                                                            | Adjustments to Reconcile Net Income to Operating Cash Flows: |                                                                  |                          |          |        |        |          |          |        |        |          |          |       
|                                                                                            |                                                              | Depreciation                                                     |                          |          | 57,756 |        |          |          | 57,238 |        |          |          | 56,916 |       
|                                                                                            |                                                              | Amounts Equivalent to Deferred Income Taxes                      |                          |          | 15,678 |        |          |          | 16,983 |        |          |          | 18,241 |       
|                                                                                            |                                                              | Allowance for Funds Used During Construction                     |                          |          | (157   | )      |          |          | (398   | )      |          |          | (500   | )     
|                                                                                            |                                                              | Changes in Current Assets and Liabilities:                       |                          |          |        |        |          |          |        |        |          |          |        |       
|                                                                                            |                                                              |                                                                  | Accounts Receivable      |          |        | (9,390 | )        |          |        | 1,529  |          |          |        | (6,250 | )
|                                                                                            |                                                              |                                                                  | Accounts Payable         |          |        | 13,134 |          |          |        | (1,642 | )        |          |        | 2,148  |  
|                                                                                            |                                                              |                                                                  | Property and Other Taxes |          |        | (970   | )        |          |        | (1,687 | )        |          |        | (1,131 | )
|                                                                                            |                                                              |                                                                  | Other                    |          |        | (3,076 | )        |          |        | (337   | )        |          |        | 678    |  
|                                                                                            |                                                              |                                                                  |                          |          |        |        |          |          |       
|                                                                                            |                                                              |                                                                  | 158,155                  |          |        |        | 146,008  |          |        |        | 153,144  |         
|Investment in Utility Plant                                                                 |                                                              |                                                                  | (12,591                  | )        |        |        | (27,277  | )        |        |        | (34,292  | )       
|Financing Activities                                                                        |                                                              |                                                                  |                          |          |        |        |          |          |        |        |          |         
|                                                                                            | Repayment of Long Term Debt                                  |                                                                  |                          | (10,000  | )      |        |          | (41,500  | )      |        |          | (47,250  | )     
|                                                                                            | Contributions by General Partners                            |                                                                  |                          | 29,398   |        |        |          | 22,459   |        |        |          | 25,432   |       
|                                                                                            | Current Income Taxes Payable by Partners Charged to Earnings |                                                                  |                          | 31,536   |        |        |          | 24,238   |        |        |          | 27,801   |       
|                                                                                            | Distribution to Partners                                     |                                                                  |                          | (177,620 | )      |        |          | (114,524 | )      |        |          | (134,403 | )     
|                                                                                            |                                                              |                                                                  |                          |          |        |        |          |          |       
|                                                                                            |                                                              |                                                                  | (126,686                 | )        |        |        | (109,327 | )        |        |        | (128,420 | )       
|Change in Cash and Cash Equivalents                                                         |                                                              |                                                                  | 18,878                   |          |        |        | 9,404    |          |        |        | (9,568   | )       
|Cash and Cash Equivalents:                                                                  |                                                              |                                                                  |                          |          |        |        |          |          |        |        |          |         
|                                                                                            | Beginning of Year                                            |                                                                  |                          | 40,156   |        |        |          | 30,752   |        |        |          | 40,320   |       
|                                                                                            |                                                              |                                                                  |                          |          |        |        |          |          |       
|                                                                                            | End of Year                                                  |                                                                  | $                        | 59,034   |        |        | $        | 40,156   |        |        | $        | 30,752   |       
|                                                                                            |                                                              |                                                                  |                          |          |        |        |          |          |       
|Supplemental Disclosure of Cash Flow Information
    Cash Paid During the Year for Interest |                                                              |                                                                  |                          |          |        |        |          |          |        |        |          |         
|                                                                                            |                                                              | (Net of Amounts Capitalized of $48, $150 and $214, Respectively) |                          | $        | 37,903 |        |          | $        | 40,576 |        |          | $        | 45,004 |       
|                                                                                            |                                                              |                                                                  |                          |          |        |        |          |          |       

The accompanying notes are an integral part of these
statements.


42



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##### Table of Contents



GREAT LAKES GAS TRANSMISSION LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|  |                            
|- | ---------------------------
|1 | Organization and Management





|                         |                                                                                               |             |  |       |      |  |  |       | 
|------------------------ | --------------------------------------------------------------------------------------------- | ----------- |  | ----- | ---- |  |  | ----- | 
|                         |                                                                                               | Ownership % | 
|                         |                                                                                               |             | 
|Partner (Parent Company) |                                                                                               | 2004        |  |       | 2003 | 
|                         |                                                                                               |             |  |       |      | 
|General Partners:        |                                                                                               |             |  |       |      |  |  |      
|                         | El Paso Great Lakes, Inc. (El Paso Corporation)                                               |             |  | 46.61 |      |  |  | 46.33 | 
|                         | TransCanada GL, Inc. (TransCanada PipeLines Ltd.)                                             |             |  | 46.61 |      |  |  | 46.33 | 
|Limited Partner:         |                                                                                               |             |  |       |      |  |  |      
|                         | Great Lakes Gas Transmission Company (TransCanada PipeLines Ltd.
    and El Paso Corporation) |             |  | 6.78  |      |  |  | 7.34  | 



2     Summary of Significant
Accounting Policies


Principles of Consolidation and Basis of Presentation










Regulation


Accounting for the Effects of
Certain Types of Regulation


Accounts Receivable




43



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##### Table of Contents





Gas Utility Plant and Depreciation






Asset Retirement Obligations




Income Taxes






3     Affiliated Company
Transactions




|                         |                                           |                |        |         |      |  |        |         |  |  |        |         | 
|------------------------ | ----------------------------------------- | -------------- | ------ | ------- | ---- |  | ------ | ------- |  |  | ------ | ------- | 
|                         |                                           | (In Thousands) |       
|                         |                                           |                |       
|                         |                                           | 2004           |        |         | 2003 |  |        | 2002    | 
|                         |                                           |                |        |         |      |  |        |         | 
|Accounts receivable      |                                           | $              | 12,827 |         |      |  | 16,062 |         |  |  | 15,989 |        
|Accounts payable         |                                           |                | 1,845  |         |      |  | 1,135  |         |  |  | 622    |        
|Transportation revenues: |                                           |                |        |         |      |  |        |         |  |  |        |        
|                         | TransCanada PipeLines Ltd. and affiliates |                |        | 164,810 |      |  |        | 166,578 |  |  |        | 163,442 | 
|                         | El Paso Corporation and affiliates        |                |        | 20,581  |      |  |        | 23,877  |  |  |        | 24,875  | 





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##### Table of Contents







|                |  |                |          |   |      |  |            |      |  |  |            |  
|--------------- |  | -------------- | -------- | - | ---- |  | ---------- | ---- |  |  | ---------- | -
|                |  | (In Thousands) |         
|                |  |                |         
|                |  | 2004           |          |   | 2003 |  |            | 2002 | 
|                |  |                |          |   |      |  |            |      | 
|Pension         |  | $              | (743,000 | ) |      |  | (2,600,000 | )    |  |  | (5,400,000 | )
|Post-Retirement |  |                | 202,000  |   |      |  | 204,000    |      |  |  | 236,000    |  



|  |     
|- | ----
|4 | Debt

|                                                                                  |                                              |                |         |         |      |  |         |         | 
|--------------------------------------------------------------------------------- | -------------------------------------------- | -------------- | ------- | ------- | ---- |  | ------- | ------- | 
|                                                                                  |                                              | (In Thousands) |        
|                                                                                  |                                              |                |        
|                                                                                  |                                              | 2004           |         |         | 2003 | 
|                                                                                  |                                              |                |         |         |      | 
|Senior Notes, unsecured, interest due semiannually, principal
    due as follows: |                                              |                |         |         |      |  |         |        
|                                                                                  | 8.74% series, due 2003 to 2011               |                | $       | 70,000  |      |  |         | 80,000  | 
|                                                                                  | 9.09% series, due 2012 to 2021               |                |         | 100,000 |      |  |         | 100,000 | 
|                                                                                  | 6.73% series, due 2009 to 2018               |                |         | 90,000  |      |  |         | 90,000  | 
|                                                                                  | 6.95% series, due 2019 to 2028               |                |         | 110,000 |      |  |         | 110,000 | 
|                                                                                  | 8.08% series, due 2021 to 2030               |                |         | 100,000 |      |  |         | 100,000 | 
|                                                                                  |                                              |                |         |         |      | 
|                                                                                  |                                              |                | 470,000 |         |      |  | 480,000 |        
|                                                                                  | Less current maturities                      |                |         | 10,000  |      |  |         | 10,000  | 
|                                                                                  |                                              |                |         |         |      | 
|                                                                                  | Total long term debt less current maturities |                | $       | 460,000 |      |  |         | 470,000 | 
|                                                                                  |                                              |                |         |         |      | 







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|  |                                 
|- | --------------------------------
|5 | Income Taxes Payable by Partners



|         |         |                |        |        |      |  |        |        |  |  |        |        | 
|-------- | ------- | -------------- | ------ | ------ | ---- |  | ------ | ------ |  |  | ------ | ------ | 
|         |         | (In Thousands) |       
|         |         |                |       
|         |         | 2004           |        |        | 2003 |  |        | 2002   | 
|         |         |                |        |        |      |  |        |        | 
|Current  |         |                |        |        |      |  |        |        |  |  |        |       
|         | Federal |                | $      | 30,187 |      |  |        | 23,201 |  |  |        | 26,612 | 
|         | State   |                |        | 1,349  |      |  |        | 1,037  |  |  |        | 1,189  | 
|         |         |                |        |        |      |  |        |        | 
|         |         |                | 31,536 |        |      |  | 24,238 |        |  |  | 27,801 |       
|         |         |                |        |        |      |  |        |        | 
|Deferred |         |                |        |        |      |  |        |        |  |  |        |       
|         | Federal |                |        | 14,833 |      |  |        | 15,556 |  |  |        | 16,808 | 
|         | State   |                |        | 689    |      |  |        | 736    |  |  |        | 791    | 
|         |         |                |        |        |      |  |        |        | 
|         |         |                | 15,522 |        |      |  | 16,292 |        |  |  | 17,599 |       
|         |         |                |        |        |      |  |        |        | 
|         |         | $              | 47,058 |        |      |  | 40,530 |        |  |  | 45,400 |       
|         |         |                |        |        |      |  |        |        | 





|                                         |  |                |          |   |      |  |          |  
|---------------------------------------- |  | -------------- | -------- | - | ---- |  | -------- | -
|                                         |  | (In Thousands) |         
|                                         |  |                |         
|                                         |  | 2004           |          |   | 2003 | 
|                                         |  |                |          |   |      | 
|Deferred tax assets  other              |  | $              | 4,889    |   |      |  | 5,168    |  
|Deferred tax liabilities  utility plant |  |                | (245,786 | ) |      |  | (230,614 | )
|Deferred tax liabilities  other         |  |                | (16,062  | ) |      |  | (15,835  | )
|                                         |  |                |          |   |      | 
|Net deferred tax liability               |  | $              | (256,959 | ) |      |  | (241,281 | )
|                                         |  |                |          |   |      | 



|  |                
|- | ---------------
|6 | Severance Costs





|  |                
|- | ---------------
|7 | Use Tax Refunds



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##### Table of Contents



ANR PIPELINE COMPANY


EXHIBIT LIST


December 31, 2004




|        |      |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------- | ---- |  | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |  |            
|Number  |      |  | Description
|        |      |  |            
|        | 3.A  |  |             | Amended and Restated Certificate of Incorporation dated
    March 7, 2002 (Exhibit 3.A to our 2001 Form 10-K).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 3.B  |  |             | By-laws dated June 24, 2002 (Exhibit 3.B to our 2002
    Form 10-K).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 4.A  |  |             | Indenture dated as of February 15, 1994 and First
    Supplemental Indenture dated as of February 15, 1994.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 4.B  |  |             | Indenture dated as of March 5, 2003 between ANR Pipeline
    Company and The Bank of New York Trust Company, N.A.,
    successor to The Bank of New York, as Trustee (Exhibit 4.1
    to our Form 8-K filed March 5, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10.A |  |             | Amended and Restated Credit Agreement dated as of
    November 23, 2004, among El Paso Corporation, ANR Pipeline
    Company, Colorado Interstate Gas Company, El Paso Natural Gas
    Company, Tennessee Gas Pipeline Company, the several banks and
    other financial institutions from time to time parties thereto
    and JPMorgan Chase Bank, N.A., as administrative agent and as
    collateral agent (Exhibit 10.A to our Form 8-K filed
    November 29, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10.B |  |             | Amended and Restated Security Agreement dated as of
    November 23, 2004, made by among El Paso Corporation, ANR
    Pipeline Company, Colorado Interstate Gas Company, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, the
    Subsidiary Grantors and certain other credit parties thereto and
    JPMorgan Chase Bank, N.A., not in its individual capacity, but
    solely as collateral agent for the Secured Parties and as the
    depository bank (Exhibit 10.B to our Form 8-K filed
    November 29, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10.C |  |             | $3,000,000,000 Revolving Credit Agreement dated as of
    April 16, 2003 among El Paso Corporation, El Paso Natural
    Gas Company, Tennessee Gas Pipeline Company and ANR Pipeline
    Company, as Borrowers, the Lenders Party thereto, and JPMorgan
    Chase Bank, as Administrative Agent, ABN Amro Bank N.V. and
    Citicorp North America, Inc., as Co-Document Agents, Bank of
    America, N.A. and Credit Suisse First Boston, as Co-Syndication
    Agents, J.P. Morgan Securities Inc. and Citigroup Global Markets
    Inc., as Joint Bookrunners and Co-Lead Arrangers.
    (Exhibit 99.1 to El Paso Corporations Form 8-K
    filed April 18, 2003); First Amendment to the
    $3,000,000,000 Revolving Credit Agreement and Waiver dated
    as of March 15, 2004 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co- Documentation Agents, Bank of America,
    N.A. and Credit Suisse First Boston, as Co-Syndication Agents
    (Exhibit 10.A.1 to our 2003 First Quarter Form 10-Q);
    Second Waiver to the $3,000,000,000 Revolving Credit
    Agreement dated as of June 15, 2004 among El Paso
    Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
    Company, ANR Pipeline Company and Colorado Interstate Gas
    Company, as Borrowers, the Lenders party thereto and JPMorgan
    Chase Bank, as Administrative Agent, ABN AMRO Bank N.V. and
    Citicorp North America, Inc., as Co-Documentation Agents, Bank
    of America, N.A. and Credit Suisse First Boston, as Co-

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|        |       |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------- | ----- |  | ----------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |            
|Number  |       |  | Description
|        |       |  |            
|        |       |  |             | Syndication Agents (Exhibit 10.A.2 to our 2003 Second
    Quarter Form 10-Q); Second Amendment to the
    $3,000,000,000 Revolving Credit Agreement and Third Waiver
    dated as of August 6, 2004 among El Paso Corporation, El
    Paso Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co-Documentation Agents, Bank of America, N.A.
    and Credit Suisse First Boston, as Co-Syndication Agents.
    (Exhibit 99.B to our Form 8-K filed August 10,
    2004).
|        | 21    |  |             | Omitted pursuant to the reduced disclosure format permitted by
    General Instruction I to Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | *31.A |  |             | Certification of Chief Executive Officer pursuant to
    sec. 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | *31.B |  |             | Certification of Chief Financial Officer pursuant to
    sec. 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | *32.A |  |             | Certification of Chief Executive Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | *32.B |  |             | Certification of Chief Financial Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

Undertaking




48



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##### Table of Contents






SIGNATURES






| |                     
| | --------------------
| | ANR PIPELINE COMPANY



| |    |                           
| | -- | --------------------------
| | By | /s/ John W. Somerhalder II

| |                       
| | ----------------------
| |                       
| | John W. Somerhalder II
| | Chairman of the Board 



|                                                           |  |                                                                                                                         |  |                |  |     
|---------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------- |  | -------------- |  | ----
|                                                           |  | Signature                                                                                                               |  | Title          |  | Date
|                                                           |  |                                                                                                                         |  |                |  |     
|                                                          
|                                                          
|/s/ John W. Somerhalder
    II(John
    W. Somerhalder II) |  | Chairman of the Board and Director
    (Principal Executive Officer)                                                    |  | March 29, 2005
|                                                          
|/s/ Stephen C. Beasley(Stephen
    C. Beasley)             |  | President and Director                                                                                                  |  | March 29, 2005
|                                                          
|/s/ Greg G. Gruber(Greg
    G. Gruber)                     |  | Senior Vice President, Chief Financial Officer, Treasurer and
    Director (Principal Financial and Accounting Officer) |  | March 29, 2005

49



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##### Table of Contents



ANR PIPELINE COMPANY


EXHIBIT INDEX


December 31, 2004




|        |      |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------- | ---- |  | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |  |            
|Number  |      |  | Description
|        |      |  |            
|        | 3.A  |  |             | Amended and Restated Certificate of Incorporation dated
    March 7, 2002 (Exhibit 3.A to our 2001 Form 10-K).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 3.B  |  |             | By-laws dated June 24, 2002 (Exhibit 3.B to our 2002
    Form 10-K).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | *4.A |  |             | Indenture dated as of February 15, 1994 and First
    Supplemental Indenture dated as of February 15, 1994.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 4.B  |  |             | Indenture dated as of March 5, 2003 between ANR Pipeline
    Company and The Bank of New York Trust Company, N.A.,
    successor to The Bank of New York, as Trustee (Exhibit 4.1
    to our Form 8-K filed March 5, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 10.A |  |             | Amended and Restated Credit Agreement dated as of
    November 23, 2004, among El Paso Corporation, ANR Pipeline
    Company, Colorado Interstate Gas Company, El Paso Natural Gas
    Company, Tennessee Gas Pipeline Company, the several banks and
    other financial institutions from time to time parties thereto
    and JPMorgan Chase Bank, N.A., as administrative agent and as
    collateral agent (Exhibit 10.A to our Form 8-K filed
    November 29, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 10.B |  |             | Amended and Restated Security Agreement dated as of
    November 23, 2004, made by among El Paso Corporation, ANR
    Pipeline Company, Colorado Interstate Gas Company, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, the
    Subsidiary Grantors and certain other credit parties thereto and
    JPMorgan Chase Bank, N.A., not in its individual capacity, but
    solely as collateral agent for the Secured Parties and as the
    depository bank (Exhibit 10.B to our Form 8-K filed
    November 29, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10.C |  |             | $3,000,000,000 Revolving Credit Agreement dated as of
    April 16, 2003 among El Paso Corporation, El Paso Natural
    Gas Company, Tennessee Gas Pipeline Company and ANR Pipeline
    Company, as Borrowers, the Lenders Party thereto, and JPMorgan
    Chase Bank, as Administrative Agent, ABN Amro Bank N.V. and
    Citicorp North America, Inc., as Co-Document Agents, Bank of
    America, N.A. and Credit Suisse First Boston, as Co-Syndication
    Agents, J.P. Morgan Securities Inc. and Citigroup Global Markets
    Inc., as Joint Bookrunners and Co-Lead Arrangers.
    (Exhibit 99.1 to El Paso Corporations Form 8-K
    filed April 18, 2003); First Amendment to the
    $3,000,000,000 Revolving Credit Agreement and Waiver dated
    as of March 15, 2004 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co- Documentation Agents, Bank of America,
    N.A. and Credit Suisse First Boston, as Co-Syndication Agents
    (Exhibit 10.A.1 to our 2003 First Quarter Form 10-Q);
    Second Waiver to the $3,000,000,000 Revolving Credit
    Agreement dated as of June 15, 2004 among El Paso
    Corporation, El Paso Natural Gas Company, Tennessee Gas Pipeline
    Company, ANR Pipeline Company and Colorado Interstate Gas
    Company, as Borrowers, the Lenders party thereto and JPMorgan
    Chase Bank, as Administrative Agent, ABN AMRO Bank N.V. and
    Citicorp North America, Inc., as Co-Documentation Agents, Bank
    of America, N.A. and Credit Suisse First Boston, as
    Co-Syndication Agents (Exhibit 10.A.2 to our 2003 Second
    Quarter Form 10-Q); Second Amendment to the
    $3,000,000,000 Revolving Credit Agreement and Third Waiver



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##### Table of Contents



|        |       |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|------- | ----- |  | ----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |            
|Number  |       |  | Description
|        |       |  |            
|        |       |  |             | dated as of August 6, 2004 among El Paso Corporation, El
    Paso Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co-Documentation Agents, Bank of America, N.A.
    and Credit Suisse First Boston, as Co-Syndication Agents.
    (Exhibit 99.B to our Form 8-K filed August 10,
    2004).
|        | 21    |  |             | Omitted pursuant to the reduced disclosure format permitted by
    General Instruction I to Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | *31.A |  |             | Certification of Chief Executive Officer pursuant to
    sec. 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | *31.B |  |             | Certification of Chief Financial Officer pursuant to
    sec. 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | *32.A |  |             | Certification of Chief Executive Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                          
|        | *32.B |  |             | Certification of Chief Financial Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.