Document:

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                                                                   EXHIBIT 10.30

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                              ACQUISITION AGREEMENT

                                  BY AND AMONG

                               U.S. PROPANE, L.P.,
                              U.S. PROPANE, L.L.C.,
               AGL PROPANE SERVICES, INC., AGL ENERGY CORPORATION,
                        UNITED CITIES PROPANE GAS, INC.,
                           TECO PROPANE VENTURES, LLC,
                            PIEDMONT PROPANE COMPANY,

                                       AND

                             LA GRANGE ENERGY, L.P.

                                NOVEMBER 6, 2003

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                                                                  Execution Copy
                                                    Dates as of November 6, 2003
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                                TABLE OF CONTENTS

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ARTICLE I DEFINITIONS............................................................................................     1

   1.1      Definitions..........................................................................................     1

   1.2      Certain Additional Definitions.......................................................................     8

   1.3      Rules of Construction................................................................................     9

ARTICLE II CLOSING...............................................................................................     9

   2.1      Closing..............................................................................................     9

ARTICLE III CLOSING TRANSACTIONS.................................................................................    10

   3.1      Formation of NewLP...................................................................................    10

   3.2      Transfer of Equity Ownership of U.S. Propane.........................................................    10

   3.3      Transfer of Assets and Liabilities to NewLP..........................................................    10

   3.4      Sale and Purchase of U.S. Propane and GP Securities..................................................    14

   3.5      U.S. Propane General Partner Interests...............................................................    14

   3.6      Resignations; Venture Board Rights...................................................................    14

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE VENTURERS.......................................................    15

   4.1      Organization and Existence...........................................................................    16

   4.2      Capitalization of the GP and U.S. Propane............................................................    16

   4.3      Authority............................................................................................    17

   4.4      Noncontravention.....................................................................................    18

   4.5      Governmental Approvals...............................................................................    18

   4.6      Title to Securities..................................................................................    18

   4.7      Subsidiaries; Joint Ventures.........................................................................    19

   4.8      Title to Assets and Properties.......................................................................    19

   4.9      Financial Statements; Absence of Liabilities.........................................................    19

   4.10     Absence of Certain Changes...........................................................................    20

   4.11     Tax Matters..........................................................................................    20

   4.12     Compliance with Laws.................................................................................    22

   4.13     Legal Proceedings....................................................................................    22

   4.14     Sufficiency of Assets and Properties.................................................................    22

   4.15     Intellectual Property................................................................................    22

   4.16     Status as General Partner............................................................................    23
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   4.17     Material Contracts...................................................................................    23

   4.18     Environmental Matters................................................................................    23

   4.19     Insurance............................................................................................    24

   4.20     Books and Records....................................................................................    24

   4.21     Employee Matters.....................................................................................    25

   4.22     ERISA................................................................................................    25

   4.23     Consents.............................................................................................    26

   4.24     Finder's Fees........................................................................................    26

   4.25     Regulation...........................................................................................    26

   4.26     Conduct of Business..................................................................................    26

   4.27     Exemption from Registration..........................................................................    26

   4.28     No Violation.........................................................................................    26

   4.29     SEC Filings..........................................................................................    27

ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE ACQUIRER.........................................................    27

   5.1      Organization; Power and Authority....................................................................    27

   5.2      Noncontravention.....................................................................................    27

   5.3      Investment Intent....................................................................................    27

   5.4      Brokers..............................................................................................    28

   5.5      Representations Regarding Funding....................................................................    28

ARTICLE VI APPROVALS, AUTHORIZATIONS AND CONSENTS................................................................    28

   6.1      Consent of the GP, U.S. Propane and the Venturers....................................................    28

   6.2      Authorizations and Consents..........................................................................    28

   6.3      Further Assurances...................................................................................    29

ARTICLE VII ADDITIONAL AGREEMENTS................................................................................    30

   7.1      Access to Information................................................................................    30

   7.2      Maintenance of Books and Records; Financial Statements; Reports; Etc.................................    30

   7.3      Public Announcements.................................................................................    30

   7.4      Conduct and Preservation of the Business of the GP, U.S. Propane and Other Entities..................    31

   7.5      Restrictions on Certain Actions of the GP, U.S. Propane and Other Entities...........................    31

   7.6      Updating Schedules...................................................................................    33

   7.7      Tax Reporting........................................................................................    33

   7.8      Fees and Expenses....................................................................................    35

   7.9      Actions by Parties...................................................................................    35
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   7.10     Employees of U.S. Propane............................................................................    35

   7.11     Third Party Beneficiary..............................................................................    35

   7.12     Confidentiality and Tax Shelter Regulations..........................................................    35

   7.13     Trademarks, Logos, Etc...............................................................................    35

   7.14     Vote of Common Units.................................................................................    36

ARTICLE VIII CONDITIONS TO CLOSING...............................................................................    36

   8.1      Conditions to Closing of the Acquirer................................................................    36

   8.2      Conditions to Closing of NewLP and the Venturers.....................................................    38

ARTICLE IX TERMINATION, AMENDMENT AND WAIVER.....................................................................    39

   9.1      Termination..........................................................................................    39

   9.2      Effect of Termination................................................................................    40

   9.3      Amendment............................................................................................    41

   9.4      Waiver...............................................................................................    41

ARTICLE X INDEMNIFICATION; SURVIVAL OF REPRESENTATIONS...........................................................    41

   10.1     Indemnification Obligations of NewLP and the Venturers...............................................    41

   10.2     Indemnification Obligations of the Acquirer..........................................................    42

   10.3     Indemnification Procedures...........................................................................    43

   10.4     Survival.............................................................................................    44

   10.5     No Special or Consequential Damages..................................................................    45

   10.6     Limitations on Indemnification.......................................................................    45

ARTICLE XI MISCELLANEOUS.........................................................................................    46

   11.1     Notices..............................................................................................    46

   11.2     Entire Agreement.....................................................................................    48

   11.3     Binding Effect; Assignment; No Third Party Benefit...................................................    48

   11.4     Severability.........................................................................................    48

   11.5     Governing Law........................................................................................    48

   11.6     Jurisdiction.........................................................................................    48

   11.7     Further Assurances...................................................................................    49

   11.8     Descriptive Headings.................................................................................    49

   11.9     Counterparts.........................................................................................    49
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                                     -iii-

<PAGE>

                              ACQUISITION AGREEMENT

         This ACQUISITION AGREEMENT (as amended, supplemented or otherwise
modified from time to time in accordance with the terms hereof, this
"Agreement"), dated as of November 6, 2003, is made and entered into, by and
among U.S. Propane, L.P., a Delaware limited partnership ("U.S. Propane"), U.S.
Propane, L.L.C., a Delaware limited liability company (the "GP"), AGL Propane
Services, Inc. and AGL Energy Corporation, each a Delaware corporation
(collectively, "AGL"), United Cities Propane Gas, Inc., a Tennessee corporation
("Atmos"), TECO Propane Ventures, LLC, a Delaware limited liability company
("TECO"), and Piedmont Propane Company, a North Carolina corporation
("Piedmont") (each of AGL, Atmos, TECO and Piedmont, a "Venturer" and
collectively, the "Venturers"), and La Grange Energy, L.P., a Texas limited
partnership (the "Acquirer").

                                    RECITALS:

         A.       The Venturers own all of the outstanding member interests in
the GP and all of the outstanding limited partner interests in U.S. Propane.

         B.       The parties desire to enter into a series of transactions
whereby Acquirer will become the sole member of the GP and the sole limited
partner of U.S. Propane, as more fully described in this Agreement.

         C.       In consideration of the mutual covenants and agreements set
forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

                                   ARTICLE I
                                   DEFINITIONS

         1.1 DEFINITIONS. As used in this Agreement, the following defined terms
shall have the meanings indicated below:

         "Acquirer Indemnified Parties" means the Acquirer and its Affiliates,
and their respective managers, directors, officers, members, employees and
representatives (in each case in their respective capacity as such).

         "Affiliate" means, with respect to a Person, (a) any other Person more
than 50 percent of whose outstanding voting securities are directly or
indirectly owned, controlled or held with the power to vote by such Person and
(b) any other Person directly or indirectly controlling, controlled by or under
common control with such Person. The term "controls" (and the variants thereof)
as used in this definition means the possession of the power, acting alone, to
direct or cause the direction of the management and policies of a Person by
virtue of ownership of voting securities or otherwise.

         "Applicable Law" means any Law to which a specified Person or property
is subject.

         "Assets and Properties" means, with respect to any Person, all assets
and properties of every kind, nature, character and description (whether real,
personal or mixed, whether tangible

<PAGE>

or intangible, whether absolute, accrued, contingent, fixed or otherwise and
wherever situated), including the goodwill related thereto, operated, owned or
leased by such Person, including cash, cash equivalents, securities and
investments, accounts and notes receivable, chattel paper, documents,
instruments, contracts, general intangibles, real estate, equipment, inventory
and goods.

         "Benefit Plan(s)" means any Pension Plan, Welfare Plan, bonus, deferred
compensation, incentive compensation, stock ownership, stock purchase, stock
option, phantom stock, retirement, vacation, severance, disability, death
benefit, hospitalization, medical, dependent care, cafeteria, employee
assistance, scholarship or other plan, program, arrangement or understanding
(whether or not covered under 3(3) of ERISA and whether or not legally binding)
maintained in whole or in part, contributed to, or required to be contributed to
by U.S. Propane or GP for the benefit of any present or former officer, employee
or director of U.S. Propane or GP.

         "Business Day" means a day other than Saturday, Sunday or any day on
which banks located in the State of Texas or Oklahoma are authorized or
obligated to close.

         "Code" means the Internal Revenue Code of 1986, as amended and in
effect from time to time. Any reference herein to a specific section or sections
of the Code shall be deemed to include a reference to a corresponding provision
of any successor law.

         "Common Unit" means a Common Unit as defined in the Heritage MLP
Partnership Agreement.

         "Contract" means any agreement, contract, obligation, promise, or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

         "Contribution Agreement" means that certain Contribution Agreement,
dated as of November 6, 2003, by and among Heritage MLP, U.S. Propane and the
Acquirer.

         "Current Assets" shall have the meaning assigned to such term and shall
be calculated in accordance with Exhibit 1.1(e).

         "Current Liabilities" shall have the meaning assigned to such term and
shall be calculated in accordance with Exhibit 1.1(f).

         "DRULPA" means the Delaware Revised Uniform Limited Partnership Act, as
amended and in effect from time to time. Any reference to a specific section or
sections of DRULPA shall be deemed to include a reference to a corresponding
provision of any successor law.

         "Encumbrance" means any security interest, lien, pledge, claim, charge,
escrow, encumbrance, option, right of first offer, right of first refusal,
preemptive right, mortgage, indenture, security agreement or other similar
agreement, arrangement, contract, commitment, understanding or obligation,
whether written or oral and whether or not relating in any way to credit or the
borrowing of money.

                                       2

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         "ERISA" shall mean the Employee Retirement Income Security Act of 1974
(or any successor legislation thereto), as amended from time to time and any
regulations promulgated thereunder.

         "ERISA Affiliate" shall mean, with respect to the GP and U.S. Propane,
any trade or business (whether or not incorporated) under common control with
the GP or U.S. Propane and which, together with the GP or U.S. Propane, are
treated as a single employer within the meaning of Sections 414(b) or (c) of the
Code, excluding the Venturers and the Acquirer and each other Person that would
not be an ERISA Affiliate if the Acquirer did not own any issued and outstanding
Securities of the GP or U.S. Propane.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the SEC promulgated thereunder.

         "GAAP" means generally accepted accounting principles as in effect in
the United States of America on the applicable date.

         "General Partner Status Liability" means a Liability arising pursuant
to Section 17-403(b) of DRULPA on account of a person's status as the general
partner of a limited partnership, but excluding any Liability existing as of the
Closing Date and arising on account of such status on or prior to the Closing
Date by virtue of Section 17-403(d)(3) and (5) of the DRULPA; provided, however,
that exclusion of any Liability that may arise on account of such status by
virtue of Section 17-403(d)(3) and (5) of DRULPA shall not exclude from the
General Partner Status Liability any Retained Liabilities described in Sections
3.3(c)(iv) through (ix).

         "Governmental Authority" means a federal, state, local or foreign
governmental authority; a state, province, commonwealth, territory or district
thereof; a county or parish; a city, town, township, village or other
municipality; a district, ward or other subdivision of any of the foregoing; any
executive, legislative or other governing body of any of the foregoing; any
agency, authority, board, department, system, service, office, commission,
committee, council or other administrative body of any of the foregoing; any
court or other judicial body; and any officer, official or other representative
of any of the foregoing.

         "Heritage Entities" means Heritage MLP, Heritage OLP and the following
entities: M-P Oils, Ltd., an Alberta, Canada, corporation, Heritage-Bi State,
L.L.C., a Delaware limited liability company, Heritage Energy Resources, L.L.C.,
an Oklahoma limited liability company, Heritage Service Corp., a Delaware
corporation, 902 Gilbert Street, LLC, a North Carolina limited liability
company, EarthAmerica, L.L.C., a Delaware limited liability company,
EarthAmerica GP, L.L.C., a Delaware limited liability company, and EarthAmerica
of Texas, L.P., a Texas limited partnership.

         "Heritage MLP" means Heritage Propane Partners, L.P., a Delaware
limited partnership.

         "Heritage MLP Partnership Agreement" means the Amended and Restated
Agreement of Limited Partnership of Heritage MLP dated as of June 27, 1996, as
amended or supplemented and in effect as of the date hereof.

         "Heritage OLP" means Heritage Operating, L.P., a Delaware limited
partnership.

                                       3

<PAGE>

         "Heritage OLP Partnership Agreement" means the Amended and Restated
Agreement of Limited Partnership of Heritage OLP dated as of June 27, 1996, as
amended or supplemented and in effect as of the date hereof.

         "HHI" means Heritage Holdings, Inc., a Delaware corporation.

         "HHI Purchase Agreement" means that certain Stock Purchase Agreement,
dated as of November 6, 2003, among Heritage MLP and the Venturers relating to
the purchase by Heritage MLP of all of the capital stock of HHI.

         "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended.

         "Incentive Distribution Right" means an Incentive Distribution Right as
defined in the Heritage MLP Partnership Agreement.

         "Indebtedness" means (a) all indebtedness of the GP and U.S. Propane,
including the principal of, and premium, if any, and interest (including
interest accruing after the filing of a petition initiating any proceeding under
any federal or state bankruptcy laws, whether or not allowable as a claim in
such proceeding) on, all indebtedness, whether outstanding as of the date of
this Agreement or hereafter created (i) for borrowed money, (ii) for money
borrowed by others and guaranteed, directly or indirectly, by the GP or U.S.
Propane (excluding indebtedness of Heritage MLP, Heritage OLP or any of their
subsidiaries that has not been guaranteed directly by the GP or U.S. Propane but
for which the GP or U.S. Propane may have liability under applicable state law
in respect of such entity's capacity as, in the case of U.S. Propane, the
general partner of Heritage MLP or Heritage OLP and, in the case of the GP, the
general partner of U.S. Propane), (iii) for money borrowed by others for which
the GP or U.S. Propane provides security, (iv) constituting purchase money
indebtedness the payment of which the GP or U.S. Propane is directly or
contingently liable (excluding indebtedness of Heritage MLP, Heritage OLP or any
of their subsidiaries that has not been guaranteed directly by the GP or U.S.
Propane but for which the GP or U.S. Propane may have liability under applicable
state law in respect of such entity's capacity as, in the case of U.S. Propane,
the general partner of Heritage MLP or Heritage OLP and, in the case of the GP,
the general partner of U.S. Propane), (v) under any lease of any real or
personal property, which obligations are capitalized on the books of the GP or
U.S. Propane in accordance with GAAP or (vi) under any other arrangement under
which obligations are recorded as indebtedness on the books of the GP or U.S.
Propane in accordance with GAAP and (b) any modifications, refundings,
deferrals, renewals or extensions of any such Indebtedness, or securities, notes
or other evidences of indebtedness issued in exchange for such Indebtedness.

         "IRS" means the Internal Revenue Service.

         "Knowledge" means, with respect to each of the Venturers, the actual
knowledge of the Persons specified in Exhibit 1.1(a) hereto, after making
appropriate inquiry. As used herein, the Parties agree that appropriate inquiry
by the Venturers shall mean inquiring of the following executive officers of
U.S. Propane: president, chief executive officer, chief operating officer,

                                       4

<PAGE>

chief financial officer, treasurer, vice president - corporate development, and
vice president(s) for the southern, northern and western operations.

         "Law" means any applicable constitutional provision, statute, act, code
(including the Code), law, regulation, rule, ordinance, order, decree, ruling,
proclamation, resolution, judgment, decision, declaration, or interpretative or
advisory opinion or letter of a Governmental Authority having valid
jurisdiction.

         "Legal Expenses" means the reasonable out-of-pocket fees, costs and
expenses of any kind incurred by any Person entitled to indemnification pursuant
to Article 10 in investigating, preparing for, defending against, providing
evidence, producing documents or taking other action with respect to any claim
as to which such person is entitled to indemnification pursuant to Article 10.

         "Liabilities" means all Indebtedness, obligations and other liabilities
(or contingencies that have not yet become liabilities but which, after the
passage of time, the occurrence of some event or a combination of same, will
become a liability) of a Person, whether absolute, accrued, contingent (or based
upon any contingency), known or unknown, unliquidated, fixed or otherwise, or
whether due or to become due.

         "Losses" means losses, damages, liabilities, claims, costs and expenses
(including, without limitation, related Legal Expenses), but excluding lost
profits or special, consequential, exemplary or punitive damages.

         "Material Adverse Effect" means material adverse effect on (i) the
financial condition, business, properties, net worth, prospects or results of
operations of the GP and U.S. Propane, taken as a whole, including any condition
(other than any condition resulting from general economic conditions or weather,
seasonality or other conditions that may affect the industry of the Heritage
Entities and their Subsidiaries generally) affecting Heritage MLP that would be
reasonably likely to reduce amounts to be distributed under the Incentive
Distribution Rights, (ii) the ability of any Person to consummate the
transactions contemplated by this Agreement and the Operative Documents or (iii)
the legality, validity or enforceability of this Agreement and the other
Operative Documents.

         "Material Contracts" means (i) the Heritage MLP Partnership Agreement,
(ii) the Heritage OLP Partnership Agreement, (iii) all Contracts of the GP and
U.S. Propane which involve aggregate payments over the term of each such
Contract by or to the GP or U.S. Propane of more than $20,000 or which extend
for a term of more than one year from the date hereof and are not cancelable
upon 60 days' or less advance notice without penalty, (iv) all loan agreements,
bank lines or credit agreements, indentures, mortgages, deeds of trust, pledge
and security agreements, letters of credit or other debt instruments to which
the GP or U.S. Propane is a party, (v) all employment contracts to which the GP
or U.S. Propane is a party, (vi) any guarantees by the GP or U.S. Propane, (vii)
all non competition and other similar agreements to which the GP or U.S. Propane
is a party and (viii) all other material contracts of the GP and U.S. Propane.

         "Member Interests" means the member interests in the GP, which member
interests constitute all of the issued and outstanding member interests of the
GP.

                                       5

<PAGE>

         "Multiemployer Plan" shall mean a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA, and to which the GP or U.S. Propane is making, is
obligated to make, has made or been obligated to make, contributions on behalf
of participants who are or were employed by any of them.

         "Noncompetition Agreement" means the Noncompetition Agreement to be
entered into at the Closing among AGL Resources Inc., AGL, Atmos Energy
Corporation, Atmos, TECO Energy, Inc., TECO, Piedmont Natural Gas Company, Inc.,
Piedmont and U.S. Propane, in substantially the form attached as Exhibit 1.1(c).

         "Operative Documents" means this Agreement, the Contribution Agreement,
the Noncompetition Agreement, the Unitholder Rights Agreement, a release of U.S.
Propane and the GP from all obligations under the HHI Note, and all other
agreements to be executed and delivered pursuant to this Agreement between the
GP, U.S. Propane, NewLP or one or more Venturers or their Affiliates, on the one
hand, and the Acquirer or one or more of its Affiliates, on the other hand, as
modified or amended from time to time.

         "Original Formation Agreements" means (i) the Amended and Restated
Formation Agreement, dated effective as of June 15, 2000 (the "Formation
Agreement"), by and among AGL Resources Inc., AGL Investments, Inc., AGL, Atmos
Energy Corporation, Atmos Propane, Inc., Atmos, Teco Energy, Inc., TECO,
Piedmont Natural Gas Company, Inc., PNG Energy Company, Piedmont, U.S. Propane
and the GP, (ii) the GP LLC Agreement, (iii) the U.S. Propane Agreement, (iv)
the Transfer Restriction Agreement, dated as of August 10, 2000 (the "Transfer
Restriction Agreement"), among the parties to the Formation Agreement (other
than Atmos Propane, Inc.), (v) the Collateral Agent Agreement, dated as of
August 10, 2000, between U.S. Propane and the Secured Parties named therein,
(vi) the NonCompetition Agreement, among the parties to the Formation Agreement
(other than Atmos Propane, Inc.), (vii) the Contribution Agreement, dated as of
June 15, 2000, as amended, by and among U.S. Propane, Heritage OLP and Heritage
MLP (the "Original Contribution Agreement"), (viii) the Indemnification
Agreement, dated as of August 10, 2000, between U.S. Propane and HHI (the
"Original Indemnification Agreement"), (ix) the Indemnification Agreement, dated
as of February 4, 2002, between HHI and U.S. Propane (the "Replacement
Indemnification Agreement", (x) the Conveyance and Assignment Agreement, dated
as of August 10, 2000, between U.S. Propane and Heritage OLP, (xi) the Stock
Purchase Agreement, dated as of June 15, 2000 among U.S. Propane, the Heritage
GP Stockholders (as defined therein) and FHS Investments, L.L.C. (the "Stock
Purchase Agreement"), and (xii) the Subscription Agreement, dated as of June 15,
2000, as amended, among Heritage MLP and the parties to the Stock Purchase
Agreement (other than U.S. Propane and FHS Investments, L.L.C.).

         "Organization State" means, as applied to (i) any corporation, its
state or other jurisdiction of incorporation, (ii) any limited liability company
or limited partnership, the state or other jurisdiction under whose laws it is
formed, organized and existing in that legal form, and (iii) any other entity,
the state or other jurisdiction whose laws govern that entity's internal
affairs.

         "Partner Interests" means the limited partner interests in U.S.
Propane, which limited partner interests constitute 99.99% of the outstanding
partner interests of U.S. Propane.

                                       6

<PAGE>

         "Pension Plan(s)" means any "employee pension benefit plan" as such
term is defined in Section 3(1) of ERISA that is or was sponsored by U.S.
Propane, or GP, or to which U.S. Propane or GP is or was obligated to
contribute.

         "Permits" means licenses, permits, franchises, consents, approvals,
variances, exemptions and other authorizations of or from Governmental
Authorities.

         "Permitted Encumbrances" with respect to the GP, U.S. Propane, NewLP or
any of their respective Subsidiaries, means (a) the Encumbrances set forth in
the Schedules to this Agreement, and specifically identified as such, (b) liens
for Taxes not yet due and payable or the validity of which is being contested in
good faith by appropriate legal proceedings and for which adequate reserves have
been set aside, (c) statutory liens (including materialmen's, mechanic's,
repairmen's, landlord's and other similar liens) arising in connection with the
ordinary course of business securing payments not yet due and payable or, if due
and payable, the validity of which is being contested in good faith by
appropriate legal proceedings and for which adequate reserves have been set
aside, and (d) such imperfections or irregularities of title, if any, as (i) are
not substantial in character, amount or extent and do not materially detract
from the value of the property subject thereto, (ii) do not materially interfere
with either the present or intended use of such property and (iii) do not,
individually or in the aggregate, materially interfere with the conduct of the
business of the GP, U.S. Propane, NewLP or any of their respective Subsidiaries.

         "Person" means any individual, corporation, firm, partnership, limited
partnership, limited liability company, joint venture, association, joint-stock
company, trust, enterprise, other entity, unincorporated association or
Governmental Authority.

         "Proceedings" means all proceedings, actions, claims, suits,
investigations and inquiries by or before any arbitrator or Governmental
Authority.

         "SEC" means the United States Securities and Exchange Commission.

         "SEC Filings" means all forms, reports, schedules, statements and other
documents (including all amendments thereto) filed with the SEC by Heritage MLP
since January 1, 2000 under the Securities Act and the rules and regulations
promulgated thereunder or the Exchange Act and the rules and regulations
promulgated thereunder.

         "Securities" means, collectively, the Member Interests and the Partner
Interests.

         "Securities Act" means the Securities Act of 1933, as amended, of the
United States of America and the rules and regulations of the SEC promulgated
thereunder.

         "Subsidiary" means as to any Person, (a) any corporation more than 50
percent of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(excluding stock of any class or classes of such corporation that might have
voting power by reason of the happening of any contingency) is at the time owned
by such Person and/or one or more Subsidiaries of such Person and (b) any
partnership, limited partnership, limited liability company, joint venture,
association, joint-stock company, trust, enterprise, other entity or
unincorporated association in which such Person

                                       7

<PAGE>

and/or one or more Subsidiaries of such Person has more than a 50 percent equity
interest at the time.

         "Tax Return" means any return or report, including any related or
supporting information, with respect to Taxes.

         "Taxes" means any income taxes or similar assessments or any sales,
gross receipts, excise, occupation, use, ad valorem, property, production,
severance, transportation, employment, payroll, franchise or other tax imposed
by any United States federal, state or local (or any foreign or provincial)
taxing authority, including any interest, penalties or additions attributable
thereto.

         "Transfer" means, directly or indirectly, any sale, transfer,
assignment, hypothecation, pledge or other disposition of any of the Securities
or any interests therein.

          "Unitholder Rights Agreement" means that certain Unitholder Rights
Agreement to be entered into at the Closing among HHI, NewLP, Acquirer and
Heritage MLP, substantially in the form of Exhibit 1.1(d) hereto.

         "U.S. Propane Business" means all of the business activities of the GP
and U.S. Propane as currently conducted.

         "Venturer Indemnified Parties" means NewLP and the Venturers, and their
respective Affiliates, managers, directors, officers, members, employees and
representatives, in each case in their respective capacity as such.

         "Welfare Plan(s)" means any "employee welfare benefit plan" as such
term is defined in Section 3(1) of ERISA that is or was sponsored by U.S.
Propane or the GP, or to which U.S. Propane or the GP was obligated to
contribute.

         1.2 CERTAIN ADDITIONAL DEFINITIONS. In addition to such terms as are
defined in Section 1.1, the following terms are used in ----------- this
Agreement and defined in the Sections set forth opposite such terms:

<TABLE>
<CAPTION>
DEFINED TERM                                                      SECTION REFERENCE
------------                                                      -----------------
<S>                                                               <C>
Acquirer.................................................         Preamble
AGL......................................................         Preamble
Agreement................................................         Preamble
Applicable Environmental Laws............................         4.18(a)
Assumed Liabilities......................................         3.3(b)
Atmos....................................................         Preamble
August Financial Statements..............................         4.9(a)
CERCLA...................................................         4.18(a)
Closing..................................................         2.1
Closing Date.............................................         2.1
Financial Statements.....................................         4.9(a)
Financial Statement Date.................................         4.9(a)
</TABLE>

                                       8

<PAGE>

<TABLE>
<S>                                                               <C>
GP.......................................................         Preamble
GP Interests Note........................................         3.13(f)
GP LLC Agreement.........................................         4.2(a)
Hazardous Substance......................................         4.18(c)
HHI Conveyances..........................................         3.3(a)
HHI Note.................................................         3.3(b)(iii)
Indemnified Party........................................         10.3(a)
MLP Note.................................................         3.6(b)
Indemnifying Party.......................................         10.3(a)
NewGP....................................................         3.1
NewLP....................................................         3.1
NewLP Assets.............................................         3.3(b)
Piedmont.................................................         Preamble
Post-Signing Events......................................         7.6
Pre-Signing Events.......................................         7.6
Purchase Price...........................................         3.4
RCRA.....................................................         4.18(a)
Retained Assets..........................................         3.3(a)
Retained Liabilities.....................................         3.3(c)
Solid Waste..............................................         4.18(c)
TECO.....................................................         Preamble
Third Party Action.......................................         10.3(a)
Transfer Instruments.....................................         3.3(e)
U.S. Propane.............................................         Preamble
U.S. Propane Agreement...................................         4.2(a)
Venturer Board Member....................................         3.6(b)
Venturers................................................         Preamble
WARN.....................................................         7.10
</TABLE>

         1.3 RULES OF CONSTRUCTION. Unless the context otherwise requires, (a)
the gender (or lack of gender) of all words used in this Agreement includes the
masculine, feminine and neuter; (b) the term "include" or "includes" means
"includes, without limitation", and "including" means "including, without
limitation"; references to Articles and Sections refers to Articles and Sections
of this Agreement; (c) references to Exhibits or Schedules refer to the Exhibits
and Schedules attached to this Agreement, which are made a part hereof for all
purposes; (d) references to Laws refer to such Laws as they may be amended from
time to time, and references to particular provisions of a Law include any
corresponding provisions of any succeeding Law; and (e) references to money
refer to legal currency of the United States of America.

                                   ARTICLE II
                                     CLOSING

         2.1 CLOSING. Subject to the terms and conditions hereof, the closing
(the "Closing") of the transactions described in Article 3 will take place at
the time and place provided for in the Contribution Agreement on the third
Business Day following the date on which the last of the conditions to Closing
set forth in Sections 8.1 and 8.2 have been satisfied or waived by the party

                                       9

<PAGE>

or parties entitled to waive the same (the date and time of the Closing are
herein referred to as the "Closing Date"). At the Closing, there shall be
delivered the opinions, certificates and other agreements, documents and
instruments to be delivered under Article 8. Except for purposes of Article 3,
all Closing transactions will be deemed to have occurred simultaneously.

                                  ARTICLE III
                              CLOSING TRANSACTIONS

         3.1 FORMATION OF NEWLP. Prior to the Closing, the Venturers shall form
NewGP ("NewGP"), which the Venturers will own in the same relative percentages
as their existing ownership of the GP as set forth on Exhibit 3.1. Prior to the
Closing, the Venturers and NewGP shall also form NewLP ("NewLP"), which the
Venturers and NewGP will own in the same relative percentages as the existing
ownership of U.S. Propane and the GP, respectively, as set forth on Exhibit 3.1.

         3.2 TRANSFER OF EQUITY OWNERSHIP OF U.S. PROPANE. Immediately prior to
the transactions described in Section 3.3, the declaration by HHI of the
dividend described in Section 6.13(a) of the HHI Purchase Agreement and the
declaration and payment by HHI of the dividend described in Section 6.13(b) of
the HHI Purchase Agreement (a) the Venturers will assign, transfer and convey
all of their respective Member Interests in the GP to NewGP and (b) NewGP and
the Venturers will assign, transfer and convey all of their Member Interests in
the GP and all of their Partner Interests in U.S. Propane to NewLP. As a
consequence of the transactions described in this Section 3.2, (i) NewLP will
become the sole member of the GP (which is the sole general partner of U.S.
Propane) and the sole limited partner of U.S. Propane, and (ii) the Venturers
shall cease to have any direct member interest or limited partner interest in
the GP or U.S. Propane, including any rights to receive distributions directly
from the GP or U.S. Propane.

         3.3 TRANSFER OF ASSETS AND LIABILITIES TO NEWLP.

         (a) Immediately prior to the Closing, U.S. Propane will distribute,
assign, transfer, deliver and convey, without consideration, to NewLP, and NewLP
will accept, all of the Assets and Properties of U.S. Propane, including all of
the stock of HHI, all rights and obligations of U.S. Propane under the Original
Formation Agreements (other than the agreements referred to in clauses (ii),
(iii), (viii), (ix) and (xi) of the definition of Original Formation
Agreements), all obligations (but not the rights) of U.S. Propane under the
Original Contribution Agreement) and the 180,028 common units of Heritage MLP
that are owned by U.S. Propane, but save and except for the following
(collectively, the "Retained Assets"): (i) U.S. Propane's right to serve as the
general partner of Heritage MLP and Heritage OLP, including all rights to
exercise the rights and powers conferred upon U.S. Propane as a general partner
pursuant to the Heritage MLP Partnership Agreement and the agreement of limited
partnership of Heritage OLP, (ii) all Current Assets of U.S. Propane up to the
amount of Current Liabilities of U.S. Propane, and cash balances held in the
escrow accounts at Bank of Oklahoma, National Association in respect of
non-compete payments owed under non-compete agreements entered into in
connection with acquisitions by or on behalf of Heritage MLP, (iii) a one
percent right to all allocations of income, gain, loss, deduction and credit
from, the associated capital account balance of, and all associated
distributions from, Heritage MLP, (iv) a 1.0101% percent right to all
allocations of income, gain, loss, deduction and credit from, the associated
capital account balance of, and all

                                       10

<PAGE>

associated distributions from, Heritage OLP, (v) the Incentive Distribution
Rights, (vi) the rights and obligations of U.S. Propane under the agreements
referred to in clauses (ii), (iii), (viii), (ix) and (xi) of the definition of
Original Formation Agreements, (vii) all rights (but not the obligations) of
U.S. Propane under the Original Contribution Agreement and all rights and
obligations of U.S. Propane under (A) this Agreement and the Operative Documents
to the extent arising after the Closing or (B) the Contribution Agreement,
(viii) all rights of the GP or U.S. Propane resulting from or relating to any
employment agreement or the employment relationship with present or former
employees or independent contractors (other than independent contractors engaged
for the purpose of representing the Venturers in connection with the
transactions contemplated by this Agreement) of the GP or U.S. Propane, to the
extent arising from the activities of such independent contractors on behalf of
the Heritage Entities, (ix) all rights of the GP or U.S. Propane under any
agreement, trust, plan, fund or other arrangement (whether pursuant to ERISA or
otherwise) under which benefits are, or employment is, provided for present or
former employees or independent contractors of the GP or U.S. Propane
(including, without limitation, all rights of the GP or U.S. Propane under the
employment agreements referred to in Section 8.1(j) hereof), (x) any rights to
reimbursements from any Heritage Entities for Retained Liabilities, and (xi)
those certain assets related to the operations of Heritage MLP and Heritage OLP
conducted by HHI that were assigned and conveyed by HHI to U.S. Propane pursuant
to that certain Assignment, Conveyance and Assumption Agreement (HPP) and that
certain Assignment, Conveyance and Assumption Agreement (Operating), each dated
as of February 4, 2002 (the "HHI Conveyances"). The Assets and Properties of
U.S. Propane to be contributed or transferred to NewLP pursuant to this Section
3.3(a) are referred to herein collectively as the "NewLP Assets."

         (b) Immediately prior to the Closing, NewLP will assume all Liabilities
of U.S. Propane and of the GP that exist immediately prior to the Closing
(whether or not known to U.S. Propane, the GP or the Venturers), except as set
forth in Section 3.3(c) (collectively, the "Assumed Liabilities"). Without
limiting the generality of the foregoing, and except as set forth in Section
3.3(c), the Assumed Liabilities include the following:

                           (i)      all Liabilities of the GP or U.S. Propane
                  that arise directly on account of any of the NewLP Assets;

                           (ii)     any Liability of the GP or U.S. Propane
                  existing at or arising after the date hereof under any leases,
                  contracts, agreements or permits included in the NewLP Assets,
                  including any indemnification obligations of U.S. Propane to
                  Heritage OLP or Heritage MLP pursuant to the Original
                  Contribution Agreement;

                           (iii)    any Liability of the GP or U.S. Propane
                  arising under any Indebtedness (other than any such Liability
                  that may arise under the Original Indemnification Agreement
                  and excluding any General Partner Status Liability), including
                  all obligations in respect of that certain $11,538,944.36
                  promissory note payable by U.S. Propane to HHI (the "HHI
                  Note");

                           (iv)     any Liability or deficiency of the GP or
                  U.S. Propane for any Taxes, to the extent applicable to
                  periods (or portions thereof) ending on or prior to the
                  Closing Date;

                                       11

<PAGE>

                           (v)      all Liabilities of the GP or U.S. Propane to
                  the extent arising from actions or inactions by the GP or U.S.
                  Propane prior to the Closing and resulting from, caused by or
                  arising out of or imposed pursuant to, the violation of any
                  Applicable Law, including any Environmental Law (excluding any
                  General Partner Status Liability of the GP or U.S. Propane
                  existing solely as a result of their respective status as the
                  general partner of U.S. Propane (in the case of the GP) or
                  Heritage MLP or Heritage OLP (in the case of U.S. Propane));

                           (vi)     all fees and expenses incurred or to be
                  incurred by the GP (to the extent relating to the period prior
                  to the Closing), U.S. Propane (to the extent relating to the
                  period prior to the Closing), NewLP or the Venturers or their
                  Affiliates in connection with the negotiation, execution,
                  delivery and performance of this Agreement and the other
                  Operative Documents, including investment banking fees, legal
                  fees or similar transaction costs, but excluding any payments
                  due under any change in control provisions to which any of the
                  GP, U.S.Propane or any of the Heritage Entities is a party;
                  and

                           (vii)    all Liabilities of the GP or U.S. Propane to
                  make reimbursements or make payments of indemnification of any
                  kind to any person with respect to any of the Assumed
                  Liabilities.

         (c) Notwithstanding Section 3.3(b), (i) U.S. Propane will retain all
General Partner Status Liabilities of U.S. Propane existing as of the Closing
Date solely as a result of its status as the general partner of Heritage MLP or
Heritage OLP, (ii) the GP will retain all General Partner Status Liabilities of
the GP existing as of the Closing Date solely as a result of its status as the
general partner of U.S. Propane (and not any other partnership), (iii) U.S.
Propane and the GP will retain all General Partner Status Liabilities relating
to the service or status of U.S. Propane as the general partner of Heritage MLP
and Heritage OLP for all periods on and after the Closing Date, (iv) U.S.
Propane and the GP will retain all Liabilities resulting from or relating to any
employment agreement or relationship with current or former employees, or
independent contractor relationship, of U.S. Propane or the GP or the
termination of any such relationship, including, but not limited to, any
severance pay or other similar benefits, whether accrued or accruing, and any
claims filed or that may be filed by or on behalf of any such present or former
employee or independent contractor relating to the employment or termination of
employment or services by U.S. Propane or the GP of any such person, including
any claim for wrongful discharge, breach of contract, unfair labor practice,
employment discrimination, unemployment compensation, or workers' compensation;
and any liability in respect of noncompete payments owed under noncompete
agreements entered into in connection with prior acquisitions by or on behalf of
Heritage MLP; provided, however, that this subsection (iv) shall not apply to
any Liabilities owed to or on account of independent contractors engaged for the
purpose of representing the Venturers in connection with the transactions
contemplated by this Agreement or independent contractors not engaged to render
activities on behalf of the Heritage Entities, (v) U.S. Propane and the GP will
retain all Liabilities relating to any Benefit Plan, (vi) U.S. Propane and the
GP will retain all Liabilities of the GP or U.S. Propane under (A) this
Agreement or the other Operative Documents (other than the Contribution
Agreement) arising after the Closing, (B) the Contribution Agreement or (C) the
agreements referred to in clauses (ii), (iii), (viii), (ix) and (xi) of the
definition of Original Formation Agreements, (vii) U.S.

                                       12

<PAGE>

Propane and the GP will retain all Liabilities resulting from or relating to the
obligation to provide healthcare continuation coverage under Section 4980B of
the Code to any covered employee or qualified beneficiary (as such terms are
defined in Section 4980(f) of the Code) occurring prior to, on or after the
transactions contemplated by this Agreement, (viii) U.S. Propane and the GP will
retain all Liabilities pursuant to the HHI Conveyances and (ix) U.S. Propane and
the GP will retain all Liabilities of U.S. Propane or the GP in respect of
non-compete obligations to third parties for which the escrow amounts referred
to in Section 3.3(a)(ii) are held (the "Retained Liabilities").

         (d) It is the intention of the parties that immediately following the
assumption of the Assumed Liabilities by NewLP, neither U.S. Propane nor the GP
will have any liability or responsibility for any Liabilities of U.S. Propane or
the GP other than the Retained Liabilities, and such Assumed Liabilities and
Retained Liabilities will be the subject of the indemnity of NewLP and the
Venturers (with respect to the Assumed Liabilities) and U.S. Propane and
Acquirer (with respect to Retained Liabilities) as and to the extent provided in
Section 10.1 and Section 10.2. It is the further intention of the parties that
the characterization of Liabilities as Assumed Liabilities or Retained
Liabilities, respectively, will not diminish any right of the Venturer
Indemnified Parties to receive indemnification for Losses pursuant to Section
10.2 or any right of the Acquirer Indemnified Parties to receive indemnification
for Losses pursuant to Section 10.1 for a breach of a representation or warranty
contained in this Agreement pertaining to Assumed Liabilities or Retained
Liabilities, respectively.

         (e) In order to effect the transfers of the assets and the assumption
or retention of the Assumed Liabilities and Retained Liabilities contemplated in
this Section 3.3 at the Closing, the appropriate parties shall execute and
deliver one or more instruments of assignment and assumption substantially in
the form attached hereto as Exhibit 3.3(e) ("Transfer Instruments").

         (f) Immediately prior to the Closing, but after the completion of the
steps described in this Sections 3.3(a) through (e) above, U.S. Propane shall
declare a dividend to NewGP and NewLP, the record holders of all general and
limited partner interests of U.S. Propane on the record date to be established
for such distribution, of the obligations to pay NewGP and NewLP the aggregate
amounts determined as specified below (which obligation shall be evidenced by a
note (the "GP Interests Note"), to be in a form mutually acceptable to the
Acquirer and the Venturers, such dividend to be declared and paid immediately
prior to the Closing. The GP Interests Note shall entitle NewGP and NewLP to
receive aggregate amounts calculated as described below, which amounts shall be
payable at the times specified below:

                           If the Closing occurs before payment of the quarterly
                  cash distributions by Heritage OLP and Heritage MLP for the
                  quarterly period ending November 30, 2003, an aggregate amount
                  equal to the sum of (A) the product of (I) the sum of the
                  quarterly cash distribution paid for the quarterly period
                  ending November 30, 2003 (which payment is to be made on or
                  about January 14, 2003) by (w) Heritage OLP in respect of the
                  1.0101% general partner interest owned prior to Closing by
                  U.S. Propane in Heritage OLP and (x) Heritage MLP in respect
                  of the 1.0% general partner interest and the Incentive
                  Distribution Right owned prior to Closing by U.S. Propane in
                  Heritage MLP times (II) a fraction, of which the numerator is
                  the number of days during the period that commences on, and

                                       13
<PAGE>

                  includes, September 1, 2003 and ends at, but excludes, the
                  Closing (but in no event shall the numerator exceed 91) and of
                  which the denominator is 91, and (B) if the Closing occurs
                  after November 30, 2003, the product of (I) the sum of the
                  quarterly cash distributions paid for the quarterly period
                  ending February 28, 2004 (which payment is to be made on or
                  about April 14, 2004) by (y) Heritage OLP in respect of the
                  1.0101% general partner interest owned prior to Closing by
                  U.S. Propane in Heritage OLP and (z) Heritage MLP in respect
                  of the 1.0% general partner interest and the Incentive
                  Distribution Right owned prior to Closing by U.S. Propane in
                  Heritage MLP times (II) a fraction, of which the numerator is
                  the number of days during the period that commences on, and
                  includes, December 1, 2003 and ends at, but excludes, the
                  Closing (but in no event shall the numerator exceed 90) and of
                  which the denominator is 90.

         Acquirer shall pay the amounts calculated pursuant to this Section
3.3(f) to NewLP in immediately available funds within one Business Day following
the payment date established by Heritage OLP or Heritage MLP, as the case may
be, for the quarterly cash distribution in respect of which an amount calculated
under this Section 3.4(b) is determined or determinable.

         3.4 SALE AND PURCHASE OF U.S. PROPANE AND GP SECURITIES. At the
Closing, NewLP shall sell to the Acquirer, and the Acquirer shall purchase from
NewLP, the Securities, including the right to become a substituted member of the
GP and a substituted limited partner of U.S. Propane. The purchase price for
such Securities (the "Purchase Price") to be paid to NewLP shall be cash in
immediately available funds in the amount of $30,000,000.00. As a consequence of
the transactions described in this Section 3.4, (i) the Acquirer will become the
substituted member of the GP, (ii) the Acquirer will become the substituted
limited partner of U.S. Propane, (iii) NewLP shall cease to have any member
interest or limited partner interest in the GP or U.S. Propane, including the
cessation of any rights to receive allocations of income, gain, loss, deduction
or credit from, the capital account balance of, or (subject to the rights to
payments under the GP Interests Note) distributions from, the GP or U.S.
Propane, and (iv) NewLP and the Venturers shall cease to have any deficit
restoration obligation pursuant to the U.S. Propane agreement of limited
partnership.

         3.5 U.S. PROPANE GENERAL PARTNER INTERESTS. Immediately following the
capital contribution to Heritage LP, Inc., described in Section 2.2 of the
Contribution Agreement, U.S. Propane shall contribute to Heritage MLP all of its
interest in Heritage OLP as an additional capital contribution to Heritage MLP
in exchange for an additional 1% general partner interest in Heritage MLP such
that when such capital contribution is made, U.S. Propane will own a 2% general
partner interest in Heritage MLP.

         3.6 RESIGNATIONS; VENTURERS' BOARD RIGHTS.

         (a)      Effective concurrently with the Closing, H. Michael Krimbill,
James E. Bertelsmeyer, Andrew W. Evans, Royston K. Eustace, William N. Cantrell,
Richard T. O'Brien, David J. Dzuricky, Kevin M. O'Hara, J. Patrick Reddy and
J.D. Woodward (or their respective successors as members of the Board of
Directors of the GP) will resign, or the Venturers will take such action to
cause such members to be removed from the Board of Directors, as members of the
Board of Directors of the GP and any other offices that such persons may hold
with the GP

                                       14

<PAGE>

or U.S. Propane, and concurrently with such resignations, the Acquirer will take
such actions as are necessary or appropriate to fill the vacancies created
thereby. In addition, upon the request of Acquirer received not less than three
business days in writing prior to Closing, each of Bill W. Byrne, Stephen L.
Cropper and J. Charles Sawyer will resign as members of the Board of Directors
of the GP effective as of Closing.

         (b)      During the period that commences immediately after the
Closing, the Venturers collectively shall have the right to appoint one person
(the "Venturer Board Member") who shall have the right to serve as a member of
the Board of Directors of the GP, to receive notice of such meetings and to
receive information provided by the GP to the Board of Directors; provided,
however, that the GP may require as a condition precedent to the Venturers'
rights under this Section 3.6 that the Venturer Board Member shall agree to hold
in trust and confidence all information so received during such meetings;
provided further, that the GP reserves the right not to provide information and
to exclude the Venturer Board Member from any meeting or portion thereof if (i)
delivery of such information or attendance at such meeting by the Venturer Board
Member would adversely affect the attorney-client privilege between the GP and
its counsel or (ii) the GP determines in its sole discretion that it is
necessary or advisable to discuss matters relating to that certain Promissory
Note of Heritage MLP dated as of the Closing Date and payable to NewLP in the
original principal amount of $50,000,000 (the "MLP Note"). In the event of the
death or Disability of the person serving as the Venturer Board Member, the
Venturers shall have the right to designate a replacement to serve as the
Venturer Board Member, and the person so designated as a replacement shall be
subject to the approval (which will not be unreasonably withheld) of not less
than a majority of the entire membership of Board of Directors of the GP
(excluding the Venturer Board Member, if the Venturer Board Member is then a
member of the Board of Directors), and if not so approved the Venturers may
propose a different person as such a replacement. The right of the Venturers to
designate the Venturer Board Member shall terminate upon the payment in full of
all amounts due and payable under the MLP Note and the Venturer Board Member
shall resign from the Board of Directors of the GP immediately upon such
payment. The Parties agree that Richard T. O'Brien shall be the initial Venturer
Board Member upon Closing. As used herein, "Disability" shall mean a physical or
mental condition of the Venturer Board Member that, in the good faith judgment
of not less than a majority of the entire membership of the Board of Directors
of the GP (excluding the Venturer Board Member, if the Venturer Board Member is
then a member of the Board of Directors), based upon certification by a licensed
physician reasonably acceptable to the Venturer Board Member and the Board of
Directors, (i) prevents the Venturer Board Member from being able to perform the
services required of a member of the Board of Directors, (ii) has continued for
a period of at least 180 days during any 12-month period and (iii) is expected
to continue.

                                   ARTICLE IV
                 REPRESENTATIONS AND WARRANTIES OF THE VENTURERS

         For the purposes of this Agreement, each of the Venturers, severally
and not jointly, represents and warrants to the Acquirer as set forth in this
Article 4.

                                       15

<PAGE>

         4.1 ORGANIZATION AND EXISTENCE.

         (a) Schedule 4.1(a) sets forth the form of organization, legal name and
the Organization State of each of the Venturers. Each of the Venturers is either
a limited liability company or corporation, as indicated on Schedule 4.1(a),
duly organized or formed, validly existing and in good standing under the laws
of its Organization State. Each of the Venturers has full power and authority to
own, lease or otherwise hold and operate its properties and assets and to carry
on its business as presently conducted. Each of the Venturers is duly qualified
and in good standing to do business as a foreign limited liability company or
corporation, as applicable, in each jurisdiction in which the conduct or nature
of its business or the ownership, leasing, holding or operating of its
properties makes such qualification necessary, except such jurisdictions where
the failure to be so qualified or in good standing, individually or in the
aggregate, would not have a Material Adverse Effect on such Venturer.

         (b) As of the Closing, NewLP will (i) be a limited partnership duly
organized or formed, validly existing and in good standing under the laws of the
State of Delaware, (ii) have full power and authority to own, lease or otherwise
hold and operate its properties and assets and to carry on its business as then
conducted and (iii) be duly qualified and in good standing to do business as a
foreign limited partnership in each jurisdiction in which the conduct or nature
of its business or the ownership, leasing, holding or operating of its
properties makes such qualification necessary, except in such jurisdictions
where the failure to be so qualified or in good standing, individually or in the
aggregate, would not have a Material Adverse Effect on NewLP.

         (c) Each of U.S. Propane and the GP is a limited partnership or a
limited liability company, respectively, in each case duly organized or formed,
validly existing and in good standing under the laws of the State of Delaware.
Each of U.S. Propane and the GP has full power and authority to own, lease or
otherwise hold and operate its properties and assets and to carry on its
business as presently conducted. Each of U.S. Propane and the GP is duly
qualified and in good standing to do business as a foreign limited partnership
or limited liability company, as applicable, in each jurisdiction in which the
conduct or nature of its business or the ownership, leasing, holding or
operating of its properties makes such qualification necessary, except such
jurisdictions where the failure to be so qualified or in good standing,
individually or in the aggregate, would not have a Material Adverse Effect on
the GP or U.S. Propane.

         4.2 CAPITALIZATION OF THE GP AND U.S. PROPANE.

         (a) The respective authorized and outstanding Member Interests of the
GP and the authorized and outstanding Partner Interests of U.S. Propane are as
disclosed on Schedule 4.2(a). All outstanding Securities have been validly
issued and are fully paid (to the extent required under the Amended and Restated
Limited Liability Company Agreement of the GP (the "GP LLC Agreement") and the
Amended and Restated Agreement of Limited Partnership of U.S. Propane (the "U.S.
Propane Agreement"), respectively) and nonassessable (except as such
non-assessability may be affected by the matters specified in Sections 17-303
and 17-607 of DRULPA and except for the capital account restoration obligation
under the U.S. Propane Agreement), and none of the Securities has been issued in
violation of preemptive or similar rights. U.S. Propane does not have a negative
balance in its Capital Account (as defined in the

                                       16

<PAGE>

Heritage MLP Partnership Agreement, the Heritage OLP Partnership Agreement or
the U.S. Propane Agreement, as applicable) maintained by Heritage MLP or
Heritage OLP (in the case of U.S. Propane) or by U.S. Propane (in the case of
GP) and in the case of the GP at Closing, the GP will not have a negative
balance in its Capital Account. All issuances, sales, and repurchases by the GP
and U.S. Propane of their respective Securities have been effected in compliance
in all material respects with all Applicable Laws, including applicable Federal
and state securities laws. None of the Venturers, in their respective capacities
as the limited partners of U.S. Propane, have participated in the control of the
business of U.S. Propane in a manner that would give rise to liability of a
purchaser of the Securities for the obligations of U.S. Propane pursuant to
Section 17-303(a) of DRULPA, and none of the Venturers has received a
distribution from U.S. Propane or the GP in violation of Section 17-607(a) of
DRULPA or Section 18-607(a) under the Delaware Limited Liability Company Act for
which a purchaser of the Securities would be responsible.

         (b) Except as contemplated by Article III of this Agreement and as set
forth on Schedule 4.2(b), no authorized but unissued Securities of the GP or
U.S. Propane, as applicable, are reserved for or subject to issuance.

         (c) Except as contemplated by Article III of this Agreement, the
Transfer Restriction Agreement and as set forth on Schedule 4.2(c), there are no
outstanding options, warrants, subscriptions, rights, convertible or
exchangeable securities or other agreements or plans under which the GP, U.S.
Propane, NewLP or any Venturer may become obligated to issue, sell or transfer
any Securities (whether issued or granted by, or binding upon any of the GP,
U.S. Propane, NewLP or any Venturer).

         (d) There are no outstanding registration rights with respect to any
Securities.

         (e) Except as contemplated by Article III of this Agreement, the GP LLC
Agreement, the U.S. Propane Agreement and as set forth on Schedule 4.2(e), there
are no voting trusts, agreements, proxies or other agreements or understandings
to which any of the GP, U.S. Propane, NewLP or the Venturers is a party with
respect to the issuance, sale, redemption, registration, voting or transfer or
other disposition of any of the Securities.

         (f) All outstanding Incentive Distribution Rights have been validly
issued and are fully paid and nonassessable, and all outstanding general partner
interests in Heritage MLP and Heritage OLP have been validly issued. None of the
Incentive Distribution Rights nor such general partner interests in Heritage MLP
and Heritage OLP are subject to, nor have any been issued in violation of,
preemptive or similar rights. All prior issuances and sales by Heritage MLP of
Incentive Distribution Rights, its outstanding general partner interests or
Common Units owned by U.S. Propane or HHI and all issuances and sales by
Heritage OLP of its outstanding general partner interests have been effected in
compliance in all material respects with all Applicable Laws, including
applicable Federal and state securities laws. Heritage MLP has not repurchased
any of its Incentive Distribution Rights or outstanding general partner
interests.

         4.3 AUTHORITY. Each of the GP and U.S. Propane and each of the
Venturers has full power and authority to execute, deliver and perform this
Agreement and the other Operative Documents to which it is a party, and to
consummate the transactions contemplated hereby or

                                       17

<PAGE>

thereby. The execution, delivery and performance by each of the GP and U.S.
Propane and each of the Venturers of this Agreement and the other Operative
Documents, and the consummation by it of the transactions contemplated thereby,
have been duly authorized by all necessary action of such Person. This Agreement
has been duly executed and delivered by each of the GP and U.S. Propane and each
of the Venturers and constitutes, and each of the Operative Documents and each
other agreement, instrument or document executed or to be executed by the GP,
U.S. Propane or any of the Venturers in connection with the transactions
contemplated by this Agreement has been, or when executed will be, duly executed
and delivered by such party and constitutes, or when executed and delivered will
constitute, a valid and legally binding obligation of such Person enforceable
against it in accordance with its terms, except as may be limited by (a)
applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws
affecting creditors' rights generally and (b) general equitable principles.

         4.4 NONCONTRAVENTION. The execution, delivery and performance by the
each of the GP, U.S. Propane and each of the Venturers of this Agreement and the
other Operative Documents to which it is a party, and the consummation by it of
the transactions contemplated hereby and thereby do not and will not (a) result
in a breach or violation of any provision of the respective charter or bylaws or
other governing instruments of any of the GP, U.S. Propane, NewLP, any Venturer
or any of the Heritage Entities, (b) result in a breach or violation of any
provision of, or constitute (with or without the giving of notice or the passage
of time or both) a default under, or (except as disclosed on Schedule 4.4) give
rise (with or without the giving of notice or the passage of time or both) to
any right of termination, cancellation or acceleration under, any material bond,
debenture, note, mortgage, indenture, lease, contract, agreement or other
instrument or obligation to which the GP, U.S. Propane, NewLP or any Venturer is
a party or by which their respective properties are bound, (c) result in the
creation or imposition of any Encumbrance upon any of the GP or U.S. Propane or
any of their respective Assets and Properties or (d) assuming compliance with
the matters referred to in Section 4.5, violate any Applicable Law binding upon
the GP, U.S. Propane, NewLP or any Venturer, or any of their respective Assets
and Properties.

         4.5 GOVERNMENTAL APPROVALS. Except as set forth in Schedule 4.5, except
as may be required under state securities or "Blue Sky" laws and except for
filings with Governmental Authorities with respect to the formation of NewGP and
NewLP and the transactions contemplated by the Contribution Agreement, no
consent, approval, order or authorization of, or declaration, filing or
registration with, any Governmental Authority is required to be obtained or made
by any of the GP, U.S. Propane, the Heritage MLP or the Heritage OLP in
connection with the execution, delivery or performance of this Agreement and the
other Operative Documents or the consummation by any of such Persons of the
transactions contemplated hereby or thereby.

         4.6 TITLE TO SECURITIES. A true and correct copy of the U.S. Propane
Agreement and the GP LLC Agreement, together with all amendments through the
date of this Agreement, have been provided to the Acquirer. Except for such
consents and approvals as are referenced in Section 4.5 and provided that the
consents referred to in Section 6.1 of this Agreement will be obtained from
NewLP and the other Venturers pursuant to Section 6.1 of this Agreement, each
Venturer has the power and authority to transfer, assign and convey the
Securities owned by such Venturer to NewLP at the Closing as provided herein,
and upon such transfer, assignment and conveyance, NewLP shall acquire good and
marketable title to such Securities free and clear of

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<PAGE>

all Encumbrances (other than any Encumbrances listed on Schedule 4.6,
Encumbrances arising under the U.S. Propane Agreement or the GP LLC Agreement,
which to the extent such Encumbrances may be waived by the Venturers, are being
waived pursuant to Section 6.1 of this Agreement, and any restriction on free
transferability of the Securities arising under applicable federal or state
securities laws). Prior to the Closing, NewLP will have the power and authority
to transfer, assign and convey the Securities to the Acquirer at the Closing as
provided herein, and upon such conveyance and assignment, Acquirer shall acquire
good and marketable title to such Securities free and clear of all Encumbrances
(other than any Encumbrances arising under the U.S. Propane Agreement or the GP
LLC Agreement and any restriction on free transferability of the Securities
arising under applicable federal or state securities laws), and Acquirer shall
become a substituted member of the GP and a substituted limited partner of U.S.
Propane.

         4.7 SUBSIDIARIES; JOINT VENTURES.

         (a) The only Subsidiaries of the GP and U.S. Propane are HHI and those
set forth on Schedule 4.7(a) hereto. Schedule 4.7(a) hereto identifies the
equity interests owned by the GP, U.S. Propane or HHI in each of the Heritage
Entities (excluding the 1.0 percent general partner interest in Heritage MLP,
the 1.0101 percent general partner interest in Heritage OLP, and the Incentive
Distribution Rights owned by U.S. Propane), which equity interests (including
such general partner interests not included on Schedule 4.7(a)) are so owned,
beneficially and of record, and free and clear of all Encumbrances, by the GP,
U.S. Propane or HHI, as applicable.

         (b) Except (i) as set forth on Schedule 4.7(b), (ii) with respect to
the status of the GP as the general partner of U.S. Propane and (iii) with
respect to the status of U.S. Propane as the general partner of Heritage MLP and
Heritage OLP, neither the GP nor U.S. Propane is engaged in any joint venture or
partnership with any other Person.

         4.8 TITLE TO ASSETS AND PROPERTIES. Immediately prior to the Closing
and after giving effect to the transactions contemplated in Sections 3.1 through
3.5, inclusive, (i) NewLP will have good and marketable title to the Securities,
(ii) the GP will have good and marketable title to the 0.01% general partner
interest of U.S. Propane, (iii) U.S. Propane will have good and marketable title
to, or valid leasehold interests in, the Retained Assets and (iv) NewLP will
have title to, or valid leasehold interests in, the assets received from U.S.
Propane pursuant to Section 3.3(a) and with respect to clauses (i) and (ii) of
this Section 4.8 free and clear of all Encumbrances (except for Permitted
Encumbrances, Encumbrances arising pursuant to this Agreement or the Operative
Documents or any Encumbrance arising or existing under the charter, bylaws,
limited liability company agreement or limited partnership agreement, as
applicable, of such Person or, with respect to securities issued by a third
party held by such Person, of the issuer of such securities.

         4.9 FINANCIAL STATEMENTS; ABSENCE OF LIABILITIES.

         (a) Attached hereto as Schedule 4.9(a) are copies of the audited
balance sheet as of August 31, 2002 and the related unaudited statement of
income and owners' equity for the fiscal year then ended (including in all cases
the notes, if any, thereto) of U.S. Propane (collectively, the "Audited
Financial Statements"). Also attached as Schedule 4.9(a) are copies of the
unaudited balance sheet as of August 31, 2003 (the "Financial Statement Date")
and the related

                                       19

<PAGE>

statement of income, cash flows and owners' equity for the fiscal quarter then
ended of U.S. Propane (collectively, together with the Audited Financial
Statements, the "Financial Statements"). The Financial Statements have been
prepared in accordance with GAAP except in the case of the unaudited statements
as of the Financial Statement Date for normal year-end adjustments and the
absence of footnotes, and fairly present the respective consolidated financial
position of U.S. Propane as of the date set forth therein.

         (b) Except as reserved against in the Financial Statements, as
otherwise disclosed on Schedule 4.9(b) or for Liabilities not exceeding $5,000
individually or in the aggregate, there are no Liabilities of, relating to or
affecting the GP or U.S. Propane, other than the Assumed Liabilities,
Liabilities incurred in the ordinary course of business consistent with past
practice since the Financial Statement Date and General Partner Status
Liabilities of the GP and U.S. Propane solely as a result of their status as
general partner of U.S. Propane (in the case of the GP) and Heritage MLP and
Heritage OLP (in the case of U.S. Propane). Immediately prior to the Closing,
the Retained Liabilities and the GP Interests Note will be the only Liabilities
of the GP or U.S. Propane for which neither the GP nor U.S. Propane will be
entitled to indemnification under Section 10.2 hereof.

         4.10 ABSENCE OF CERTAIN CHANGES. Since the Financial Statement Date,
(a) there has been no event (except for changes resulting from general economic
conditions and weather, seasonality and other conditions that may affect the
industry of the GP, U.S. Propane, NewLP, the Heritage Entities and their
respective Subsidiaries generally) that would have a Material Adverse Effect;
(b) except for the execution, delivery and performance of this Agreement and the
Operative Documents to which the GP or U.S. Propane is a party, the U.S. Propane
Business has been conducted only in the ordinary course consistent with past
practice; (c) except for, or as contemplated by, this Agreement or the other
Operative Documents, none of the GP, U.S. Propane or NewLP have incurred any
material liability, engaged in any material transaction or entered into any
material agreement outside the ordinary course of business consistent with past
practice that individually or in the aggregate would have a Material Adverse
Effect; (d) none of the GP, U.S. Propane or NewLP has suffered any material
loss, damage, destruction or other casualty to any of the Assets and Properties
of such entity (whether or not covered by insurance) that individually or in the
aggregate would have a Material Adverse Effect; and (e) none of the GP or U.S.
Propane has taken any of the actions set forth in Section 7.5, except as
permitted thereunder.

         4.11 TAX MATTERS.

         (a) Except as set forth on Schedule 4.11(a), each of the GP and U.S.
Propane has filed all material Tax Returns required to be filed with the IRS or
other applicable taxing authority through the date hereof and such Tax Returns
are complete and correct in all material respects, and each of the GP and U.S.
Propane has timely paid or has recorded a full reserve in the Financial
Statements for payment of all Taxes shown to be due on any such Tax Return, and
has withheld and paid to the appropriate taxing authority any Tax that it is
required by Applicable Law to withhold and pay to a Taxing authority on or
before the date hereof other than, in either case, those which are being
contested in good faith as disclosed on Schedule 4.11(b). Neither the GP nor
U.S. Propane has any material liability for Taxes other than those incurred in
the ordinary course of business and in respect of which adequate reserves are
being maintained on the

                                       20

<PAGE>

Financial Statements in accordance with GAAP. There are no material liens for
Taxes upon any asset of any of the GP or U.S. Propane except for liens arising
as a matter of Applicable Law relating to current Taxes not yet due. There are
no Taxes that will be imposed on any of the GP or U.S. Propane in connection
with the execution of this Agreement or the Operative Documents (excluding the
Contribution Agreement) or in connection with any of the transactions
contemplated hereby or thereby. Except as set forth on Schedule 4.11(a), neither
the GP nor U.S. Propane currently is the beneficiary of any extension of time
within which to file any Tax Return.

         (b) Schedule 4.11(b) lists all Tax Returns filed by any of the GP or
U.S. Propane or any affiliated, consolidated, combined, unitary or similar group
of which any of the GP or U.S. Propane is or was a member on or after January 1,
2000 and on or before the date hereof and indicates those Tax Returns (i) that
are the subject of audit, (ii) in respect of which there is any other suit,
action, investigation or claim in progress by any Taxing authority or (iii) in
respect of which any issue has been raised by any Taxing authority at an earlier
time that is reasonably expected to be raised at a later time. Neither the GP
nor U.S. Propane has waived any statute of limitations in respect of Taxes or
agreed to any extension of time with respect to a Tax assessment or deficiency
or has received any notice from any Taxing authority that it intends to conduct
an audit or investigation thereof or is subject to any ruling of any Taxing
authority.

         (c) Except for payments triggered by change of control provisions under
the employment agreements identified on Schedule 3.18(a) to the Contribution
Agreement, neither the GP nor U.S. Propane has made any payment, is obligated to
make any payment, or is a party to any agreement that under certain
circumstances could obligate it to make any payment that will not be deductible
under Section 280G of the Code.

         (d) Neither the GP nor U.S. Propane is a United States real property
holding corporation within the meaning of Section 897(c)(2) of the Code on the
date hereof.

         (e) Except as disclosed on Schedule 4.11(e), neither the GP nor U.S.
Propane (i) has been a member of an affiliated group filing a consolidated
federal income Tax Return or (ii) has any liability for Taxes of any Person
(other than the GP or U.S. Propane) under Treas. Reg. 1.1502--6 (or any similar
provision of state, local or foreign law), as a transferee or successor, by
contract, or otherwise.

         (f) Neither the GP nor U.S. Propane will be classified at the time of
the transaction for which provision is made in Section 3.4, or will have been
classified at any time before that time, as a corporation for federal, state,
local or foreign income tax purposes or will be at that time, or will have been
at any time before that time, subject to any federal, state, local or foreign
income tax, except for Texas franchise taxes paid or payable by the GP. At the
time of the transaction for which provision is made in Section 3.4(a) hereof,
each of the GP and U.S. Propane will be disregarded for federal income tax
purposes, within the meaning of Treasury Regulation Section 301.7701--3(a), and
no election will have been filed with the IRS prior to such time that will cause
either of the GP or U.S. Propane to be classified as a corporation for federal
income tax purposes at any future time.

                                       21

<PAGE>

         (g) Both Heritage MLP and Heritage OLP have currently effective
elections under Section 754 of the Code.

         (h) Prior to the transaction for which provision is made in Section
3.4(a) hereof, the Venturers will not cause or permit U.S. Propane or Heritage
MLP or Heritage OLP to take any action or omit to take any action which, if
taken or omitted (as the case may be), would cause or permit the currently
effective elections by either such limited partnerships under Section 754 of the
Internal Revenue Code to be revoked.

         4.12 COMPLIANCE WITH LAWS. Subject to the specific representations
and warranties in this Agreement, which representations and warranties shall
govern the subject matter thereof, each of the GP and U.S. Propane has complied
in all material respects with all Applicable Laws relating to the ownership or
operation of their respective Assets and Properties and the conduct of their
respective businesses. Neither the GP nor U.S. Propane are charged or, to the
Knowledge of any of the Venturers, threatened with, or under investigation with
respect to, any violation of any Applicable Law relating to any aspect of the
ownership or operation of the GP or U.S. Propane or the U.S. Propane Business.

         4.13 LEGAL PROCEEDINGS. Except as set forth on Schedule 4.13, there
is (i) no Proceeding before or by any Governmental Authority or arbitrator or
official, domestic or foreign, now pending or, to the Knowledge of any of the
Venturers, threatened, to which any of the GP, U.S. Propane, NewLP or any of the
Venturers is or may be a party or to which the business or property of any of
the GP, U.S. Propane, NewLP or any of the Venturers is or may be subject, (ii)
no statute, rule, regulation or order that has been enacted, adopted or issued
by any Governmental Authority or that has been proposed by any Governmental
Authority and (iii) no injunction, restraining order or order of any nature
issued by a federal or state court or foreign court of competent jurisdiction to
which any of the GP, U.S. Propane, NewLP or any of the Venturers is or may be
subject, that, in the case of clauses (i), (ii) and (iii) above, is reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect.

         4.14 SUFFICIENCY OF ASSETS AND PROPERTIES. The Assets and
Properties of the GP and U.S. Propane constitute all the Assets and Properties
the use or benefit of which are reasonably necessary for the operation of the
business of each of such Persons as currently conducted. As of the Closing, all
tangible Assets and Properties of the GP and U.S. Propane (excluding those
Assets and Properties distributed and assigned or issued to NewLP pursuant to
Sections 3.2, 3.3 and 3.4) will be in the possession, or under the control, of
the GP and U.S. Propane, as applicable, subject to sales of inventory in the
ordinary course of business, and all of such Assets and Properties are in good
condition, normal wear and tear excepted, and are useable in the continued
operation of the business of the GP and U.S. Propane, as applicable, consistent
with past practice.

         4.15 INTELLECTUAL PROPERTY. Except as set forth in Schedule 4.15,
each of the GP and U.S. Propane owns or possesses or has the right to use, or at
the Closing Date will own or possess or have the right to use in the localities
where they are currently used by the GP or U.S. Propane, all patents,
trademarks, trademark registrations, service marks, service mark registrations,
trade names, copyrights, licenses, inventions, trade secrets and rights
necessary for the conduct of the business of the GP or U.S. Propane, other than
those which if not so owned or

                                       22

<PAGE>

possessed would not have a Material Adverse Effect, and none of the Venturers
has any Knowledge of any claim to the contrary or any challenge by any other
Person to the rights of the GP or U.S. Propane with respect to the foregoing.

         4.16 STATUS AS GENERAL PARTNER. U.S. Propane became the sole general
partner of each of Heritage MLP and Heritage OLP on February 4, 2002, and no
consent, approval, waiver, permit, order or authorization of, or declaration to
or filing with, any Person or Governmental Authority not otherwise obtained was
necessary in order for U.S. Propane to become the sole general partner of
Heritage MLP and Heritage OLP.

         4.17 MATERIAL CONTRACTS. Set forth in Schedule 4.17 is a list of all
Material Contracts to which the GP or U.S. Propane is a party or by which it or
any of its properties may be bound (other than the GP LLC Agreement, the U.S.
Propane Agreement, the Heritage MLP Agreement, the agreement of limited
partnership, as amended, of Heritage OLP and the other Original Formation
Agreements). Each such Material Contract to which the GP or U.S. Propane is a
party is a valid and binding agreement of the GP or U.S. Propane (as the case
may be) enforceable against the GP or U.S. Propane, as applicable, in accordance
with its terms except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to the enforcement of creditors' rights generally and by general
principles of equity. Neither the GP nor U.S. Propane is in breach, default (or
an event that, with notice or lapse of time or both, would constitute such a
default) or violation in the performance of any obligation, agreement or
condition contained in any Material Contract to which it is a party or by which
it or any of its properties may be bound. To the Knowledge of any Venturer, no
third party to any Material Contract to which the GP or U.S. Propane is a party
or by which any of them is bound or to which any of their properties are subject
is in default under any such Material Contract.

         4.18 ENVIRONMENTAL MATTERS.To the Knowledge of each of the Venturers,
except as set forth in Schedule 4.18, neither the GP nor U.S. Propane is in
violation of, or subject to, any pending or threatened Proceeding under, any
Applicable Laws pertaining to health, safety, the environment, Hazardous
Substances or Solid Wastes (such Applicable Laws as they now exist are herein
collectively called "Applicable Environmental Laws") relating to the ownership
or operation of the Assets and Properties of the GP or U.S. Propane or the
operation of the respective businesses of the GP or U.S. Propane, including (i)
the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as amended ("CERCLA"), and (ii) the Resource Conservation and Recovery Act
of 1976, as amended ("RCRA"). To the Knowledge of each of the Venturers, except
as set forth in Schedule 4.18, the GP and U.S. Propane have obtained all Permits
to construct, occupy, lease, operate or use any real property or any equipment
or other tangible property forming a part of their respective Assets and
Properties by reason of any Applicable Environmental Laws.

         (a) To the Knowledge of each of the Venturers, except as set forth in
Schedule 4.18, there are no past or present events, conditions, circumstances or
plans (i) that interfere with or prevent compliance or continued compliance,
with respect to the Assets and Properties of the GP or U.S. Propane or their
respective businesses, with Applicable Environmental Laws or (ii) that are
reasonably expected to give rise to any common law or other legal liability or
obligation with respect to the Assets and Properties of the GP or U.S. Propane
or their respective businesses,

                                       23

<PAGE>

including liability or obligation under CERCLA or RCRA, based on or related to
the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling or the emission, discharge, release or threatened release
into the environment, of any pollutant, contaminant, chemical, industrial toxin,
Hazardous Substance or Solid Waste (other than any General Partner Status
Liability of the GP or U.S. Propane existing solely as a result of their status
as the general partner of U.S. Propane (in the case of the GP) or Heritage MLP
or Heritage OLP (in the case of U.S. Propane).

         (b) As used in this Agreement, the term "Hazardous Substance" shall
have the meaning currently specified in CERCLA and the term "Solid Waste" shall
have the meaning currently specified in RCRA; provided, that to the extent the
Applicable Laws of the jurisdiction in which the particular asset is located
have currently established a meaning for such term that is broader than that
specified in CERCLA or RCRA, such broader meaning shall apply.

         (c) To the Knowledge of each of the Venturers, except as set forth in
Schedule 4.18, there are no (i) underground storage tanks, known contamination
of soil or groundwater, or known or suspected asbestos or asbestos-containing
materials on any property owned or leased by the GP or U.S. Propane, (ii)
pending or threatened complaints, suits, actions or demand letters by any third
party or Governmental Authority relating to any alleged violation of Applicable
Environmental Law by any of the GP or U.S. Propane or (iii) permits required of
the GP or U.S. Propane under applicable Environmental Laws to own, lease or
operate their properties and conduct their respective businesses the terms and
conditions of which any of the GP or U.S. Propane have violated or are violating
(except, in each case as would not have a Material Adverse Effect on the GP or
U.S. Propane), or (iv) real estate sites owned or operated by any of the GP or
U.S. Propane that have been used as a manufactured gas plant site.

         4.19 INSURANCE. The GP and U.S. Propane maintain insurance covering
their respective properties, operations, personnel and businesses. In the
reasonable judgment of the Venturers, such insurance insures against such losses
and risks as are reasonably adequate to protect the GP and U.S. Propane and
their respective businesses. Neither the GP nor U.S. Propane has received
written notice from any insurer or agent of such insurer that substantial
capital improvements or other expenditures will have to be made in order to
continue such insurance; all such insurance is outstanding and duly in force on
the date hereof and will be outstanding and duly in force on the Closing Date.

         4.20 BOOKS AND RECORDS.

         (a) Each of the GP and U.S. Propane (i) makes and keeps books, records
and accounts, which, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of assets and (ii) maintains systems of internal
accounting controls sufficient to provide reasonable assurances that (A)
transactions are executed in accordance with management's general or specific
authorization; (B) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain accountability
for assets; (C) access to assets is permitted only in accordance with
management's general or specific authorization; and (D) the recorded
accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

                                       24

<PAGE>

         (b) None of the GP, U.S. Propane nor, to the Knowledge of the
Venturers, any employee or agent of any of the GP or U.S. Propane has made any
payment of funds of any either of the GP or U.S. Propane or received or retained
any funds in either case in violation of any law, rule or regulation, which
payment, receipt or retention of funds is of a character which would be required
to be disclosed in any reports which would be required to be filed by the GP or
U.S. Propane if the such entity were subject to the reporting requirements of
the Exchange Act.

         4.21 EMPLOYEE MATTERS. Each of the GP and U.S. Propane has complied
in all material respects with all Applicable Laws relating to the employment of
labor, including provisions relating to wages, hours, equal opportunity,
collective bargaining and the payment of Social Security and other taxes. Except
as set forth in Schedule 4.21, neither the GP nor U.S. Propane is bound by or
subject to (and none of its assets or properties is bound by or subject to) any
written or, to the Knowledge of any of the Venturers, oral, express or implied,
commitment or arrangement with any labor union, and, to the Knowledge of the GP,
U.S. Propane or the Venturers, no labor union has requested or has sought to
represent any of the employees, representatives or agents of the GP or U.S.
Propane and there is no labor strike, dispute, slowdown or stoppage actually
pending or, to the Knowledge of the Venturers, threatened against or involving
the GP or U.S. Propane.

         4.22 ERISA.Schedule 4.22(a) lists each Benefit Plan maintained by
the GP, U.S. Propane or any ERISA Affiliate.

         (a) Schedule 4.22(b) lists each defined benefit plan, within the
meaning of Section 3(35) of ERISA (whether or not subject to Title IV thereof),
maintained by the GP, U.S. Propane or any ERISA Affiliate within the last six
years (or with respect to which any of them could reasonably be expected to have
any liability), and copies of the most recent actuarial valuation report, if
any, with respect to any such plan has been made available to the Acquirer. None
of the GP, U.S. Propane, any ERISA Affiliate or any organization to which any of
them is a successor or parent corporation (within the meaning of Section 4069(6)
of ERISA) have engaged in any transaction which is subject to Section 4069 of
ERISA.

         (b) None of the GP, U.S. Propane or any ERISA Affiliate has any
obligation to contribute to any Multiemployer Plan subject to Title IV of ERISA,
and no circumstances exist pursuant to which the GP, U.S. Propane or any ERISA
Affiliate could be assessed with withdrawal liability by any such multiemployer
plan under Section 4201 of ERISA.

         (c) Each Benefit Plan that is intended to be qualified under Section
401 of the Code has received a favorable determination as to its qualified
status from the IRS, and to the Knowledge of the Venturers, nothing has occurred
with respect to the operation of any such plan which could cause the loss of
such qualification.

         (d) To the Knowledge of the Venturers, each Benefit Plan has been
maintained in all material respects in accordance with its terms and with all
provisions of ERISA and the Code (including rules and regulations thereunder)
and other Applicable Laws.

         (e) None of the GP, U.S. Propane or any ERISA Affiliate have incurred
any liability under Section 4062, 4063 or 4064 of ERISA.

                                       25

<PAGE>

         4.23 CONSENTS. Schedule 4.23 sets forth each of the consents,
approvals, orders, authorizations and waivers of, and declarations, filings and
registrations with, all third parties (including Governmental Authorities) that
are necessary or required to permit the transactions contemplated by this
Agreement and otherwise to consummate the transactions contemplated hereby (the
"Consents"). Schedule 4.23 includes all of the Consents that, if not obtained
and in full force and effect at the time of the Closing, could result in a
Material Adverse Effect.

         4.24 FINDER'S FEES. Except as set forth on Schedule 4.24, none of the
GP, U.S. Propane, NewLP, the Venturers, or any of their respective Affiliates,
are obligated (directly or indirectly) under any agreement with any Person that
would obligate the Acquirer to pay any commission, brokerage or "finder's fee"
in connection with the transactions contemplated by this Agreement or the other
Operative Documents.

         4.25 REGULATION. Except as set forth on Schedule 4.25, neither the GP
nor U.S. Propane is now, and immediately after the consummation of the
transactions contemplated by this Agreement none of the Heritage Entities will
be, (i) an "investment company" or a company "controlled by" an "investment
company" within the meaning of the Investment Company Act of 1940, as amended,
or (ii) a "holding company" or a "subsidiary company" of a "holding company" or
an "affiliate" thereof, within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

         4.26 CONDUCT OF BUSINESS. Except as provided on Schedule 4.26, since
the Financial Statement Date, neither the GP nor U.S. Propane has taken any
actions that would be prohibited by the provisions of Section 7.5, if such
actions had been taken after the date of this Agreement.

         4.27 EXEMPTION FROM REGISTRATION. Assuming the accuracy on the date
hereof and on the Closing Date of the representations and warranties of the
Acquirer set forth in Section 5.3 below, the transfer, assignment and conveyance
of the Securities by the Venturers to NewLP and by NewLP to the Acquirer
hereunder are exempt from the registration requirements of the Securities Act.

         4.28 NO VIOLATION. None of the GP, U.S. Propane or NewLP is in (i)
violation of its partnership agreement, certificate or articles of incorporation
or bylaws or other organizational documents, (ii) violation of any law, statute,
ordinance, administrative or governmental rule or regulation applicable to it or
of any decree of any Governmental Authority having jurisdiction over it or (iii)
breach, default (or an event which, with notice or lapse of time or both, would
constitute such a default) or violation in the performance of any obligation,
agreement or condition contained in any bond, debenture, note or any other
evidence of indebtedness or in any agreement, indenture, lease or other
instrument to which it is a party or by which it or any of its properties may be
bound, which in the case of any breach, default or violation subject to clause
(ii) or (iii) would, if continued, have a Material Adverse Effect. To the
Knowledge of the Venturers, no third party to any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which any of the GP,
U.S. Propane or NewLP is a party or by which any of them is bound or to which
any of their respective properties are subject, is in default under any such
agreement, which breach, default or violation would, if continued, have a
Material Adverse Effect.

                                       26

<PAGE>

         4.29 SEC FILINGS. To the Knowledge of Venturers, none of the SEC
Filings, including, without limitation, any financial statements or schedules
included therein, at the time filed, contained any untrue statement of a
material fact or omitted to state any material fact required to be stated
therein or necessary in order to make the statements contained therein, in light
of the circumstances under which they were made, not misleading.

                                   ARTICLE V
                 REPRESENTATIONS AND WARRANTIES OF THE ACQUIRER

         The Acquirer hereby represents and warrants to each of the Venturers as
follows:

         5.1 ORGANIZATION; POWER AND AUTHORITY. The Acquirer is duly organized
and validly existing as a limited partnership under the laws of the State of
Texas, and has full power and authority to execute and deliver this Agreement
and the other Operative Documents to which it is a party and to perform its
obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. The execution and delivery by the Acquirer of
this Agreement and the performance by the Acquirer of its obligations hereunder
have been, and the other Operative Documents will be, duly and validly
authorized by the Acquirer. This Agreement has been duly and validly executed
and delivered by the Acquirer and constitutes, and upon the execution and
delivery by the Acquirer of the other Operative Documents to which it is a
party, such other Operative Documents will constitute, legal, valid and binding
obligations of the Acquirer enforceable against it in accordance with their
respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to the enforcement of creditors' rights generally and by general
principles of equity.

         5.2 NONCONTRAVENTION. The execution, delivery and performance of this
Agreement and the other Operative Documents to which the Acquirer is a party and
the consummation by the Acquirer of the transactions contemplated hereby and
thereby do not and will not conflict with, or constitute a breach, violation or
default under, any Contract to which the Acquirer is a party, or result in a
violation of the Acquirer's organizational documents or any order, judgment or
decree of any court or Governmental Authority having jurisdiction over the
Acquirer or any of its properties and, no consent, authorization or order of, or
filing or registration with, any Governmental Authority (other than such filings
as are contemplated in the Contribution Agreement, including any necessary
filings under the HSR Act) is required by the Acquirer for the execution,
delivery and performance of this Agreement or any of the other Operative
Documents.

         5.3 INVESTMENT INTENT.

         (a) The Acquirer is acquiring the Securities for its own account as
principal, for investment purposes only, and not for or with a view to the
resale, distribution or granting of a participation therein, in whole or in
part, in violation of the Securities Act or the securities laws of any
jurisdiction applicable to the Acquirer.

         (b) The Acquirer acknowledges its understanding that the offering and
sale of Securities has not been registered under the Securities Act. The
Acquirer acknowledges that it is familiar

                                       27
<PAGE>

with the limitations that are imposed by the Securities Act on any Transfer of
an interest in the Securities. The Acquirer understands and acknowledges that it
may have to bear the economic risk of its investment in the Securities for an
indefinite period of time unless the Securities are subsequently registered
under the Securities Act or an exemption therefrom is available. The Acquirer
hereby agrees that the Securities will not be transferred other than (i)
pursuant to a registration under the Securities Act or pursuant to an exemption
therefrom, and (ii) in compliance with any applicable state securities laws.

         5.4 BROKERS. No agent, broker, finder, investment banker, financial
advisor or other similar Person will be entitled to any fee, commission or other
compensation in connection with any of the transactions contemplated by this
Agreement or the other Operative Documents on the basis of any act or statement
made or alleged to have been made by the Acquirer or any of its Affiliates,
directors, officers or other representatives.

         5.5 REPRESENTATIONS REGARDING FUNDING. The Acquirer will have adequate
funds available to it as are necessary to pay the Purchase Price in full at the
Closing.

                                   ARTICLE VI
                     APPROVALS, AUTHORIZATIONS AND CONSENTS

         6.1 CONSENT OF THE GP, U.S. PROPANE AND THE VENTURERS. By its execution
of this Agreement, (a) each of the GP, U.S. Propane and the Venturers consent
to, and prior to the Closing will cause NewLP to consent to (to the extent
applicable), the Transfer by each Venturer and NewLP of the Member Interests and
the Partner Interests, as applicable, in accordance with the transactions
contemplated in this Agreement, pursuant to (i) the U.S. Propane Agreement, (ii)
the GP LLC Agreement, (iii) the Transfer Restriction Agreement and (iv) any
other agreements by and among one or more Venturers that require such consent to
the transactions contemplated in this Agreement, and (b) each of the Venturers
waives any Encumbrances that exist under the U.S. Propane Agreement or the GP
LLC Agreement on the Securities immediately prior to the Closing to the fullest
extent that such Encumbrances may be so waived by such Venturer.

         6.2 AUTHORIZATIONS AND CONSENTS.

         (a) Each party hereto shall take all commercially reasonable steps
necessary or desirable, and proceed diligently and in good faith and shall use
all reasonable commercial efforts to obtain, as promptly as practicable, (i) all
authorizations, consents, orders and approvals of all Governmental Authorities
that may be or become necessary for such party's execution and delivery of, and
the performance of its obligations pursuant to, this Agreement and the other
Operative Documents, and (ii) all approvals and consents (including those
approvals, consents and authorizations specified in Schedule 4.23) required
under all Contracts to which the GP, U.S. Propane, NewLP or any of the Venturers
is a party (including all Contracts involving Indebtedness) to consummate the
transactions contemplated hereby. Each party will cooperate fully (including by
providing all information the other party reasonably requests, subject to any
confidentiality agreement (other than any confidentiality agreement exclusively
between or among one or more of the parties to this Agreement) to which the
party may be subject (and such party will use its reasonable commercial efforts
to limit the applicability of any such

                                       28

<PAGE>

confidentiality agreement to the extent reasonably practicable, including by (1)
obtaining a waiver thereof or (2) obtaining assurances from the requesting party
that such information will remain confidential)) with the other parties in
promptly seeking to obtain all such authorizations, consents, orders and
approvals. To the extent that the parties hereto mutually agree that filings
under the HSR Act are necessary or appropriate, each party hereto agrees to make
an appropriate filing of a Notification and Report Form pursuant to the HSR Act
with respect to the transactions contemplated hereby within five Business Days
after the date of this Agreement, use their commercially reasonable efforts to
cause the waiting period under the HSR Act to expire as quickly as possible and
to supply promptly any additional information and documentary material that may
be requested pursuant to the HSR Act. Notwithstanding the foregoing, no party
hereto shall have any obligation to dispose of, hold separate or otherwise
restrict its enjoyment of any of their assets or properties in order to obtain
requisite approvals pursuant to the HSR Act.

         (b) Each party hereto shall promptly inform the other party of any
communication from any Governmental Authority regarding any of the transactions
contemplated by this Agreement. If any party or Affiliate thereof receives a
request for additional information or documentary material from any such
Governmental Authority with respect to the transactions contemplated hereby,
then such party will endeavor in good faith to make, or cause to be made, as
soon as reasonably practicable and after consultation with the other party, an
appropriate response in compliance with such request.

         6.3 FURTHER ASSURANCES. The GP, U.S. Propane and each of the Venturers
will, and, following the formation of NewLP and prior to Closing, the Venturers
will cause NewLP to, whenever and as often as reasonably requested to do so by
the Acquirer, perform, execute, acknowledge and deliver any and all such other
and further acts, assignments, transfers and any instruments of further
assurance, approvals and consents as are necessary or proper in order to
complete, ensure and perfect the sale and transfer to the Acquirer of the
Securities and the consummation of the other transactions contemplated hereby.

                                       29

<PAGE>

                                  ARTICLE VII
                              ADDITIONAL AGREEMENTS

         7.1 ACCESS TO INFORMATION.(a) Between the date hereof and the Closing,
the Venturers shall cause the GP, U.S. Propane and NewLP to (i) give the
Acquirer and its authorized representatives reasonable access to all facilities
and all books and records relating to the GP, U.S. Propane and NewLP, (ii)
permit the Acquirer and its authorized representatives to make such inspections
of the Assets and Properties of the GP and U.S. Propane as they may reasonably
require to verify the accuracy of any representation or warranty contained in
Article 4 and (iii) shall furnish the Acquirer and their respective authorized
representatives with such financial and operating data and other information
with respect to the GP, U.S. Propane and NewLP as the Acquirer may from time to
time reasonably request; provided, however, that the Venturers shall have the
right to have a representative present at all times of any such inspections or
examinations conducted at the offices or other facilities of the GP or U.S.
Propane; and, provided further, however, that the Venturers shall not be
required to cause the GP, U.S. Propane or NewLP to disclose or make available to
the Acquirer any information or data the disclosure of which would violate any
confidential or non-disclosure obligation (other than any obligation exclusively
between or among one or more of the parties to this Agreement) to which the
party may be subject, provided that such party will use its reasonable
commercial efforts to limit the applicability of any confidential or
non-disclosure obligation to the extent reasonably practicable, including by (1)
obtaining a waiver thereof or (2) obtaining assurances from the Acquirer that
such information will remain confidential.

         (a) Acquirer agrees that at any time during the period commencing on
the Closing Date and ending on November 6, 2009 NewLP and its Affiliates and
representatives shall have reasonable access to inspect and copy all books and
records of U.S. Propane relating to the Contributed Interests and Transferred
Interests (as such terms are defined in the Original Contribution Agreement) to
the extent that such access may reasonably be required in connection with
matters relating to or affected by the operation of the Business (as such term
is defined in the Original Contribution Agreement) prior to the Closing. U.S.
Propane shall, and shall cause the Heritage Parties to, afford such access upon
receipt of reasonable advance notice and during normal business hours. If U.S.
Propane or any of the Heritage Entities desire to dispose of any such books and
records prior to the expiration of such period, Acquirer agrees that U.S.
Propane shall, and shall cause such Heritage Party to, give NewLP a reasonable
opportunity, at its expense, to segregate and remove such books and records as
they select. NewLP shall be solely responsible for any costs or expenses
incurred by it pursuant to this Section 7.1(b).

         7.2 MAINTENANCE OF BOOKS AND RECORDS; FINANCIAL STATEMENTS; REPORTS;
ETC. Between the date hereof and the Closing, the GP and U.S. Propane shall keep
adequate records and books of account with respect to each such Person's
business activities in which proper entries are made in all material respects in
accordance with GAAP reflecting all of their respective financial transactions.
The GP and U.S. Propane shall furnish to the Acquirer promptly after the sending
or filing thereof, as the case may be, copies of any financial statements or
reports that the GP or U.S. Propane has made available to its partners or
members.

         7.3 PUBLIC ANNOUNCEMENTS. The GP, U.S. Propane, NewLP, the Venturers,
the Acquirer and their respective Affiliates, will consult with each other
before issuing, and provide each other

                                       30

<PAGE>

the opportunity to review and comment upon, any press release or other public
statement with respect to the transactions contemplated by this Agreement and
the other Operative Documents and shall not issue any such press release or make
any such public statement without the advance approval of the other party
following such consultation (such approval not to be unreasonably withheld,
delayed or conditioned), except as each party may determine is required by
Applicable Law, court process or by the requirements of any securities exchange.

         7.4 CONDUCT AND PRESERVATION OF THE BUSINESS OF THE GP, U.S. PROPANE
AND OTHER ENTITIES. Except as expressly provided in this Agreement and the
Operative Documents or except as described in Schedule 7.4, between the date
hereof and the Closing the Venturers and, following its formation, NewLP shall
(a) cause the GP and U.S. Propane to conduct the respective businesses of the GP
and U.S. Propane substantially as it is being conducted on the date hereof; (b)
use their commercially reasonable efforts to cause the GP and U.S. Propane to
preserve, maintain and protect the Assets and Properties of the GP and U.S.
Propane and their respective businesses consistent with available resources; and
(c) use their commercially reasonable efforts to cause the GP and U.S. Propane
to preserve intact the business organization of the GP and U.S. Propane and
their respective businesses, consistent with its available resources, to keep
available the services of the employees of the GP and U.S. Propane and to
maintain existing relationships with suppliers, contractors, distributors,
customers and others having business relationships with the GP and U.S. Propane.

         7.5 RESTRICTIONS ON CERTAIN ACTIONS OF THE GP, U.S. PROPANE AND OTHER
ENTITIES. Without limiting the generality of Section 7.4, except as otherwise
expressly contemplated by this Agreement and the Operative Documents, from and
after the date hereof and until the Closing Date, without the approval of the
Acquirer, with respect to the business of the GP and U.S. Propane:

         (a) None of the GP, U.S. Propane, any of the Venturers or, after its
formation, NewLP shall agree to sell, transfer or otherwise dispose, or grant or
agree to grant an option to purchase, sell, transfer, or otherwise dispose of
any Securities. Notwithstanding anything in this Section 7.5(b) or elsewhere in
this Agreement, the Venturers may cause the GP or U.S. Propane, at any time or
from time to time to distribute to their respective owners cash or cash
equivalents, to the extent that Current Assets exceed Current Liabilities at
such time.

         (b) Except as set forth on Schedule 7.5 or as otherwise contemplated in
this Agreement or the Operative Documents, none of the Venturers nor, after its
formation, NewLP shall cause or permit any of the GP or U.S. Propane to:

                           (i)      make any expenditures outside the ordinary
                  course of business consistent with past practice which,
                  individually or in the aggregate, exceed $20,000;

                           (ii)     make any material change in the ongoing
                  operations of the business of such entity;

                           (iii)    create, incur, guarantee or assume any
                  Indebtedness;

                                       31

<PAGE>

                           (iv)     mortgage or pledge any of the securities or
                  the Assets and Properties of any such entity or create or
                  suffer to exist any Encumbrance thereupon, other than
                  Permitted Encumbrances;

                           (v)      sell, lease, transfer or otherwise dispose
                  of, directly or indirectly, any of the Assets and Properties
                  of any such entity;

                           (vi)     enter into any lease, contract, agreement,
                  commitment, arrangement or transaction relating to the Assets
                  and Properties of any such entity other than in the ordinary
                  course of business;

                           (vii)    amend, modify or change any existing lease
                  or contract, other than in the ordinary course of the business
                  consistent with past practice;

                           (viii)   waive, release, grant or transfer any rights
                  of value relating to the business of such entity, other than
                  in the ordinary course of business consistent with past
                  practice;

                           (ix)     hire any employees other than in the
                  ordinary course of business consistent with past practice;

                           (x)      delay payment of any account payable or
                  other liability relating to the business of such entity beyond
                  the later of its due date or the date when such liability
                  would have been paid in the ordinary course of business
                  consistent with past practice, unless such delay is due to a
                  good faith dispute as to liability or amount;

                           (xi)     to the extent commercially practicable,
                  permit any current insurance or reinsurance or continuation
                  coverage to lapse if such policy insures risks, contingencies
                  or liabilities (including product liability) related to the
                  business of such entity;

                           (xii)    except as set forth in this Section 7.5,
                  take any action which would make any of the representations or
                  warranties of any of the Venturers untrue as of any time from
                  the date of this Agreement to the date of the Closing, or
                  would result in any of the conditions to Closing set forth in
                  this Agreement not being satisfied;

                           (xiii)   authorize or propose, or agree in writing or
                  otherwise take, any of the actions described in this Section
                  7.5;

                           (xiv)    merge into or with or consolidate with any
                  other Person or acquire all or substantially all of the
                  business or assets of any other Person;

                           (xv)     purchase any securities of any Person;

                                       32

<PAGE>

                           (xvi)    take any action or enter into any commitment
                  with respect to or in contemplation of any liquidation,
                  dissolution, recapitalization, reorganization, or other
                  winding up of the business of such entity;

                           (xvii)   create any employee benefit plans (within
                  the meaning of Section 3(3) of ERISA) or any other employee
                  benefit plan or program not subject to ERISA, except as
                  required by law; or

                           (xviii)  enter into or take any action in connection
                  with hedges, trades or swaps of any commodity.

         (c) The Acquirer shall not take any action which would make any of the
representations and warranties of the Acquirer untrue as of any time from the
date of this Agreement to the date of Closing, or would result in any of the
conditions to Closing set forth in this Agreement not being satisfied.

         7.6 UPDATING SCHEDULES. The GP, U.S. Propane and the Venturers will,
promptly upon becoming aware of any fact, matter, circumstance or event, which
fact, matter, circumstance or event arose either (i) on or prior to the date
hereof (a "Pre-signing Event") or (ii) after the date hereof but prior to the
Closing (a "Post-Signing Event"), in any case, requiring supplementation or
amendment of the schedules provided by the Venturers in the Disclosure Schedules
of the Venturers, supplement or amend such schedules to this Agreement to
reflect any fact, matter, circumstance or event, which, if existing, occurring
or known on the date of this Agreement, would have been required to be set forth
or described in such schedules which were or have been rendered inaccurate
thereby. Notwithstanding the immediately preceding sentence, any such
supplements or amendments must be made prior to such date on which the last of
the conditions to Closing set forth in Sections 8.1 and 8.2 have been satisfied
or waived by the party or parties entitled to waive the same, it being the
intention of the parties that such schedules may not be amended within 72 hours
prior to the Closing. All supplements and amendments to the schedules provided
by the Venturers are provided for the information of the Acquirer only and no
such supplement or amendment to the schedules shall (i) amend or supplement the
representations and warranties (and corresponding schedules) made as of the date
hereof or (ii) have any effect for the purpose of determining (A) satisfaction
of the conditions set forth in Article 8 hereof or (B) compliance by the GP,
U.S. Propane and the Venturers with their respective covenants and agreements
set forth herein; provided, however, that if the Closing occurs the Disclosure
Schedules as so supplemented or amended as of the Closing with respect to
Pre-Signing Events and Post-Signing Events shall be deemed to be the Disclosure
Schedules for purposes of determining whether or not any breach of the
representations and warranties of any of the Venturers has occurred.

         7.7 TAX REPORTING. The parties intend that this Agreement effect a sale
by U.S. Propane of the Retained Assets, including a general partner interest in
Heritage MLP and a general partner interest in Heritage OLP. The parties have
agreed to the transactions contemplated hereby in order to achieve the economic
and Tax consequences of such sales. In furtherance thereof, the parties agree to
report for federal income tax purposes the Tax consequences of the transactions
contemplated by this Agreement in a manner that is consistent with the form (and

                                       33

<PAGE>

order) of the transactions described in Article 3, and in particular agree to
report the federal income tax consequences of such transactions as follows:

         (a) Each of US Propane and the GP is a partnership immediately prior to
the transaction for which provision is made in Section 3.2.

         (b) After the transfer of all of the equity in the GP to NewGP and the
transfer of all of the equity of U.S. Propane to NewLP as provided in Section
3.2, NewGP will be the continuation of the GP (that is, the same partnership for
federal income tax purposes as) and NewLP will be the continuation of (that is,
the same partnership for federal income tax purposes as) U.S. Propane, and the
GP and U.S. Propane are disregarded from and after such transfer until (at
least) all of the transactions contemplated in this Agreement have occurred.

         (c) The transfer of certain assets from U.S. Propane to NewLP and the
assumption by NewLP of certain liabilities of U.S. Propane, as provided in
Section 3.3, are each disregarded.

         (d) The purchase by Acquirer, as provided in Section 3.4, of the
Securities is treated as the purchase of the Assets and Properties of U.S.
Propane. The parties agree that the fair market value of each of the then Assets
and Properties of U.S. Propane is as set out in Schedule 7.7. Each of the
parties shall use such fair market values for all tax reporting purposes.
Further, the Parties agree that in determining the taxable income of each of the
Parties attributable to their ownership of interests in the Heritage MLP and
Heritage OLP for the taxable year of the Heritage MLP and Heritage OLP including
the Closing Date, Acquirer shall cause Heritage MLP and Heritage OLP to close
their books as of the Closing Date and to allocate the taxable income of
Heritage MLP and Heritage OLP for the period prior to the Closing Date allocable
to the Retained Assets to NewLP and the taxable income of Heritage MLP and
Heritage OLP allocable to the Retained Assets for the period beginning with the
Closing Date through the end of the taxable year to Acquirer. To the extent that
Heritage MLP or Heritage OLP is unable to close its books as of the Closing
Date, the Parties agree to cause the tax results to the Parties to equal as
nearly as possible those that would have resulted if the books of Heritage MLP
and Heritage OLP had been closed as provided in the preceding sentence.

In addition, each party agrees to so report the transactions for all other Tax
purposes in a manner consistent with the foregoing provisions of this Section
7.7 unless such party receives a written opinion of counsel or its regular tax
adviser that one or more of such positions is not permitted under then
Applicable Law, in which case such party may then so report the transactions in
a manner that is inconsistent with the foregoing only after providing such
written opinion to the other parties hereto and consultation thereafter with
such other parties. The requirements of the foregoing (taking into account the
effect of the preceding sentence) are referred to herein as the "Reporting
Position." If any Tax authority proposes to characterize the transactions
contemplated in this Agreement as to a party in a manner that is inconsistent
with the Reporting Position, then such party agrees to contest such proposed
characterization in good faith using commercially reasonable efforts to defend
the Reporting Position and further agrees to keep the other parties hereto
reasonably informed as to the status of any such controversy. Likewise, the
Parties agree that Heritage OLP and Heritage MLP will allocate to NewLP taxable
income attributable to the amounts paid to NewLP pursuant to Section 3.3(f).

                                       34

<PAGE>

         7.8 FEES AND EXPENSES. Except as otherwise expressly provided in this
Agreement, the Venturers shall cause NewLP to pay the out-of-pocket fees and
expenses of the GP, U.S. Propane, NewLP and the Venturers, on the one hand, and
the Acquirer shall pay its out-of-pocket fees and expenses, on the other hand,
incurred in connection with the negotiation, execution and delivery of this
Agreement and the transactions contemplated hereby, whether or not the Closing
shall have occurred. Notwithstanding the foregoing, all such out-of-pocket fees
and expenses incurred by the GP or U.S. Propane for time periods after the
Closing shall be paid by the GP, U.S. Propane or the Acquirer.

         7.9 ACTIONS BY PARTIES. Each party hereto agrees to use its
commercially reasonable efforts to satisfy the conditions to Closing set forth
in Article 8 and to use its commercially reasonable efforts to refrain from
taking any action within its control that would cause a breach of a
representation, warranty, covenant or agreement set forth in this Agreement.
Each party hereto shall take all commercially reasonable steps necessary or
desirable, and proceed diligently and in good faith and shall use all reasonable
efforts to, as promptly as practicable, consummate the transactions contemplated
by this Agreement and the Operative Documents.

         7.10 EMPLOYEES OF U.S. PROPANE. The Acquirer shall not, at any time
prior to 60 days after the Closing Date, effectuate a "plant closing" or "mass
layoff" as those terms are defined in the Worker Adjustment and Retraining
Notification Act ("WARN") affecting any employee of U.S. Propane or GP without
fully complying with the notice and other applicable requirements of WARN.

         7.11 THIRD PARTY BENEFICIARY. The Acquirer will enforce the capital
commitments of the members of the Acquirer to make capital contributions to the
Acquirer, and will not permit the waiver, amendment or termination of (i) any of
such capital commitments, or (ii) any provision of the limited liability
agreement of the Acquirer that provides that the Venturers are third party
beneficiaries of the obligations of the members to make such capital
commitments.

         7.12 CONFIDENTIALITY AND TAX SHELTER REGULATIONS. Except as reasonably
necessary to comply with applicable securities laws and notwithstanding anything
in this Agreement to the contrary (including the confidentiality provisions set
forth in Section 7.3 and Section 7.4) or in any other agreement to which a party
hereto is bound, the parties hereto (and each employee, representative, or other
agent of any of the parties) are expressly authorized to disclose to any and all
persons, without limitation of any kind, the U.S. federal income "tax treatment"
and "tax structure" (as those terms are defined in Treas. Reg. Sections
1.6011-4(c)(8) and (9), respectively) of the transactions contemplated by this
Agreement and all materials of any kind (including opinions or other tax
analyses) that are provided to such parties relating to such "tax treatment" and
"tax structure" of the transactions contemplated by this Agreement. For these
purposes, "tax structure" is limited to facts relevant to the U.S. federal
income tax treatment of the transaction described herein.

         7.13 TRADEMARKS, LOGOS, ETC. The Heritage Entities shall have the right
to continue to use all trademarks, service marks, trade names, service names and
logos (i) of AGL Propane Services, Inc., a Delaware corporation, United Cities
Propane Gas L.L.C., a Delaware limited liability company, Peoples Gas Company,
L.L.C., a Delaware limited liability company and Piedmont Propane Company, a
North Carolina corporation and (ii) that Heritage MLP and

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Heritage OLP were granted the right to use pursuant to that certain Contribution
Agreement dated June 15, 2000 among U.S. Propane, Heritage MLP and Heritage OLP,
except as specifically set forth on Schedule 7.13 (the "Trademarks"), until the
first anniversary of the Closing. From and after such first anniversary, the
Heritage Entities shall cease all use of the Trademarks, including all use of
the name "Peoples Gas."

         7.14 VOTE OF COMMON UNITS. Each of the Venturers hereby covenants and
agrees to vote, and to cause NewLP to vote at each meeting or other vote of the
holders of Common Units of Heritage MLP, with respect thereto, all of the Common
Units, if any, that such Venturer or NewLP may own as of the record date
established for determining the holders of Common Units entitled to vote at such
meeting or in such other vote for approval of the transactions contemplated
hereby and for approval of the conversion of the Class D Subordinated Units (as
defined in Amendment No. 5 to the Heritage MLP Partnership Agreement) to Common
Units on a one-for-one basis and otherwise on the terms described in Amendment
No. 5 to the Heritage MLP Partnership Agreement and any amendment to the
Heritage MLP Partnership Agreement related thereto.

         7.15 PRECLOSING TRANSACTIONS. Prior to the Closing, the Venturers shall
cause the transactions described in Article III that are to be effected prior to
the Closing to be so effected.

                                  ARTICLE VIII
                              CONDITIONS TO CLOSING

         8.1 CONDITIONS TO CLOSING OF THE ACQUIRER. The obligations of the
Acquirer to consummate the transactions contemplated by this Agreement at the
Closing shall be subject to the fulfillment by each of the GP, U.S. Propane and
each of the Venturers on or prior to the Closing Date of each of the following
conditions (all or any of which may be waived in whole or in part by the
Acquirer in its sole discretion):

         (a) Representations and Warranties True. The representations and
warranties of the Venturers set forth in this Agreement shall be true and
correct in all material respects on and as of the Closing Date (other than those
that are qualified by a reference to materiality or Material Adverse Effect,
which representations and warranties shall have been true and correct in all
respects as so qualified), and any representations and warranties made as of a
specified date earlier than the Closing Date shall have been true and correct in
all material respects on and as of such earlier date (other than those that are
qualified by a reference to materiality or Material Adverse Effect, which
representations and warranties shall have been true and correct in all respects
as so qualified).

         (b) Covenants and Agreements Performed. Each of the GP, U.S. Propane
and each of the Venturers shall have performed and complied with, in all
material respects, all covenants and agreements required by this Agreement to be
performed or complied with by it, and each of the Venturers shall have caused
NewLP to have performed and complied with, in all material respects, all
covenants and agreements required by this Agreement to be performed or complied
with by NewLP.

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<PAGE>

         (c) Certificates. The Acquirer shall have received a certificate from
(i) each of the Venturers, in substantially the form set forth in Exhibit
8.1(c)(i), dated the Closing Date, representing and certifying that (A) the
conditions set forth in Section 8.1(a) have been fulfilled and (B) except for
matters relating to the Heritage Entities disclosed pursuant to the Contribution
Agreement and except for the effects of general economic conditions or weather,
seasonality or other conditions affecting the industry in which any of the
Heritage Entities conduct business, to each such Venturer's Knowledge, since the
Financial Statement Date there has not been any event or condition relative to
any of the Heritage Entities having, or reasonably expected to have, a Material
Adverse Effect on the GP or U.S. Propane, (ii) each of the GP, U.S. Propane and
each of the Venturers, in substantially the form set forth in Exhibit
8.1(c)(ii), dated the Closing Date, representing and certifying that the
conditions set forth in Section 8.1(b), have been fulfilled and a certificate as
to the incumbency of the officers executing this Agreement on behalf of such
party.

         (d) Legal Proceedings. No preliminary or permanent injunction or other
order, decree or ruling issued by a Governmental Authority, and no statute,
rule, regulation or executive order promulgated or enacted by a Governmental
Authority, shall be in effect that restrains, enjoins, prohibits or otherwise
makes illegal the consummation of the transactions contemplated by this
Agreement or the Operative Documents. No Proceeding before a Governmental
Authority shall be pending (A) seeking to restrain or prohibit the consummation
of the transactions contemplated by this Agreement or the Operative Documents or
(B) that could reasonably be expected, if adversely determined, to impose any
material limitation on the ability of any of the GP, U.S. Propane, NewLP or any
of the Venturers to consummate the transactions contemplated hereby or by the
Operative Documents.

         (e) Consents. All Consents set forth on Exhibit 8.1(e) shall have been
obtained or made and shall be in full force and effect as to each of the GP,
U.S. Propane, NewLP and each of the Venturers, as applicable, at the time of the
Closing.

         (f) No Material Adverse Effect. Since the date of this Agreement, there
shall not have been any event or condition having a Material Adverse Effect
(excluding for purposes of such determination the effects on the GP and U.S.
Propane of the transactions to be effected prior to Closing pursuant to Article
3).

         (g) Deliveries. Each of the GP, U.S. Propane, NewLP and each of the
Venturers shall have delivered to the Acquirer executed copies of the Operative
Documents and the certificates representing all of the Securities purchased by
the Acquirer hereunder, duly endorsed in blank or accompanied by transfer
powers.

         (h) Contribution Agreement; HHI Purchase Agreement. All conditions to
the closing of the transactions contemplated by the Contribution Agreement
(other than a condition relating to the satisfaction of all conditions to
closing of this Agreement) shall have been satisfied or waived. The HHI Purchase
Agreement shall have been executed and delivered by each of the Persons party
thereto and the closing thereunder shall have occurred.

         (i) Assumption of Assumed Liabilities; Dividend of GP Interests Note.
NewLP shall have delivered to the GP and U.S. Propane the Transfer Instruments
whereby NewLP agrees to

                                       37

<PAGE>

assume all of the Assumed Liabilities, and U.S. Propane shall have declared and
paid the GP Interests Note as a dividend to NewGP and NewLP.

         (j) Resignations. Each of H. Michael Krimbill, James E. Bertelsmeyer,
Andrew W. Evans, Royston K. Eustace, William N. Cantrell, Richard T. O'Brien,
David J. Dzuricky, J. Patrick Reddy, Kevin M. O'Hara and J.D. Woodward (or their
respective successors as members of the Board of Directors of the GP) shall
have, and, if requested in writing by Acquirer not less than three business days
prior to Closing, each of Bill W. Byrne, Stephen L. Cropper and J. Charles
Sawyer shall have, tendered their resignations as a member of the GP's Board of
Directors, effective as of the Closing.

         (k) HSR Waiting Period. If applicable, the waiting period under the HSR
Act applicable to the consummation of the transactions contemplated hereby shall
have expired or been terminated without any adverse condition attached thereto.

         8.2 CONDITIONS TO CLOSING OF NEWLP AND THE VENTURERS. The obligations
of NewLP and each of the Venturers to consummate the transactions contemplated
by this Agreement at the Closing shall be subject to the fulfillment by the
Acquirer on or prior to the Closing Date of each of the following conditions
(all or any of which may be waived in whole or in part by the Venturers in their
sole discretion):

         (a) Representations and Warranties True. The representations and
warranties of the Acquirer set forth in this Agreement shall be true and correct
in all material respects on and as of the Closing Date (other than those that
are qualified by a reference to materiality or Material Adverse Effect, which
representations and warranties shall have been true and correct in all respects
as so qualified), and any representations and warranties made as of a specified
date earlier than the Closing Date shall have been true and correct in all
material respects on and as of such earlier date (other than those that are
qualified by a reference to materiality or Material Adverse Effect, which
representations and warranties shall have been true and correct in all respects
as so qualified).

         (b) Covenants and Agreements Performed. The Acquirer shall have
performed and complied with, in all material respects, all covenants and
agreements required by this Agreement to be performed or complied with by it.

         (c) Certificates. Each of the Venturers shall have received a
certificate from the Acquirer, in substantially the form set forth in Exhibit
8.2(c), dated the Closing Date, representing and certifying that the conditions
set forth in Sections 8.2(a) and 8.2(b) have been fulfilled and a certificate as
to the incumbency of the officers executing this Agreement on behalf of the
Acquirer.

         (d) Legal Proceedings. No preliminary or permanent injunction or other
order, decree or ruling issued by a Governmental Authority, and no statute,
rule, regulation or executive order promulgated or enacted by a Governmental
Authority, shall be in effect that restrains, enjoins, prohibits or otherwise
makes illegal the consummation of the transactions contemplated by this
Agreement or the Operative Documents. No Proceeding before a Governmental
Authority shall be pending (A) seeking to restrain or prohibit the consummation
of the transactions contemplated

                                       38

<PAGE>

by this Agreement or the Operative Documents or (B) that could reasonably be
expected, if adversely determined, to impose any material limitation on the
ability of any of the Acquirer to consummate the transactions contemplated
hereby or by the Operative Documents.

         (e) Consents. All Consents set forth on Exhibit 8.2(e) shall have been
obtained or made and shall be in full force and effect as to the Acquirer at the
time of the Closing.

         (f) Deliveries. The Acquirer and each Person that is a party thereto
(other than the GP, U.S. Propane, NewLP or any of the Venturers) shall have
delivered executed copies of the Operative Documents to the GP, U.S. Propane,
NewLP and the Venturers.

         (g) Contribution Agreement; HHI Purchase Agreement. The Contribution
Agreement shall have been executed and delivered by each of the Persons party
thereto and all conditions to closing therein (other than a condition relating
to the satisfaction of all conditions to closing of this Agreement and the HHI
Purchase Agreement) shall have been satisfied or waived. The HHI Purchase
Agreement shall have been executed and delivered by each of the Persons party
thereto and the closing thereunder shall have occurred.

         (h) Payment. NewLP shall have received full payment in cash or
immediately available funds (wired to the account of NewLP in accordance with
wiring instructions to be specified by NewLP not less than three Business Days
prior to the Closing) of the Purchase Price from the Acquirer in consideration
for the transfer, assignment and conveyance of the Securities.

         (i) HSR Waiting Period. If applicable, the waiting period under the HSR
Act applicable to the consummation of the transactions contemplated hereby shall
have expired or been terminated without any adverse condition attached thereto.

                                   ARTICLE IX
                        TERMINATION, AMENDMENT AND WAIVER

         9.1 TERMINATION. This Agreement may be terminated and the transactions
contemplated hereby abandoned by written notice at any time prior to the Closing
in any of the following manners:

         (a) concurrently with any permitted termination of the Contribution
Agreement; provided, however, that if the Contribution Agreement is terminated
due to a breach or default (i) by La Grange (as such term is defined in the
Contribution Agreement) of its obligations thereunder or a failure by La Grange
to satisfy its conditions to closing thereunder, this Agreement shall not be
terminated automatically but may be terminated by election of the Venturers
furnished in writing to the other parties hereto, or (ii) by Heritage MLP or
Heritage OLP of their respective obligations thereunder or a failure by Heritage
MLP or Heritage OLP to satisfy their conditions to closing thereunder, this
Agreement shall not be terminated automatically but may be terminated by
election of the Acquirer furnished in writing to the other parties hereto;

         (b) by written consent of each of the parties to this Agreement;

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<PAGE>

         (c) by any party if the Closing has not occurred on or before February
15, 2004, unless such failure to close resulted from a breach of this Agreement
by the party or its Affiliate seeking to terminate this Agreement pursuant to
this Section 9.1(c);

         (d) by any party if (i) there is any statute, rule or regulation that
makes consummation of the transactions contemplated hereby illegal or otherwise
prohibited or (ii) a Governmental Authority (A) has issued an order, decree or
ruling or taken any other action restraining, enjoining or otherwise prohibiting
the consummation of the transactions contemplated hereby, and such order,
decree, ruling or other action shall have become final and nonappealable or (B)
has made any order, decree, ruling or other action consenting to or approving
consummation of the transactions contemplated hereby contingent or conditional
in any manner that has a Material Adverse Effect, which order, decree, ruling or
other action shall have become final and nonappealable;

         (e) by any party, if there has been any violation or breach by any
other party (other than an Affiliate or related party of the first party) of any
representation, warranty, covenant or agreement contained in this Agreement that
has rendered impossible the satisfaction of any condition to the obligations of
such other party set forth in Section 8.1 or Section 8.2 and such violation or
breach has neither been cured within 30 days after notice by such first party to
the other party nor waived by the first party;

         (f) by any party, if any other event shall occur that shall render the
satisfaction of any condition to the obligations of any other party (other than
an Affiliate or related party of the first party) impossible and such condition
has not been waived by the other parties; or

         (g) by the Acquirer, if any amendment is made to any schedule in
accordance with Section 7.6 that in the Acquirer's reasonable judgment (i) with
respect to any Pre-Signing Event, is material or (ii) with respect to any
Post-Signing Event, the effect of the event or circumstance to which such
amendment relates materially impairs the financial condition, business,
properties, prospects, net worth or results of operations of the GP or U.S.
Propane.

         9.2 EFFECT OF TERMINATION. If this Agreement is terminated pursuant to
Section 9.1 by any party, written notice thereof shall forthwith be given to the
other parties specifying the provision hereof pursuant to which such termination
is made. If this Agreement is terminated for any reason, this Agreement shall
become void and have no effect, except that (a) the agreements contained in this
Section 9.2 and in Section 7.8 shall survive the termination hereof, (b) nothing
contained in this Section 9.2 shall relieve any party from liability for any
willful breach of this Agreement and (c) nothing shall relieve any party from
any liability for a breach of its obligations hereunder existing at the time of
such termination. If this Agreement is terminated (y) because the Acquirer is
unable to arrange the funding necessary to consummate the Closing, the Acquirer
agrees to pay $500,000 to the Venturers or (z) by the Acquirer pursuant to
Section 9.1(g) because of an amendment to any schedule with respect to a
Pre-Signing Event, the Venturers agree to pay $500,000 to the Acquirer. The
parties stipulate and agree that (a) the $500,000 amount referred to in the
immediately preceding sentence shall constitute liquidated damages payable in
lieu of any other costs or expenses incurred by a party upon such termination,
shall constitute the sole remedy upon a termination in accordance with clause
(y) or (z) of the preceding sentence and (b) they each believe that such amounts
constitute a fair and

                                       40

<PAGE>

reasonable resolution if this Agreement is terminated under the circumstances
referred to in such clauses (y) or (z).

         9.3 AMENDMENT. This Agreement may not be amended except by an
instrument in writing signed by each of the parties.

         9.4 WAIVER. Any party may, on behalf of itself only and not on behalf
of any other party, (a) waive any inaccuracies in the representations and
warranties of any other party (other than an Affiliate or related party of the
first party) contained herein or in any document, certificate or writing
delivered pursuant hereto, (b) waive compliance by any other party (other than
an Affiliate or related party of the first party) with any of its agreements
contained herein and (c) waive fulfillment of any conditions to its obligations
contained herein. Any agreement on the part of a party to any such waiver shall
be valid only if set forth in an instrument in writing signed by or on behalf of
such party. No failure or delay by a party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.

                                   ARTICLE X
                  INDEMNIFICATION; SURVIVAL OF REPRESENTATIONS

         10.1     INDEMNIFICATION OBLIGATIONS OF NEWLP AND THE VENTURERS. NewLP
and, if NewLP is unable to satisfy its obligations hereunder and, with respect
to each Venturer, only to the extent that a Venturer has received after the
Closing from NewLP any distribution of cash or property, each such Venturer
shall, except for indemnification in respect of the clause (b) below with
respect to the last sentence of Section 4.6, which indemnification shall only be
several as among NewLP and each of the Venturers, indemnify the Acquirer
Indemnified Parties, as the case may be, and hold the Acquirer Indemnified
Parties harmless from, against and in respect of any and all Losses arising out
of, based upon or resulting from:

         (a) the breach of any representation or warranty of any Venturer
contained in or made pursuant to this Agreement (other than those in Section
4.2, Section 4.3, the last sentence of Section 4.6 or in Section 4.24);

         (b) the breach of any representation or warranty of any Venturer
contained in or made pursuant to Section 4.2, Section 4.3, the last sentence of
Section 4.6 or in Section 4.24;

         (c) the breach by any Venturer or the failure of any of the Venturers
to observe or perform in any material respect, any of its covenants or
agreements contained in this Agreement or any other Operative Document; and

         (d) the Assumed Liabilities.

Notwithstanding the foregoing, NewLP and the Venturers will not have any
obligation to indemnify the Acquirer Indemnified Parties for Losses under
Section 10.1(a) unless and until the aggregate amount of all such Losses under
Section 10.1(a) exceeds $300,000 (regardless of whether, in the case of third
party actions, suits or proceedings with respect to any of the foregoing, the
Venturers may have a meritorious defense), at and after which time NewLP and

                                       41

<PAGE>

the Venturers shall be liable for all Losses in excess of $300,000 and which do
not in the aggregate exceed $3,000,000. Notwithstanding anything else herein to
the contrary, none of the Venturers shall be required pursuant to this Section
10.1 to make any payment to any of the Acquirer Indemnified Parties for Losses
unless such Acquirer Indemnified Party has first sought to collect payment of
such Losses from NewLP and NewLP has failed or refused to make payment thereof
to the extent required under this Article 10, after which such Acquirer
Indemnified Party may, only to the extent specified in this Section 10.1, seek
payment of such Losses from a Venturer (unless the failure or refusal of NewLP
to make such payment is due to a good faith dispute regarding such Acquirer
Indemnified Party's right under this Section 10.1 to indemnification for such
Losses). The rights and remedies of the Acquirer Indemnified Parties based upon,
arising out of or otherwise in respect of any clause of this Section 10.1 or any
representation, warranty or covenant in this Agreement or other Operative
Documents shall in no way be limited by the fact that the act, omission,
occurrence or other state of facts upon which any such claim is based may also
be the subject matter of any representation, warranty or covenant in this
Agreement or other Operative Document that would not give rise to any rights or
remedies of the Acquirer Indemnified Parties.

         10.2     INDEMNIFICATION OBLIGATIONS OF THE ACQUIRER. The Acquirer,
shall indemnify the Venturer Indemnified Parties, as the case may be, and hold
the Venturer Indemnified Parties harmless from, against and in respect of any
and all Losses arising out of, based upon or resulting from:

         (a) the breach of any representation or warranty of the Acquirer
contained in or made pursuant to this Agreement (other than those in the second
and third sentences of Section 5.1 and in Section 5.3 and Section 5.4);

         (b) the breach of any representation or warranty of Acquirer contained
in or made pursuant to the second and third sentences of Section 5.1, or in
Section 5.3 or Section 5.4;

         (c) the breach by the Acquirer or failure of the Acquirer or any of its
Affiliates to observe or perform in any material respect, any of their covenants
or agreements contained in this Agreement or any other Operative Document; and

         (d) the Retained Liabilities.

Notwithstanding the foregoing, the Acquirer will not have any obligation to
indemnify the Venturer Indemnified Parties for Losses under Section 10.2(a)
unless and until the aggregate amount of all such Losses under Section 10.2(a)
exceeds $300,000 of the Purchase Price (regardless of whether, in the case of
third party actions, suits or proceedings with respect to any of the foregoing,
the Acquirer may have a meritorious defense), at and after which time the
Acquirer shall be liable for all Losses in excess of $300,000 and which do not
in the aggregate exceed $3,000,000. The rights and remedies of the Venturer
Indemnified Parties based upon, arising out of or otherwise in respect of any
clause of this Section 10.2 or any representation, warranty or covenant in this
Agreement or other Operative Document shall in no way be limited by the fact
that the act, omission, occurrence or other state of facts upon which any such
claim is based may also be the subject matter of any representation, warranty or
covenant in this

                                       42

<PAGE>

Agreement or other Operative Document that would not give rise to any rights or
remedies of the Venturer Indemnified Parties.

         10.3     INDEMNIFICATION PROCEDURES.

         (a) Promptly upon receipt by a party indemnified under this Article 10
(an "Indemnified Party") of notice of the commencement of any action against
such Indemnified Party (a "Third Party Action") in respect of which indemnity or
reimbursement may be sought against a party or parties required to make
indemnification hereunder (an "Indemnifying Party"), such Indemnified Party
shall notify the Indemnifying Party in writing of the commencement of such Third
Party Action, but the failure so to notify the Indemnifying Party shall not
relieve it of any liability which it may have to any Acquirer Indemnified Party
under Section 10.1 or any Venturer Indemnified Party under Section 10.2, as
applicable, unless such failure actually and materially adversely affects the
defense of such Third Party Action. In case notice of commencement of any such
Third Party Action shall be given to the Indemnifying Party as above provided,
the Indemnifying Party shall be entitled to participate in and to assume the
defense of such action at its own expense, with counsel chosen by it that is
reasonably satisfactory to the Indemnified Party; provided, however, that:

                  (i)      the Indemnified Party shall be entitled to
         participate in the defense of such Third Party Action and to employ
         counsel at its own expense to assist in the handling of such Third
         Party Action (provided that the Indemnified Party shall be entitled to
         reimbursement for the reasonable out-of-pocket expenses for such
         counsel in accordance with subclauses (A) and (B) below in this Section
         10.3(a));

                  (ii)     the Indemnifying Party shall obtain the prior written
         approval of the Indemnified Party, which approval shall not be
         unreasonably withheld or delayed, before entering into any settlement
         of such Third Party Action or ceasing to defend against such Third
         Party Action, if pursuant to or as a result of such settlement or
         cessation, injunctive or other equitable relief would be imposed
         against the Indemnified Party or the Indemnified Party would be
         adversely affected thereby;

                  (iii)    no Indemnifying Party shall consent to the entry of
         any judgment or enter into any settlement that does not include as an
         unconditional term thereof the giving by each claimant or plaintiff to
         each Indemnified Party of a release from all liability in respect of
         such Third Party Action; and

                  (iv)     the Indemnifying Party shall not be entitled to
         control the defense of any Third Party Action unless within 15 days
         after receipt of such written notice from the Indemnified Party, the
         Indemnifying Party confirms in writing its responsibility to indemnify
         the Indemnified Party with respect to such Third Party Action and
         reasonably demonstrates that it will be able to pay the full amount of
         the reasonably expected Losses in connection with any such Third Party
         Action.

Except as set forth in the following sentence, after written notice by the
Indemnifying Party to the Indemnified Party of its election to assume control of
the defense of any such Third Party Action in accordance with the foregoing, (i)
the Indemnifying Party shall not be liable to the

                                       43

<PAGE>

Indemnified Party hereunder for any fees and expenses of counsel subsequently
incurred by the Indemnified Party attributable to defending against such Third
Party Action, and (ii) as long as the Indemnifying Party is reasonably
contesting such Third Party Action in good faith, the Indemnified Party shall
not admit any liability with respect to, or settle, compromise or discharge the
claim underlying, such Third Party Action without the prior written consent of
the Indemnifying Party. If (A) the Indemnifying Party does not assume control of
the defense of such Third Party Action in accordance with this Section 10.3(a),
or (B) the Indemnified Party has been advised in writing by counsel that
representation of such Indemnified Party and the Indemnifying Party by the same
counsel would be inappropriate under applicable standards of professional
conduct (in which case the Indemnifying Party shall not have the right to assume
the defense of such Third Party Action on behalf of the Indemnified Party), in
each case the Indemnified Party shall have the right to defend such Third Party
Action in such manner as it may deem appropriate at the cost and expense of the
Indemnifying Party, provided that (i) the Indemnifying Party shall be obligated
to reimburse the Indemnified Parties for the costs and expenses of only a single
counsel for such Third Party Action and any matters related thereto and (ii) the
Indemnified Party shall not settle or resolve such Third Party Action without
the prior written consent of the Indemnifying Party (which consent will not be
unreasonably withheld, conditioned or delayed), and the Indemnifying Party shall
promptly reimburse the Indemnified Party therefor in accordance with this
Article 10. The reimbursement of fees and expenses of counsel required by this
Article 10 shall be made by periodic payments during the course of the
investigation or defense, as and when bills are received or expenses incurred.

         (b) If the Indemnifying Party shall be obligated to indemnify the
indemnified Party pursuant to this Article 10, the Indemnifying Party shall be
subrogated to all rights of the Indemnified Party with respect to the claims to
which such indemnification relates. If an Indemnified Party becomes entitled to
any indemnification from an Indemnifying Party, such indemnification shall be
made in cash upon demand, unless the Indemnifying Party is disputing the right
of such Indemnified Party to indemnification hereunder.

         (c) The right of indemnification pursuant to this Article 10 shall
constitute the sole and exclusive remedy of each of the Parties to this
Agreement and their respective Affiliates, managers, directors, officers,
members, employees and other agents and representatives, other than with respect
to fraud or willful breach by a Party.

         10.4     SURVIVAL. All representations, warranties, covenants and
agreements contained in this Agreement shall survive (and not be affected in any
respect by) the Closing, any investigation conducted by any party and any
information that any party may receive (other than information identified in the
Schedules attached hereto).

                                       44

<PAGE>

         (a) The right to indemnification:

                  (i)      with respect to any breach or violation of any of the
         representations and warranties contained in this Agreement (other than
         those in the last sentence of Section 4.6, or Sections 4.11, 4.18,
         4.22, 4.24 and 5.4), shall survive for one (1) year from the Closing
         Date;

                  (ii)     with respect to any breach of violation of any of the
         representations and warranties contained in the last sentence of
         Section 4.6 and in Sections 4.24 or 5.4, shall survive indefinitely;

                  (iii)    with respect to any breach or violation of any of the
         representations and warranties contained in Sections 4.11, 4.18 and
         4.22, shall survive for the applicable statute of limitations; and

                  (iv)     with respect to all covenants and agreements
         contained in this Agreement, shall survive for the applicable statute
         of limitations (including all periods of extension thereof, whether
         automatic or permissive).

         (b) The expiration of any survival period under this Agreement will not
affect the liability of any Party under this Article 10 for any Losses as to
which a bona fide claim has been asserted prior to the termination of such
survival period.

         10.5     NO SPECIAL OR CONSEQUENTIAL DAMAGES. No party and no
Indemnified Party shall be entitled to recover special, consequential, exemplary
or punitive damages from the other parties or any Indemnifying Party in
connection with any claim for indemnification under this Article 10 or
otherwise, and each party hereby waives any claim or right to special,
consequential, exemplary or punitive damages hereunder, even if caused by the
active, passive, sole, joint, concurrent or comparative negligence, strict
liability, or other fault of any party, other than fraud or intentional
misconduct.

         10.6     LIMITATIONS ON INDEMNIFICATION.

         (a) Neither NewLP nor any of the Venturers shall have any obligation to
indemnify the Acquirer Indemnified Parties hereunder with respect to any breach
of a representation or warranty of the Venturers resulting from a Pre-Signing
Event or Post-Signing Event to the extent that the Disclosure Schedules of the
Venturers to this Agreement were amended or supplemented in accordance with
Section 7.6 to reflect such Pre-Signing Event or Post-Signing Event prior to
Closing. Following the Closing, the determination of whether any of the
Venturers have breached any of their representations or warranties shall be
determined on the basis of the Disclosure Schedules of the Venturers as amended
or supplemented as of the Closing.

         (b) The Acquirer shall not have any obligation to indemnify the
Venturer Indemnified Parties hereunder with respect to any breach of a
representation or warranty of the Acquirer resulting from a Pre-Signing Event or
from a Post-Signing Event to the extent that the Acquirer submits Disclosure
Schedules to the Venturers reflecting such Pre-Signing Event or Post-Signing
Event prior to Closing.

                                       45

<PAGE>

         (c) Following the Closing, the determination of whether the Acquirer
has breached any of its representations or warranties shall be determined on the
basis of the Disclosure Letter of the Acquirer as so amended or supplemented as
of the Closing.

                                   ARTICLE XI
                                  MISCELLANEOUS

         11.1     NOTICES. All notices, requests, demands and other
communications required or permitted to be given or made hereunder by any party
shall be in writing, and shall be delivered either personally, or by registered
or certified mail (postage prepaid and return receipt requested) or by express
courier or delivery service, or by telegram, telefax, telex or similar facsimile
means, to the Parties, at the addresses (or at such other addresses as shall be
specified by the Parties by like notice) set forth below:

         (a) If to the GP, U.S. Propane, NewLP or the Venturers, to:

                  AGL Propane Services, Inc.
                  AGL Energy Corporation
                  10 Peachtree Place
                  Atlanta, Georgia  30309
                  Attention: General Counsel
                  Facsimile: (404) 584-3419

                  United Cities Propane Gas, Inc.
                  c/o Atmos Energy Corporation
                  5430 LBJ Freeway
                  1800 Three Lincoln Centre
                  Dallas, Texas 75240
                  Attention: J. Patrick Reddy
                  Facsimile: (972) 855-3793

                  TECO Propane Ventures, LLC
                  c/o TECO Energy, Inc.
                  702 N. Franklin Street
                  Tampa, Florida 33602
                  Attention: General Counsel
                  Facsimile: (813) 228-4811

                                       46

<PAGE>

                  Piedmont Propane Company
                  1915 Rexford Road
                  Charlotte, North Carolina 28211
                  Attention: David Dzuricky
                             Kevin M. O'Hara
                  Facsimile: (704) 365-8515

                  with a copy to:

                  Andrews Kurth LLP
                  600 Travis Street
                  Houston, Texas 77002
                  Attention: G. Michael O'Leary
                  Facsimile: (713) 220-4285

     (b) If to the Acquirer, to:

                  c/o ETC Holdings, LP
                  2838 Woodside Street
                  Dallas, Texas 75204
                  Attention: Clay Kutch
                  Facsimile: (214) 981.0701

                  with a copy to:

                  Thompson & Knight L.L.P.
                  1700 Pacific Avenue, Suite 3300
                  Dallas, Texas 75201
                  Attention: Jeffrey A. Zlotky
                  Facsimile: (214) 969-1751

Notices and other communications shall be deemed given or made (i) when
received, if sent by telegram, telefax, telex or similar facsimile means
(written confirmation of such receipt by confirmed facsimile transmission being
deemed receipt of communications sent by telefax, telex or similar facsimile
means) and (ii) when delivered and receipted for (or upon the date of attempted
delivery where delivery is refused), if hand delivered, sent by registered or
certified mail or sent by express courier or delivery service, except in the
case of facsimile transmissions received after the normal close of business at
the receiving location, which shall be deemed given on the next Business Day.

                                       47

<PAGE>

         11.2     ENTIRE AGREEMENT. This Agreement and the documents referred to
herein, together with the Schedules and Exhibits hereto (where applicable, as
executed and delivered), and that certain letter agreement, dated September 15,
2003, among Acquirer and the Venturers, constitute the entire agreement between
the Parties with respect to the subject matter hereof and supersede all prior
agreements and understandings, both written and oral, between the Parties with
respect to the subject matter hereof.

         11.3     BINDING EFFECT; ASSIGNMENT; NO THIRD PARTY BENEFIT. This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns. Neither this Agreement nor
any of the rights, interests or obligations hereunder shall be assigned (whether
by operation of law or otherwise) by any party without the prior written consent
of each of the parties, and any purported assignment without such consent shall
be void; provided, however, that Acquirer may assign its rights, interests and
obligations under this Agreement to an Affiliate of Acquirer without the prior
written consent of any of the other parties, but no such assignment shall
relieve the Acquirer of its obligations hereunder. Except as provided in Article
10, nothing in this Agreement, express or implied, is intended to or shall
confer upon any Person other than the parties, and their respective successors
and permitted assigns, any rights, benefits or remedies of any nature whatsoever
under or by reason of this Agreement.

         11.4     SEVERABILITY. If any provision of this Agreement is held to be
unenforceable, this Agreement shall be considered divisible and such provision
shall be deemed inoperative to the extent it is deemed unenforceable, and in all
other respects this Agreement shall remain in full force and effect; provided,
however, that if any such provision may be made enforceable by limitation
thereof, then such provision shall be deemed to be so limited and shall be
enforceable to the maximum extent permitted by Applicable Law.

         11.5     GOVERNING LAW. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Texas,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Texas or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Texas.

         11.6     JURISDICTION. Any legal action, suit or proceeding in law or
equity arising out of or relating to this Agreement or the transactions
contemplated by this Agreement may only be instituted in any state or federal
court located in the State of Texas, and each party agrees not to assert, by way
of motion, as a defense or otherwise, in any such action, suit or proceeding,
any claim that it is not subject personally to the jurisdiction of such court,
that its property is exempt or immune from attachment or execution, that the
action, suit or proceeding is brought in an inconvenient forum, that the venue
of the action, suit or proceeding is improper or that this Agreement, or the
subject matter hereof or thereof may not be enforced in or by such court. Each
party further irrevocably submits to the jurisdiction of any such court in any
such action, suit or proceeding. Any and all service of process and any other
notice in any such action, suit or proceeding shall be effective against any
party if given by registered or certified mail (return receipt requested) or by
any other means which requires a signed receipt in accordance with, and at the
address listed in, Section 10.1. Nothing herein contained shall be deemed to
affect the right of any party to serve process in any manner permitted by law.

                                       48

<PAGE>

         11.7     FURTHER ASSURANCES. From time to time following the Closing,
at the request of any party and without further consideration, the other parties
shall execute and deliver to such requesting party such instruments and
documents and take such other action as such requesting party may reasonably
request or as may be otherwise necessary to (a) cause the Acquirer, the GP, U.S.
Propane, NewLP or the Venturers to fulfill their respective obligations under
this Agreement and the other Operative Documents and (b) otherwise consummate
more fully and effectively the transactions contemplated by this Agreement and
the Operative Documents.

         11.8     DESCRIPTIVE HEADINGS. The descriptive headings herein are
inserted for convenience of reference only, do not constitute a part of this
Agreement and shall not affect in any manner the meaning or interpretation of
this Agreement.

         11.9     COUNTERPARTS. This Agreement may be executed by the Parties in
any number of counterparts, each of which shall be deemed an original, but all
of which shall constitute one and the same agreement.

                           [SIGNATURE PAGES TO FOLLOW]

                                       49

<PAGE>

         IN WITNESS WHEREOF, this Acquisition Agreement has been duly executed
and delivered by the duly authorized representative of each party hereto as of
the date first above written.

GP:                                       U.S. PROPANE, L.L.C.

                                          By:___________________________________
                                             Name:
                                             Title:

U.S. PROPANE:                             U.S. PROPANE, L.P.

                                          By: U.S. Propane, L.L.C., its general
                                              partner

                                          By:___________________________________
                                             Name:
                                             Title:

                    [SIGNATURE PAGE TO ACQUISITION AGREEMENT]

                                       1

<PAGE>
                                          VENTURERS:

                                          AGL PROPANE SERVICES, INC.

                                          By:___________________________________
                                             Name:
                                             Title:

                                          AGL ENERGY CORPORATION

                                          By:___________________________________
                                             Name:
                                             Title:

                                          UNITED CITIES PROPANE GAS, INC.

                                          By:___________________________________
                                             Name:
                                             Title:

                                          TECO PROPANE VENTURES, LLC

                                          By:___________________________________
                                             Name:
                                             Title:

                                          PIEDMONT PROPANE COMPANY

                                          By:___________________________________
                                             Name:
                                             Title:

                    [SIGNATURE PAGE TO ACQUISITION AGREEMENT]

                                       2

<PAGE>

ACQUIRER:                                 LA GRANGE ENERGY, L.P.

                                          By: LE GP, LLC, its general partner

                                          By:___________________________________
                                             Name:
                                             Title:

                    [SIGNATURE PAGE TO ACQUISITION AGREEMENT]

                                       3<PAGE>

                                                                   EXHIBIT 10.31

================================================================================

                             CONTRIBUTION AGREEMENT

                                  BY AND AMONG

                             LA GRANGE ENERGY, L.P.,

                                       AND

                      HERITAGE PROPANE PARTNERS, L.P., AND
                               U.S. PROPANE, L.P.

                                NOVEMBER 6, 2003

================================================================================

                                                          CONTRIBUTION AGREEMENT
                                                 EXECUTION COPY NOVEMBER 6, 2003

<PAGE>

                             CONTRIBUTION AGREEMENT

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           PAGE
<S>                                                                                        <C>
ARTICLE 1 - DEFINITIONS.................................................................     1
       1.1 Definitions..................................................................     1
       1.2 Certain Additional Definitions...............................................     8
       1.3 Rules of Construction........................................................     9

ARTICLE 2 - CLOSING.....................................................................     9
       2.1 Closing......................................................................     9
       2.2 Pre-Closing Transactions.....................................................     9
       2.3 Contribution.................................................................    10
       2.4 Capital Expenditures Payment.................................................    11
       2.5 Bossier Pipeline Reimbursement Payment.......................................    11
       2.6 Accounts Payable True-Up.....................................................    12

ARTICLE 3 - REPRESENTATIONS AND WARRANTIES OF THE HERITAGE PARTIES......................    13
       3.1 Organization and Existence...................................................    13
       3.2 Capitalization of the Heritage Entities......................................    13
       3.3 Authority and Binding Agreement..............................................    15
       3.4 Agreements of Limited Partnership............................................    15
       3.5 Non-Contravention............................................................    16
       3.6 Governmental Approvals.......................................................    16
       3.7 Title to Heritage Assets.....................................................    16
       3.8 SEC Reports..................................................................    16
       3.9 Financial Statements.........................................................    17
       3.10 Absence of Certain Changes..................................................    18
       3.11 Tax Matters.................................................................    18
       3.12 Compliance with Laws........................................................    20
       3.13 Legal Proceedings...........................................................    20
       3.14 Sufficiency of Heritage Assets..............................................    20
       3.15 Real Property...............................................................    20
       3.16 Intellectual Property.......................................................    21
       3.17 Permits.....................................................................    21
       3.18 Agreements..................................................................    21
       3.19 Environmental Matters.......................................................    22
       3.20 Insurance...................................................................    23
       3.21 Absence of Liabilities......................................................    23
       3.22 Books and Records...........................................................    23
       3.23 Listing.....................................................................    24
       3.24 Employee Matters............................................................    24
       3.25 Consents....................................................................    24
       3.26 Conduct of the Heritage Business............................................    25
       3.27 Disclosure..................................................................    25
       3.28 Employee Benefit Plans......................................................    25
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                         <C>
       3.29 Finder's Fees...............................................................    26
       3.30 Regulation..................................................................    26
       3.31 No Violation................................................................    26
       3.32 Opinion of Financial Advisor................................................    27
       3.33 Approval of Special Committee...............................................    27

ARTICLE 4 - REPRESENTATIONS AND WARRANTIES OF LA GRANGE.................................    27
       4.1 Organization and Existence...................................................    27
       4.2 Capitalization of the La Grange Entities.....................................    27
       4.3 Authority and Binding Agreement..............................................    28
       4.4 Non-Contravention............................................................    28
       4.5 Governmental Approvals.......................................................    29
       4.6 Exclusive Operation of the Business..........................................    29
       4.7 Title to La Grange Assets....................................................    29
       4.8 Financial Statements.........................................................    29
       4.9 Absence of Certain Changes...................................................    30
       4.10 Tax Matters.................................................................    31
       4.11 Compliance with Laws........................................................    32
       4.12 Legal Proceedings...........................................................    32
       4.13 Sufficiency of La Grange Assets.............................................    32
       4.14 Real Property...............................................................    32
       4.15 Tangible Personal Property..................................................    33
       4.16 Intellectual Property.......................................................    33
       4.17 Permits.....................................................................    33
       4.18 Agreements..................................................................    33
       4.19 Environmental Matters.......................................................    35
       4.20 Insurance...................................................................    35
       4.21 Absence of Liabilities......................................................    36
       4.22 Books and Records...........................................................    36
       4.23 Investment Intent...........................................................    36
       4.24 Employee Matters............................................................    37
       4.25 Consents....................................................................    37
       4.26 Conduct of the La Grange Business...........................................    38
       4.27 Disclosure..................................................................    38
       4.28 Employee Benefit Plans......................................................    38
       4.29 Finder's Fees...............................................................    39
       4.30 Regulation..................................................................    39
       4.31 No Violation................................................................    39
       4.32 Agreements of La Grange and the La Grange Entities..........................    40

ARTICLE 5 - AGREEMENTS..................................................................    40
       5.1 Conduct and Preservation of the Business of the La Grange Entities...........    40
       5.2 Restrictions of Certain Actions of the La Grange Entities....................    40
       5.3 Services of La Grange Employees..............................................    42
       5.4 Conduct and Preservation of the Heritage Business............................    42
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                         <C>
       5.5 Restrictions on Certain Actions of the Heritage Parties and Heritage GP......    42
       5.6 Consent to Section 754 Elections.............................................    44
       5.7 Tax Reporting................................................................    44

ARTICLE 6 - ADDITIONAL AGREEMENTS.......................................................    45
       6.1 Access to Information, Confidentiality.......................................    45
       6.2 Authorizations and Consents..................................................    45
       6.3 Public Announcements.........................................................    46
       6.4 Access to Records After Closing..............................................    46
       6.5 Fees and Expenses............................................................    46
       6.6 Taxes; Other Charges.........................................................    46
       6.7 Employment Matters...........................................................    47
       6.8 Amendment of Schedules.......................................................    47
       6.9 Actions by Parties...........................................................    48
       6.10 Vote of Common Units........................................................    48
       6.11 Listing.....................................................................    48
       6.12 Financial Statements........................................................    48
       6.13 Additional Cooperation......................................................    48
       6.14 Confidentiality and Tax Shelter Regulations.................................    48
       6.15 Permitted Actions...........................................................    48

ARTICLE 7 - CONDITIONS TO OBLIGATIONS OF THE PARTIES....................................    49
       7.1 Conditions to Closing of La Grange...........................................    49
       7.2 Conditions to Closing of the Heritage Parties................................    51

ARTICLE 8 - TERMINATION, AMENDMENT AND WAIVER...........................................    53
       8.1 Termination..................................................................    53
       8.2 Effect of Termination........................................................    54
       8.3 Amendment....................................................................    54
       8.4 Waiver.......................................................................    54
       8.5 Payment Upon Certain Termination.............................................    54

ARTICLE 9 - SURVIVAL OF REPRESENTATIONS.................................................    55
       9.1 Indemnification Obligations of La Grange.....................................    55
       9.2 Indemnification Obligations of the Heritage Parties..........................    55
       9.3 Indemnification Procedures...................................................    56
       9.4 Survival.....................................................................    58
       9.5 No Special or Consequential Damages..........................................    59

ARTICLE 10 - MISCELLANEOUS..............................................................    59
       10.1 Notices.....................................................................    59
       10.2 Entire Agreement............................................................    60
       10.3 Binding Effect; Assignment; No Third Party Benefit..........................    60
       10.4 Severability................................................................    60
       10.5 Governing Law...............................................................    60
       10.6 Jurisdiction................................................................    60
</TABLE>

                                       iii
<PAGE>

<TABLE>
<S>                                                                                         <C>
       10.7 Further Assurances..........................................................    61
       10.8 Descriptive Headings........................................................    61
       10.9 Counterparts................................................................    61

SIGNATURE PAGE..........................................................................    62
</TABLE>

                                       iv
<PAGE>

                             CONTRIBUTION AGREEMENT

                        SUMMARY of SCHEDULES AND EXHIBITS

SCHEDULES

Schedule 3.1            Organization and Existence
Schedule 3.2(c)         Capitalization Of The Heritage Entities
Schedule 3.6            Governmental Approvals
Schedule 3.7            Encumbrances On Heritage Assets
Schedule 3.9(a)         Heritage Financial Statements
Schedule 3.9(e)         Outstanding Restricted Units Awarded Under the Heritage
                          Plans
Schedule 3.11(a)        Tax Matters
Schedule 3.11(b)        Tax Matters
Schedule 3.11(c)        Tax Matters
Schedule 3.11(d)        Tax Matters
Schedule 3.15(a)        Owned Property
Schedule 3.15(b)        Leased Property
Schedule 3.16           Non-Owned Heritage Intellectual Property
Schedule 3.18(a)        Heritage Contracts
Schedule 3.18(b)        Default Or Violation
Schedule 3.19(a)        Environmental Matters
Schedule 3.19(b)        Environmental Matters
Schedule 3.19(d)        Environmental Matters
Schedule 3.21           Liabilities
Schedule 3.24(a)        Employee Matters
Schedule 3.24(b)        Employee Matters
Schedule 3.25           The Consents, Approvals, Orders, Authorizations and
                          Waivers Of Third Parties
Schedule 3.26           Certain Actions Since the Effective Time
Schedule 3.28(a)        Employee Benefit Plans
Schedule 3.28(b)        Employee Benefit Plans
Schedule 3.28(d)        Employee Benefit Plans
Schedule 3.28(f)        Employee Benefit Plans
Schedule 3.28(g)        Employee Benefit Plans
Schedule 3.29           Finder's Fees
Schedule 3.30           Investment Or Holding Company
Schedule 4.1            Organization and Existence
Schedule 4.2(a)         Capitalization
Schedule 4.2(b)         Capitalization
Schedule 4.2(c)         Subscriptions, Options, Convertible Securities,
                          Warrants, Calls, Preemptive Rights or Other Rights
Schedule 4.5            Governmental Approvals
Schedule 4.6            Exclusive Operation of Business
Schedule 4.7            Encumbrances
Schedule 4.8(a)         La Grange Financial Statements

                                        v
<PAGE>

Schedule 4.8(b)         Aquila Financial Statements
Schedule 4.8(c)         Oasis Financial Statements
Schedule 4.10(a)        Tax Matters
Schedule 4.10(b)        Tax Matters
Schedule 4.10(d)        Tax Matters
Schedule 4.12           Legal Proceedings
Schedule 4.14(a)        Owned Property
Schedule 4.14(b)        Leased Property
Schedule 4.15           Tangible Personal Property
Schedule 4.16           Software License Agreements
Schedule 4.17(a)        Permits
Schedule 4.17(b)        Burdensome Permit Conditions
Schedule 4.18(a):
         4.18(a)(i)     Collective Bargaining Agreements
         4.18(a)(ii)    Employee Benefit Arrangements
         4.18(a)(iii)   Agreements with Officers, Directors and Employees
         4.18(a)(iv)    Capital Stock Agreements
         4.18(a)(v)     Affiliate Agreements
         4.18(a)(vi)    Mortgages, Security Agreements
         4.18(a)(vii)   Acquisition or Disposition of Assets
         4.18(a)(viii)  Leases
         4.18(a)(ix)    Management or Operation Agreements
         4.18(a)(x)     Supplier, Marketing and Consulting Agreements
         4.18(a)(xi)    Software License Agreements
         4.18(a)(xii)   Partnership and Joint Venture Agreements
         4.18(a)(xiii)  Governmental Agreements
         4.18(a)(xiv)   Settlement Agreements
         4.18(a)(xv)    Non-Competition Agreements
         4.18(a)(xvi)   Agreements Not Made in the Ordinary Course of Business
         4.18(a)(xvii)  Other Material Agreements
         4.18(a)(xviii) Agreements or Commitments
         4.18(b)        Defaults
Schedule 4.19(a)        Remedial Obligations
Schedule 4.19(b)        Environmental Conditions
Schedule 4.19(c)(i)     Underground Storage Tanks
Schedule 4.19(c)(ii)    Pending Governmental Actions
Schedule 4.19(c)(iii)   Permit Violations
Schedule 4.19(c)(iv)    Manufactured Gas Sites
Schedule 4.21           Liabilities that Result in Encumbrances
Schedule 4.24(a)        Employee Matters
Schedule 4.24(b)        Employee Matters
Schedule 4.24(c)        Employee Matters
Schedule 4.25           Consents and Approvals
Schedule 4.26           Prohibited Actions
Schedule 4.28(a)(i)     Employee Benefit Plans
Schedule 4.28(a)(ii)    Employee Benefit Plans

                                       vi
<PAGE>

Schedule 4.28(b)        Employee Benefit Plans
Schedule 4.28(d)        Employee Benefit Plans
Schedule 4.28(f)        Employee Benefit Plans
Schedule 4.28(g)        Employee Benefit Plans
Schedule 4.29           Finder's Fees
Schedule 4.30           Entities with Investment Company or Holding Company
                          Status
Schedule 5.1            Conduct and Preservation of Business
Schedule 5.2            Restricted Actions
Schedule 5.4            Conduct And Preservation Of Business
Schedule 5.5            Restricted Actions
Schedule 7.1(e)         Material Consents
Schedule 7.2(e)         Material Consents

                                       vii
<PAGE>

EXHIBITS

Exhibit 1.1             Noncompete Agreement
Exhibit 2.2(a)(iii)     Distribution of La Grange Partnerships and New ETC Texas
                        Working Capital Assets to La Grange
Exhibit 2.2(a)(iv)      Form of Warranty Deed
Exhibit 3.2(e)(i)       Amendment No. 5 to Heritage MLP Partnership Agreement
Exhibit 7.1(c)          Certificate of the Heritage Parties
Exhibit 7.2(j)          Application for Issuance of Common Units

                                      viii
<PAGE>

                             CONTRIBUTION AGREEMENT

         This Contribution Agreement (this "Agreement"), dated as of November 6,
2003, is entered into by and among the following:

         1.       La Grange Energy, L.P., a Texas limited partnership ("La
                  Grange"); and

         2.       Heritage Propane Partners, L.P., a Delaware limited
                  partnership ("Heritage MLP") and U.S. Propane, L.P., a
                  Delaware limited partnership ("Heritage GP").

                                    RECITALS:

         A.       La Grange is engaged in the business of purchasing, gathering,
treating, processing, marketing, sales, storage, transportation, fractionation
and distribution of natural gas and natural gas liquids through La Grange and
its subsidiaries.

         B.       La Grange desires to contribute to Heritage MLP, and Heritage
MLP desires to accept from La Grange all of the interests of certain
subsidiaries of La Grange.

         C.       In consideration of the mutual covenants and agreements set
forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

         1.1      DEFINITIONS. As used in this Agreement, the following defined
terms shall have the meanings indicated below:

         "Accounts Payable" means all liabilities, excluding Long-Term Debt,
amounts to be paid pursuant to the Capital Expenditures Payment, amounts to be
paid pursuant to the Bossier Pipeline Reimbursement Payment, and deferred income
taxes.

         "Acquisition Agreement" means the Acquisition Agreement by and among
Heritage GP, U.S. Propane, L.L.C., AGL Propane Services, Inc., AGL Energy
Corporation, United Cities Propane Gas, Inc., TECO Propane Ventures, LLC,
Piedmont Propane Company, and La Grange, dated November 6, 2003.

         "Affiliate" means, with respect to a Person, (a) any other Person more
than 50 percent of whose outstanding voting securities are directly or
indirectly owned, controlled or held with the power to vote by such Person and
(b) any other Person directly or indirectly controlling, controlled by, or under
common control with such Person. The term "controls" (and the variants thereof)
as used in this definition means the possession of the power, acting alone, to
direct or cause the direction of the management and policies of a Person by
virtue of ownership of voting securities or otherwise.

                                        1
<PAGE>

         "Applicable Law" means any law to which a specified Person or property
is subject.

         "Average Market Value" of the Units means an amount equal to the
average of the closing sales prices of the Common Units as reported in the Wall
Street Journal - Corporate Transactions for the 45 consecutive trading days
ending on the third business day before the Closing Date.

         "Bossier Pipeline Project" means the approximately 55 mile natural gas
pipeline extension from Limestone County, Texas to Katy, Texas, with XTO Energy,
Inc. as its initial customer, and for which the Bossier Pipeline Reimbursement
Payment shall be made pursuant to Section 2.5.

         "Business Day" means a day other than Saturday, Sunday or any day on
which banks located in the State of Texas are authorized or obligated to close.

         "Capital Stock" means, with respect to: (i) any corporation, any share,
or any depositary receipt or other certificate representing any share, of an
equity ownership interest in that corporation; and (ii) any other entity, any
share, membership or other percentage interest, unit of participation or other
equivalent (however designated) of an equity interest in that entity.

         "Class C Unit" means a Class C Unit, as defined in the Heritage MLP
Partnership Agreement.

         "Class D Unit" means a Class D Unit, as defined in the Heritage MLP
Partnership Agreement (after giving effect to Amendment No. 5).

         "Code" means the Internal Revenue Code of 1986, as amended and in
effect from time to time. Any reference herein to a specific section or sections
of the Code shall be deemed to include a reference to a corresponding provision
of any successor law.

         "Commercially Reasonable Best Efforts" or any phrase of similar tenor
as used in this Agreement shall mean such good faith efforts as are commercially
reasonable, comparing the cost and expense of the efforts to the benefit to be
gained (without regard to the identity of the beneficiary).

         "Common Unit" means a Common Unit, as defined in the Heritage MLP
Partnership Agreement.

         "Contract" means any agreement, contract, obligation, promise, or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

         "Contribution Agreement" means this Agreement.

         "Delaware LP Act" means the Delaware Revised Uniform Limited
Partnership Act, as amended.

         "Encumbrance" means any security interest, lien, pledge, claim, charge,
escrow, encumbrance, option, right of first offer, right of first refusal,
preemptive right, mortgage,

                                       2
<PAGE>

indenture, security agreement or other similar agreement, arrangement, contract,
commitment, understanding or obligation, whether written or oral and whether or
not relating in any way to credit or the borrowing of money.

         "ERISA" means the Employee Retirement Income Security Act of 1974 (or
any successor legislation thereto), as amended from time to time and any
regulations promulgated thereunder.

         "ET Company, Ltd." means ET Company Ltd., a Texas limited partnership.

         "ETC Oasis GP, LLC" means ETC Oasis GP, LLC, a Texas limited liability
company.

         "ETC OLP" means La Grange Acquisition, L.P., a Texas limited
partnership.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the SEC thereunder.

         "Five Dawaco, LLC" means the Texas limited liability company formed in
connection with the conversion of Five Dawaco, Inc., a Texas corporation.

         "GAAP" means generally accepted accounting principles as in effect in
the United States of America on the applicable date.

         "Governmental Authority" or "Governmental" means a federal, state,
local or foreign governmental authority; a state, province, commonwealth,
territory or district thereof; a county or parish; a city, town, township,
village or other municipality; a district, ward or other subdivision of any of
the foregoing; any executive, legislative or other governing body of any of the
foregoing; any agency, authority, board, department, system, service, office,
commission, committee, council or other administrative body of any of the
foregoing; any court or other judicial body; and any officer, official or other
representative of any of the foregoing.

         "Heritage Assets" means all assets and properties of every kind,
character and description, whether tangible, intangible, real, personal or
mixed, which are owned, used or held for use by the Heritage Entities as of the
date hereof.

         "Heritage Business" means all business activities of the Heritage
Entities as conducted on the date hereof.

         "Heritage Employee" means an employee of Heritage GP, any of the
Heritage Entities, or their respective Affiliates, who is employed in the
Heritage Business.

         "Heritage Entities" means the Heritage Parties and the following
entities: M-P Oils, Ltd., an Alberta, Canada corporation; Heritage Bi-State
L.L.C., a Delaware limited liability company; Heritage Energy Resources, L.L.C.,
an Oklahoma limited liability company; Heritage Service Corp., a Delaware
corporation; 902 Gilbert Street, LLC, a North Carolina limited liability
company; EarthAmerica, L.L.C., a Delaware limited liability company;
EarthAmerica GP, L.L.C., a Delaware limited liability company; and EarthAmerica
of Texas, L.P., a Texas limited partnership.

                                       3
<PAGE>

         "Heritage OLP" means Heritage Operating, L.P., a Delaware limited
partnership.

         "Heritage Parties" means Heritage MLP and Heritage OLP.

         "Heritage Permitted Acquisition" means the acquisition by any of the
Heritage Entities of (i) one or more companies, businesses or assets that are
similar in nature, or complementary to, the Heritage Business for an aggregate
purchase price of not more than $10 million, or (ii) the acquisition of the
assets or ownership interests of any Heritage Entity that will become a Heritage
Wholly Owned Subsidiary upon such acquisition.

         "Heritage Wholly Owned Subsidiary" means any corporation or other
entity all of whose outstanding Capital Stock on a fully diluted basis either of
the Heritage Parties owns and controls, directly or indirectly through another
Heritage Wholly Owned Subsidiary.

         "HHI" means Heritage Holdings, Inc., a Delaware corporation.

         "HHI Purchase Agreement" means that certain Stock Purchase Agreement,
dated as of November 6, 2003, among Heritage MLP and the Sellers named therein.

         "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended.

         "Incentive Distribution Right" means an Incentive Distribution Right as
defined in the Heritage MLP Partnership Agreement.

         "Intellectual Property" means patents, trademarks, service marks, trade
names, service names, logos, marks, designs, copyrights, licenses, inventions,
trade secrets and similar rights, and all registrations, applications, licenses
and rights with respect to any of the foregoing.

         "IRS" means the Internal Revenue Service.

         "La Grange Assets" means all assets and properties of every kind,
character and description, whether tangible, intangible, real, personal or
mixed, which are owned, used or held for use by the La Grange Entities as of the
date hereof.

         "La Grange Business" means all business activities of La Grange Energy,
L.P. and the La Grange Entities as conducted on the date hereof.

         "La Grange Contracts" means all of the Contracts identified in Schedule
4.18(a) and each Contract relating to or used in connection with the La Grange
Business that is not required to be identified in Schedule 4.18(a).

         "La Grange Credit Agreement" means the Amended and Restated Credit
Agreement, dated as of December 27, 2002, between La Grange Acquisition, L.P.,
as borrower, Fleet National Bank, as administrative agent, Fleet Securities,
Inc. as arranger and book manager, Fortis Capital Corp. and U.S. Bank National
Association, as documentation agents and the other lenders named therein (as
amended and supplemented as of the date hereof).

                                       4
<PAGE>

         "La Grange Employee" means an employee of La Grange, any of the La
Grange Entities, or their respective Affiliates, who is employed in the La
Grange Business.

         "La Grange Entity" and "La Grange Entities" means each entity and all
of the entities, respectively, required to be identified on Schedule 4.1.,
including the La Grange GP Entities and the La Grange Partnerships.

         "La Grange GP Entities" means (i) LA GP, LLC, (ii) LG PL, LLC, (iii)
LGM, LLC, (iv) ETC Oasis GP, LLC and (v) Five Dawaco, LLC.

         "LA GP, LLC" means LAGP, LLC, a Texas limited liability company.

         "La Grange Interests" means all of the ownership interests in the La
Grange GP Entities, ETC OLP, and the Dallas Office Building.

         "La Grange Partnerships" means Texas Energy Transfer Company, Ltd.;
Chalkley Transmission Company, Ltd.; Whiskey Bay Gathering Company, Ltd.;
Whiskey Bay Gas Company, Ltd.; ETC Gas Company, Ltd.; ETC Oklahoma Pipeline,
Ltd.; ETC Oasis, LP; ETC Texas Processing, Ltd.; ETC Marketing, Ltd.; ET Company
I, Ltd.; ETC Texas Pipeline, Ltd.; La Grange Acquisition Sub; and ETC OLP.

         "La Grange Permitted Acquisition" means the acquisition by any of the
La Grange Entities of one or more companies, businesses or assets that are
similar in nature, or complementary to, the La Grange Business or the La Grange
Assets for an aggregate purchase price of not more than $10 million.

         "La Grange Wholly Owned Subsidiary" means any corporation or other
entity all of whose outstanding Capital Stock on a fully diluted basis La Grange
owns and controls, directly or indirectly through another La Grange Wholly Owned
Subsidiary.

         "Law" means any applicable constitutional provision, statute, act, code
(including the Code), law, regulation, rule, ordinance, order, decree, ruling,
proclamation, resolution, judgment, decision, declaration, or interpretative or
advisory opinion or letter of a Governmental Authority having valid
jurisdiction.

         "LG PL, LLC" means LG PL, LLC, a Texas limited liability company.

         "LGM, LLC" means LGM, LLC, a Texas limited liability company.

         "LP, Inc." means a newly formed corporation to be formed by Heritage
MLP, and which will own a .001% limited partner interest in Heritage OLP.

         "Long-Term Debt" means long-term debt, the current portion of long-term
debt, and all interest, fees and expenses due on the repayment of long-term
debt, with such amount being equal to the amount of the payment made by Heritage
MLP to pay off the La Grange Credit Agreement pursuant to Section 2.3(c).

                                       5
<PAGE>

         "Losses" means losses, damages, liabilities, claims, costs and expenses
(including, without limitation, related Legal Expenses), but excluding losses,
damages, liabilities, claims, costs and expenses incurred in connection with or
relating to lost profits or special, consequential, exemplary or punitive
damages.

         "New OLP" means a newly formed Delaware limited partnership to be
formed by Heritage MLP and which will be wholly owned, directly or indirectly,
by Heritage MLP.

         "Noncompete Agreement" means that Noncompete Agreement by and among ETC
Holdings, LP, ET GP, LLC, La Grange, LE GP, LLC, Ray Davis, Kelcy Warren and
Heritage MLP, in substantially the form attached as Exhibit 1.1.

         "Organization State" means, as applied to (i) any corporation, its
state or other jurisdiction of incorporation, (ii) any limited liability company
or limited partnership, the state or other jurisdiction under whose laws it is
formed, organized and existing in that legal form, and (iii) any other entity,
the state or other jurisdiction whose laws govern that entity's internal
affairs.

         "Other Parties" means, with respect to a Party, each Party other than
such Party and its Affiliates.

         "Other Transaction Documents" means the Acquisition Agreement and the
HHI Purchase Agreement.

         "Parties" means, collectively, each of the parties named in the
Preamble.

         "Permits" means licenses, permits, franchises, consents, approvals,
variances, exemptions and other authorizations of or from Governmental
Authorities.

         "Permitted Encumbrances" with respect to a Party, means (a) the
Encumbrances set forth in the Schedules to this Agreement, and specifically
identified as such, (b) liens for Taxes not yet due and payable or, if due and
payable, the validity of which is being contested in good faith by appropriate
legal proceedings and for which adequate reserves have been set aside, (c)
statutory liens (including materialmen's, mechanic's, repairmen's, landlord's
and other similar liens) arising in connection with the ordinary course of
business securing payments not yet due and payable or, if due and payable, the
validity of which is being contested in good faith by appropriate legal
proceedings and for which adequate reserves have been set aside, (d) liens of
landlords under lease agreements with respect to property located on the leased
premises, and (e) such imperfections or irregularities of title, if any, as (i)
are not substantial in character, amount or extent and do not materially detract
from the value of the property subject thereto, (ii) do not materially interfere
with either the present or intended use of such property and (iii) do not,
individually or in the aggregate, materially interfere with the conduct of the
business of such Party.

         "Person" means any individual, corporation, firm, partnership, limited
partnership, limited liability company, joint venture, association, joint-stock
company, trust, enterprise, other entity, unincorporated association or
Governmental Authority.

                                       6
<PAGE>

         "Proceedings" means all proceedings, actions, claims, suits,
investigations and inquiries by or before any arbitrator or Governmental
Authority.

         "Restricted Unit Plan" means the Restricted Unit Plan of Heritage GP
dated as of June 28, 1996, as amended and restated as the Amended and Restated
Restricted Unit Plan dated August 10, 2000, as amended and restated as the
Second Amended and Restated Restricted Unit Plan dated February 4, 2002.

         "Software" means computer software, including systems software,
documentation and object and source codes.

         "Special Committee" means the Special Committee of the Board of
Directors of Heritage GP consisting of Stephen L. Cropper, J. Charles Sawyer and
Bill W. Byrne.

         "Special Units" means a Special Unit as defined in the Heritage MLP
Partnership Agreement (after giving effect to Amendment No. 5).

         "Subsidiary" means as to any Person, (a) any corporation more than 50
percent of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(excluding stock of any class or classes of such corporation that might have
voting power by reason of the happening of any contingency) is at the time owned
by such Person and/or one or more Subsidiaries of such Person and (b) any
partnership, limited partnership, limited liability company, joint venture,
association, joint-stock company, trust, enterprise, other entity or
unincorporated association in which such Person and/or one or more Subsidiaries
of such Person has more than a 50 percent equity interest at the time.

         "Tax Return" means any return (including an information return) or
report, including any related or supporting information, with respect to Taxes.

         "Taxes" means any income taxes or similar assessments or any sales,
gross receipts, excise, occupation, use, ad valorem, property, production,
severance, transportation, employment, payroll, franchise or other tax imposed
by any United States federal, state or local (or any foreign or provincial)
taxing authority, including any interest, penalties or additions attributable
thereto.

         "Technology" means trade secrets, confidential information (whether or
not of a technological or commercial nature), proprietary information,
inventions, technical data, spreadsheets, technical plans and drawings,
blueprints, general specifications, tooling specifications, purchase
specifications, know-how, formulae, processes, procedures, research records,
records of inventions, test information, market surveys and marketing know-how.

         "TETC, LLC" means the Texas limited liability company formed in
connection with the conversion of TETC, Inc., a Texas corporation.

          "Units" means the Common Units, Class D Units and Special Units
issuable as the Equity Consideration.

                                       7
<PAGE>

         1.2      CERTAIN ADDITIONAL DEFINITIONS. In addition to such terms as
are defined in Section 1.1, the following terms are used in this Agreement as
defined in the Sections set forth opposite such terms:

<TABLE>
<CAPTION>
            DEFINED TERM                                  SECTION REFERENCE
            ------------                                  -----------------
<S>                                                       <C>
Agreement                                                     Preamble
Amendment No. 5                                               3.2(e)
Applicable Environmental Laws                                 3.17(a)
Aquila Financial Statements                                   4.8(b)
Bossier Pipeline Reimbursement Payment                        2.5
Cash Consideration                                            2.3(a)(i)
Capital Expenditures Payment                                  2.4
CERCLA                                                        3.17(a)
Closing                                                       2.1
Closing Date                                                  2.1
Consents                                                      4.25
Dallas Office Building                                        2.2(a)(v)
Debt Financing                                                7.1(n)
Equity Consideration                                          2.3(a)(ii)
Equity Financing                                              7.1(m)
Estimated ETC OLP Accounts Payable                            2.6(a)
Estimated Long-Term Debt                                      2.3(a)(i)
ETC OLP Accounts Payable                                      2.3(a)(i)
ETC OLP Interest                                              2.2(c)(i)
Final Statement                                               2.6(b)
Financial Statement Date                                      4.8(a)
Hazardous Substance                                           3.17(c)
Heritage Consents                                             3.21
Heritage Documents                                            3.3
Heritage Financial Statements                                 3.9(a)
Heritage GP                                                   Preamble
Heritage Indemnified Parties                                  9.1(a)
Heritage MLP                                                  Preamble
Heritage MLP Partnership Agreement                            3.2(a)
Heritage Material Adverse Effect                              3.10
Heritage OLP Partnership Agreement                            3.2(d)
Heritage Plans                                                3.23(a)
Indemnified Party                                             9.3(a)
Indemnifying Party                                            9.3(a)
Independent Accounting Firm                                   2.6(b)(iii)
La Grange                                                     Preamble
La Grange Acquisition Sub                                     2.7
La Grange Documents                                           4.3
La Grange Financial Statements                                4.8(a)
La Grange Indemnified Parties                                 9.2(a)
La Grange Material Adverse Effect                             4.9
</TABLE>

                                       8
<PAGE>

<TABLE>
<S>                                                           <C>
La Grange Plans                                               4.28(a)
Oasis Financial Statements                                    4.8(c)
Post-Signing Event                                            6.8
Prepayment Waivers                                            7.1(o)
Pre-Signing Event                                             6.8
RCRA                                                          3.17(a)
Resolution Period                                             2.6(b)(iii)
SEC                                                           3.8(a)
SEC Reports                                                   3.8(a)
Securities Act                                                3.8(a)
Solid Waste                                                   3.17(c)
Stub Period Financial Statements                              6.12
Third Party Action                                            9.3(a)
</TABLE>

         1.3      RULES OF CONSTRUCTION. Unless the context requires otherwise:
(a) the gender (or lack of gender) of all words used in this Agreement includes
the masculine, feminine, and neuter; (b) the term "include" or "includes" means
"includes, without limitation," and "including" means "including, without
limitation"; (c) references to Articles and Sections refer to Articles and
Sections of this Agreement; (d) references to Exhibits and Schedules refer to
the Exhibits and Schedules attached to this Agreement, which are made a part
hereof for all purposes; (e) references to Laws refer to such Laws as they may
be amended from time to time, and references to particular provisions of a Law
include any corresponding provisions of any succeeding Law; and (f) references
to money refer to legal currency of the United States of America.

                                    ARTICLE 2
                                     CLOSING

         2.1      CLOSING. Subject to the terms and conditions hereof, the
closing (the "Closing") of the transactions described in Article 2 will take
place at such time and place as La Grange and the Heritage Parties shall
mutually agree, at 9:00 A.M., central daylight time, on the third Business Day
following the date on which the last of the conditions to Closing set forth in
Article 7 have been satisfied or waived by the Party or Parties entitled to
waive the same or such other date as to which La Grange and the Heritage Parties
shall mutually agree (the date and time of the Closing are herein referred to as
the "Closing Date"). At the Closing, there shall be delivered the opinions,
certificates and other agreements, documents and instruments to be delivered
under Article 7.

         2.2      PRE-CLOSING TRANSACTIONS.(a)    Prior to or at the Closing, La
Grange agrees to effect the actions required to be taken so that,

                  (i)      TETC, Inc. and Five Dawaco, Inc. shall have taken
         such action as is required to convert in each case to a limited
         liability company under the laws of their respective Organization State
         and shall have taken such action as may be required to be taxed as a
         partnership for income tax purposes;

                                       9
<PAGE>

                  (ii)     ETC Holdings, LP shall have taken such action as is
         required to convey its interest in each of the La Grange GP Entities to
         La Grange;

                  (iii)    Each of the La Grange Partnerships shall have
         distributed its respective cash, cash equivalents and receivables as of
         the Closing Date as specified in Exhibit 2.2(a)(iii) to La Grange; and

                  (iv)     ET Company, Ltd. shall have contributed the Dallas,
         Texas office building owned by ET Company, Ltd. (the "Dallas Office
         Building") to ETC OLP, free and clear of all Encumbrances other than
         Permitted Encumbrances, pursuant to a Warranty Deed substantially in
         the form attached hereto as Exhibit 2.2(a)(iv), and shall have
         terminated any prior leases relating to the Dallas Office Building.

         (b)      Prior to the Closing, Heritage MLP and its subsidiaries shall
have taken the action necessary to,

                  (i)      restructure its ownership of Heritage Operating,
         L.P., including the formation of LP, Inc., a Delaware corporation; and

                  (ii)     accommodate its ownership of La Grange.

         (c)      Prior to or at the Closing,

                  (i)      La Grange will convey to Heritage GP a limited
         partner interest in ETC OLP in an amount that has a value equivalent to
         2% of the total equity to be contributed to Heritage MLP at Closing
         (the "ETC OLP Interest"); and

                  (ii)     Heritage GP will convey the ETC OLP Interest to
         Heritage MLP in exchange for the continuation of its 2% general partner
         interest in Heritage MLP.

         2.3      CONTRIBUTION.

         (a)      On the terms and subject to the conditions of this Agreement,
at the Closing, La Grange shall contribute, transfer and deliver or cause to be
contributed, transferred and delivered to Heritage MLP all of the La Grange
Interests and Heritage MLP shall acquire from La Grange all of the La Grange
Interests, free and clear of all Encumbrances other than Permitted Encumbrances,
in exchange for the following:

                  (i)      An amount in cash equal to $300 million, less (A) the
         amount of Accounts Payable of ETC OLP and its consolidated subsidiaries
         (the "ETC OLP Accounts Payable") as of the Closing Date which shall
         continue to be obligations of ETC OLP immediately following the
         Closing, less (B) if, at Closing, the amount by which the Long-Term
         Debt is more than $151.5 million (the "Estimated Long-Term Debt"), plus
         (C) if, at Closing, the amount by which the Long-Term Debt is less than
         $151.5 million, less (D) the amount, if any, by which $2,000,000
         exceeds the appraised value of the Dallas Office Building, by wire
         transfer of immediately available funds to an account designated by La
         Grange at least three (3) days prior to the Closing Date (the "Cash
         Consideration");

                                       10
<PAGE>

                  (ii)     The number of Common Units, Class D Units and Special
         Units as set forth in Section 2.3(b), having a total value of $680
         million, plus an amount equal to the lesser of (x) $2,000,000 and (y)
         the appraised value of the Dallas Office Building, less the amount of
         the Estimated Long-Term Debt (the "Equity Consideration");

                  (iii)    the Capital Expenditures Payment set forth in Section
         2.4.; and

                  (iv)     the Bossier Pipeline Reimbursement Payment set forth
         in Section 2.5.

         (b)      The number of Common Units, Class D Units and Special Units
which comprise the Equity Consideration, shall be an aggregate of 15,883,234
Units, divided as follows: (i) a number of Common Units equal to the number of
Common Units outstanding immediately prior to Closing (not including any Common
Units to be issued hereunder) multiplied by 19.99%, (ii) a number of Class D
Units equal to the aggregate number of Units minus the number of Common Units
determined in (i) hereof and the number of Special Units set forth in (iii)
hereof, and (iii) 3,742,515 Special Units.

         (c)      Immediately following the transactions described above, (i)
Heritage MLP will contribute (A) its interest in the GP Entities (other than LA
GP, LLC) and cash in an amount sufficient to replenish the working capital of
the LaGrange Partnerships to ETC OLP as a capital contribution and (B) all of
the capital stock of LP, Inc. and its interest in each of Heritage OLP, LA GP,
LLC and ETC OLP to New OLP and (ii) the Heritage Parties shall pay in full the
Long-Term Debt and shall obtain (x) the release of all collateral held by the
lenders to secure such obligations and (y) authorization of such lenders to file
any lien release or termination documents as may be necessary to effectively
terminate any and all liens and security interests held by such lenders in the
collateral, including, but not limited to UCC-3 financing statement amendments.

         2.4      CAPITAL EXPENDITURES PAYMENT. Additional cash shall be paid to
La Grange at Closing as reimbursement for capital expenditures paid to third
parties through the Closing Date with respect to the following growth projects,
in an amount as mutually agreed to by the Parties, and not to exceed five
million ($5,000,000) dollars (the "Capital Expenditures Payment"):

         (a)      Prentis Treater located in Elk City, Oklahoma;

         (b)      Katy 30" Interconnect;

         (c)      La Grange Inlet Compression Project; and

         (d)      Navasota Treater Shutdown.

         2.5      BOSSIER PIPELINE REIMBURSEMENT PAYMENT.

         Additional cash shall be paid to La Grange at Closing as reimbursement
for capital expenditures paid to third parties through the Closing Date with
respect to the Bossier Pipeline Project, in an amount as mutually agreed to by
Parties, and not to exceed seventy-five million ($75,000,000) dollars (the
"Bossier Pipeline Reimbursement Payment").

         2.6      ACCOUNTS PAYABLE TRUE-UP.

                                       11
<PAGE>

         (a)      Within five (5) days of the Closing Date, La Grange shall
estimate the amount of the Accounts Payable of ETC OLP as of the Closing Date
(the "the Estimated ETC OLP Accounts Payable"), which shall continue to be the
obligations of ETC OLP following the Closing.

         (b)      Within 60 days after the Closing Date, Heritage MLP shall
prepare an unaudited statement (the "Final Statement") of the ETC OLP Accounts
Payable as of the close of business on the Closing Date, such Final Statement to
be prepared in the following manner:

                  (i)      Heritage MLP shall deliver to La Grange the Final
         Statement, fairly presenting the ETC OLP Accounts Payable as of the
         close of business on the Closing Date. The Final Statement shall be
         accompanied by a report setting forth (A) the ETC OLP Accounts Payable,
         in reasonable detail, as reflected in the Final Statement, and (B) the
         amount of any difference between the ETC OLP Accounts Payable as
         reflected on the Final Statement and the Estimated ETC OLP Accounts
         Payable, to whom such difference is to be paid and the basis therefore.
         The principles of presentation in the Final Statement shall be the same
         as those presented in determining the Estimated ETC OLP Accounts
         Payable at Closing.

                  (ii)     Following the Closing, Heritage MLP, on the one hand,
         and La Grange, on the other hand, shall deliver to each other and each
         other's authorized representatives, if any, full access at all
         reasonable times to the properties, books, records and personnel of the
         La Grange Entities relating to periods prior to the Closing Date for
         purposes of preparing, reviewing and resolving any disputes concerning
         the Final Statement. La Grange shall have 30 days following delivery of
         the Final Statement during which to notify Heritage MLP of any dispute
         of any item contained in the Final Statement, which notice shall set
         forth in reasonable detail the basis for such dispute. If La Grange
         fails to notify Heritage MLP of any such dispute within such 30-day
         period, the Final Statement shall be deemed to be accepted. If La
         Grange shall so notify Heritage MLP of any dispute, La Grange and
         Heritage MLP shall cooperate in good faith to resolve such dispute as
         promptly as possible.

                  (iii)    If Heritage MLP and La Grange are unable to resolve
         any such dispute within 30 days of La Grange's delivery of such notice
         (the "Resolution Period"), then all amounts remaining in dispute shall
         be submitted to such nationally recognized accounting firm as shall be
         reasonably acceptable to Heritage MLP and La Grange (the "Independent
         Accounting Firm") within 10 days after the expiration of the Resolution
         Period. Each party agrees to execute, if requested by the Independent
         Accounting Firm, a reasonable engagement letter. All fees and expenses
         relating to the work, if any, to be performed by the Independent
         Accounting Firm shall be borne equally by Heritage MLP and La Grange.
         The Independent Accounting Firm shall act as an arbitrator to
         determine, based solely on presentations by Heritage MLP and La Grange,
         and not by independent review, only those issues still in dispute and
         shall be limited to those adjustments, if any, that need be made for
         the Final Statement to comply with the standards set forth in this
         Section 2.6(b)(iii). The Independent Accounting Firm's determination
         shall be requested to be made within 30 days of their selection, shall
         be set forth in a written statement delivered to Heritage MLP and La
         Grange and shall be final, binding and conclusive.

                                       12
<PAGE>

         The Final Statement, as modified by resolution of any disputes by
         Heritage MLP and La Grange or by the Independent Accounting Firm, shall
         be the "Final Statement."

         (c)      Heritage MLP shall pay, or cause to be paid, to La Grange, the
amount by which the Estimated ETC OLP Accounts Payable exceeds the ETC OLP
Accounts Payable as set forth in the Final Statement, and La Grange shall pay,
or cause to be paid, to Heritage MLP the amount by which the Estimated ETC OLP
Accounts Payable is less than the ETC OLP Accounts Payable as set forth in the
Final Statement.

         (d)      The amounts, if any, referred to in Section 2.6(c), shall be
paid by the paying party under Section 2.6(c) by wire transfer in immediately
available funds to an account to be designated by the recipient.

                                    ARTICLE 3
             REPRESENTATIONS AND WARRANTIES OF THE HERITAGE PARTIES

         For the purposes of this Agreement, each of the Heritage Parties,
jointly and severally, represents and warrants as set forth in this Article 3.
The Heritage Parties do not make any representations and warranties in this
Article 3 with respect to the La Grange Entities.

         3.1      ORGANIZATION AND EXISTENCE. Schedule 3.1 sets forth the form
of organization, legal name and the Organization State of each of the Heritage
Entities and Heritage GP. Each of the Heritage Entities and Heritage GP is
either a general partnership, limited partnership, limited liability company or
corporation, as indicated on Schedule 3.1, duly organized or formed, validly
existing and in good standing under the laws of its Organization State. Each of
the Heritage Entities and Heritage GP has full power and authority to own, lease
or otherwise hold and operate its properties and assets and to carry on its
business as presently conducted, and in the case of Heritage GP, to act as
general partner of Heritage MLP and Heritage OLP, in each case in all material
respects as described in the SEC Reports. Each of the Heritage Entities and
Heritage GP is duly qualified and in good standing to do business as a foreign
general partnership, limited partnership, limited liability company or
corporation, as applicable, in each jurisdiction in which the conduct or nature
of its business or the ownership, leasing, holding or operating of its
properties makes such qualification necessary, except such jurisdictions where
the failure to be so qualified or in good standing, individually or in the
aggregate, would not have a Heritage Material Adverse Effect.

         3.2      CAPITALIZATION OF THE HERITAGE ENTITIES.

         (a)      All of the outstanding Common Units, Class C Units and
Incentive Distribution Rights have been duly authorized and validly issued in
accordance with the Amended and Restated Agreement of Limited Partnership of
Heritage MLP, as amended by Amendment No. 1, No. 2, No. 3 and No. 4 (the
"Heritage MLP Partnership Agreement"), are fully paid (to the extent required
under the Heritage MLP Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by matters described in Sections 17-303 and
17-607 of the Delaware LP Act), and, as of the respective dates of the SEC
Reports and the Heritage Financial Statements, were issued and held as described
therein. Prior to the Closing and prior to the restructuring contemplated by
Section 2.2, Heritage GP was the sole general partner of Heritage

                                       13
<PAGE>

MLP and Heritage OLP with a 1% general partner interest in Heritage MLP and a
1.0101% general partner interest in Heritage OLP. In conjunction with the
transactions to be completed prior to or at Closing pursuant to Section 2.2,
Heritage GP is the sole general partner of Heritage MLP and Heritage OLP with a
2% general partner interest in Heritage MLP and a 0.0% general partner interest
in Heritage OLP, and Heritage MLP owns, directly and indirectly, a 100% limited
partner interest in Heritage OLP. On the date hereof, the issued and outstanding
limited partner interests of Heritage MLP consist of [18,013,229] Common Units,
1,000,000 Class C Units and the Incentive Distribution Rights. On the date
hereof, there are no Class D Units or Special Units outstanding.

         (b)      The Common Units, Class D Units and Special Units to be issued
to La Grange at the Closing (and the limited partner interests represented
thereby), will be duly authorized in accordance with the Heritage MLP
Partnership Agreement, and, when issued and delivered to La Grange against
payment therefore in accordance with the terms hereof, will be validly issued,
fully paid (to the extent required under the Heritage MLP Partnership Agreement)
and nonassessable (except as such nonassessability may be affected by matters
described in Sections 17-303 and 17-607 of the Delaware LP Act) and will be
issued free and clear of any lien, claim or Encumbrance.

         (c)      Each Heritage Entity (other than Heritage MLP and Heritage
OLP) is a Heritage Wholly Owned Subsidiary. No Encumbrance exists upon any
outstanding share (or other percentage ownership interests) of Capital Stock of
any Heritage Entity which Heritage MLP directly or indirectly owns other than
(i) the Encumbrances, if any, set forth in Schedule 3.2(c), and (ii) Permitted
Encumbrances. Except as set forth in Schedule 3.2(c), Heritage MLP does not own,
of record or beneficially, directly or indirectly through any Person, and does
not control, directly or indirectly through any Person or otherwise, any Capital
Stock or derivative securities of any entity other than a Heritage Entity. All
of the outstanding shares of Capital Stock of the Heritage Entities that are
corporations or limited liability companies have been duly authorized and
validly issued and are fully paid and nonassessable. All of the outstanding
shares of Capital Stock of the Heritage Entities that are general or limited
partnerships have been duly authorized and validly issued in accordance with
such Heritage Entity's partnership agreement and such Capital Stock has been
fully paid for (to the extent required under such Heritage Entity's partnership
agreement and the Heritage OLP Partnership Agreement, as applicable, ) and is
nonassessable (except as such nonassessability may be affected by matters
described in Sections 17-303 and 17-607 of the Delaware LP Act or similar
partnership laws of its Organization State).

         (d)      Except (i) as described in the SEC Reports, (ii) arising under
any Heritage Plan, and (iii) for the Common Units, Class D Units and Special
Units to be issued pursuant to this Agreement and the Class E Units to be issued
to HHI in exchange for the Common Units currently held by HHI, there are no
preemptive rights or other rights to subscribe for or to purchase, nor any
restriction upon the voting or transfer of, any interests in Heritage MLP or
Heritage OLP pursuant to the Heritage MLP Partnership Agreement or the agreement
of limited partnership of Heritage OLP as amended by Amendment No. 1 and No. 2
thereto (the "Heritage OLP Partnership Agreement") or any other agreement or
instrument to which Heritage MLP or Heritage OLP is a party or by which either
of them may be bound. Neither the offering nor the sale of the Common Units,
Class D Units or Special Units, as contemplated by this Agreement, or the
issuance of Class E Units to HHI, gives rise to any rights for or relating to
the registration

                                       14
<PAGE>

of any Common Units or other securities of Heritage MLP or Heritage OLP, except
pursuant to this Agreement, to the Registration Rights Agreement among Heritage
MLP and the other parties named therein, dated as of August 10, 2000, or such
rights as have been waived or satisfied. Except (i) as set forth in the SEC
Reports (ii) pursuant to the Heritage Plans, and (iii) for the Common Units,
Class D Units and Special Units to be issued pursuant to this Agreement and the
Class E Units to be issued to HHI in exchange for the Common Units currently
held by HHI, no options, warrants or other rights to purchase, agreements or
other obligations to issue, or rights to convert any obligations into or
exchange any securities for, Capital Stock of Heritage MLP or Heritage OLP are
outstanding.

         (e)      The Common Units when issued and delivered against payment
therefor as provided herein, will conform in all material respects to the
description thereof contained in the Heritage MLP Partnership Agreement, as
amended by the Amendment contemplated by this Agreement and attached hereto as
Exhibit 3.2(e)(i) ("Amendment No. 5") or the Heritage OLP Partnership Agreement.
Heritage MLP has all requisite power and authority to issue, sell and deliver
the Common Units, Class D Units and Special Units in accordance with and upon
the terms and conditions set forth in this Agreement and the Heritage MLP
Partnership Agreement, as such Heritage MLP Partnership Agreement will be
amended by Amendment No. 5 thereto prior to the Closing. As of the Closing Date,
all corporate and partnership action, as the case may be, required to be taken
by the Heritage Parties or any of their respective stockholders or partners for
the authorization, issuance, sale and delivery of the Common Units, Class D
Units and Special Units shall have been validly taken, and no other
authorization by any of such parties is required therefore.

         3.3      AUTHORITY AND BINDING AGREEMENT. Each of Heritage GP and the
Heritage Parties has full power and authority to execute, deliver and perform
this Agreement and the Other Transaction Documents (collectively, the "Heritage
Documents") to which they are a party, and to consummate the transactions
contemplated thereby. The execution, delivery and performance by Heritage GP and
the Heritage Parties of the Heritage Documents, and the consummation by them of
the transactions contemplated thereby, have been duly authorized by all
necessary action. This Agreement has been duly executed and delivered by
Heritage GP and the Heritage Parties and constitutes, and each of the Heritage
Documents and each other agreement, instrument or document executed or to be
executed by Heritage GP and the Heritage Parties in connection with the
transactions contemplated by the Heritage Documents has been, or when executed
will be, duly executed and delivered by such Party and constitutes, or when
executed and delivered will constitute, a valid and legally binding obligation
of such Party enforceable against it in accordance with its terms, except that
such enforceability may be limited by (a) applicable bankruptcy, insolvency,
reorganization, moratorium and similar Laws affecting creditors' rights
generally and (b) equitable principles.

         3.4      AGREEMENTS OF LIMITED PARTNERSHIP. The Heritage MLP
Partnership Agreement has been, and prior to the Closing the Heritage MLP
Partnership Agreement, as amended by Amendment No. 5 thereto, will be, duly
authorized, executed and delivered by Heritage GP and is, and will be, a valid
and legally binding agreement of Heritage GP, enforceable against Heritage GP in
accordance with its terms; the Heritage OLP Partnership Agreement has been, and
prior to the Closing the Heritage OLP Partnership Agreement, as amended by
Amendment No. 3 thereto, will be duly authorized, executed and delivered by
Heritage GP and is, and will be,

                                       15
<PAGE>

a valid and legally binding agreement of Heritage GP, enforceable against
Heritage GP in accordance with its terms; provided, however, that the
enforceability thereof may be limited by bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws relating to or affecting
creditors' rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

         3.5      NON-CONTRAVENTION. The execution, delivery and performance by
the Heritage Parties of the Heritage Documents to which they are a party, and
the consummation by them of the transactions contemplated thereby do not and
will not (a) conflict with or result in a violation of any provision of the
respective certificate or agreement of limited partnership (in the case of the
Heritage MLP Partnership Agreement as amended by Amendment No. 5 and in the case
of the Heritage OLP Partnership Agreement, as amended through the date hereof),
charter or bylaws or other governing instruments of Heritage GP or the Heritage
Entities, (b) conflict with or result in a violation of any provision of, or
constitute (with or without the giving of notice or the passage of time or both)
a default under, or give rise (with or without the giving of notice or the
passage of time or both) to any right of termination, cancellation or
acceleration under, any bond, debenture, note, mortgage, indenture, lease,
contract, agreement or other instrument or obligation to which Heritage GP or
the Heritage Entities may be bound, (c) result in the creation or imposition of
any Encumbrance upon any of the Heritage Entities or Heritage Assets, (d)
assuming compliance with the matters referred to in Section 3.6, violate any
Applicable Law binding upon the Heritage Entities or (e) conflict with or result
in a violation of any Permit held by the Heritage Entities.

         3.6      GOVERNMENTAL APPROVALS. Except as set forth in Schedule 3.6
and except as may be obtained under state securities or "Blue Sky" laws and
under the HSR Act, no consent, approval, order or authorization of, or
declaration, filing or registration with, any Governmental Authority is required
to be obtained or made by the Heritage GP or the Heritage Entities in connection
with the execution, delivery or performance of this Agreement by the Heritage
Parties or the consummation by them of the transactions contemplated thereby.

         3.7      TITLE TO HERITAGE ASSETS. As of the Closing, the Heritage
Entities will have good and marketable title to, or valid leasehold interests
in, all of the Heritage Assets, free and clear of all Encumbrances other than
Permitted Encumbrances and Encumbrances set forth in Schedule 3.7.

         3.8      SEC REPORTS.

         (a)      Heritage MLP's annual report on Form 10-K for the year ended
August 31, 2002, and the quarterly and current reports on Form 10-Q and 8-K, if
any, filed by Heritage MLP with the Securities and Exchange Commission ("SEC")
since August 31, 2002 (collectively, the "SEC Reports") were timely filed with
the SEC. Such documents, at the time they were filed with the SEC, complied in
all material respects with the requirements of the Exchange Act and did not
include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. In
addition, each of the statements made in such documents within the coverage of
Rule 175(b) of the rules and regulations under the Securities Act of 1933, as
amended (the "Securities Act"), was made by Heritage MLP with a reasonable basis
and in

                                       16
<PAGE>

good faith. Other than the SEC Reports, none of the Heritage Entities nor any of
their respective subsidiaries is required to file any form, report or other
document with the SEC that has not been filed.

         (b)      There are no agreements, contracts, indentures, leases or
other instruments that are required to be described in the SEC Reports or to be
filed as exhibits to the SEC Reports that are not described or filed as required
by the Exchange Act.

         (c)      Since August 31, 2002, no transaction has occurred between or
among Heritage GP, Heritage MLP, Heritage MLP's Subsidiaries and any of their
respective officers, directors, stockholders or affiliates or, to the best
knowledge of the Heritage Parties, any affiliate of any such officer, director
or stockholder, that is required to be described in the SEC Reports that is not
so described.

         3.9      FINANCIAL STATEMENTS.

         (a)      Attached as Schedule 3.9(a) or filed with the SEC Reports are
copies of (i) the audited consolidated balance sheet as of August 31, 2002, the
unaudited consolidated balance sheet as of May 31, 2003, and (ii) the related
audited and unaudited, respectively, consolidated statements of income, cash
flows and owners' equity for the fiscal year and quarterly period then ended
(including in all cases the notes, if any, thereto) of the Heritage Entities
(the "Heritage Financial Statements"). The Heritage Financial Statements have
been prepared in accordance with GAAP applied on a basis consistent with past
practices except, in the case of unaudited interim financial statements, for
normal year-end adjustments, and fairly present the respective consolidated
financial position of Heritage MLP and its Subsidiaries as of the respective
dates set forth therein and the respective results of operations and cash flows
for Heritage MLP and its Subsidiaries for the respective fiscal periods set
forth therein.

         (b)      The books of account and other financial records of Heritage
MLP and its Subsidiaries from which the Heritage Financial Statements were
prepared: (i) reflect all items of income and expense and all assets and
liabilities required to be reflected therein in accordance with GAAP applied on
a basis consistent with past practices, (ii) are complete and correct, and do
not contain or reflect any inaccuracies or discrepancies that are inconsistent
with financial reporting requirements in accordance with GAAP and (iii) have
been maintained in accordance with good business and accounting practices.

         (c)      None of the Heritage Entities has any material liabilities or
obligations (whether accrued, absolute, contingent, unliquidated or otherwise,
whether or not known, and whether due or to become due), other than as set forth
in the Schedules to this Agreement, that will create or result in any
Encumbrances on the Heritage Assets or the Heritage Entities, except for
Permitted Encumbrances.

         (d)      Heritage MLP has heretofore furnished to La Grange complete
and correct copies of (i) all agreements, documents and other instruments not
yet filed by Heritage MLP with the SEC but that are currently in effect and that
Heritage MLP expects to file with the SEC after the date of this Agreement (with
the exception of documents contemplated by this Agreement to be filed with the
Form 8-K expected to be filed with the SEC after the signing of this Agreement
to

                                       17
<PAGE>

disclose the transactions contemplated by this Agreement) and (ii) all
amendments and modifications that have not been filed by Heritage MLP with the
SEC to all agreements, documents and other instruments that previously have been
filed by Heritage MLP with the SEC and are currently in effect.

         (e)      Schedule 3.9(e) sets forth a list of all outstanding
restricted units that have been granted under the Heritage Plans and the number
of Common Units issuable upon vesting thereof. Except for the Common Units,
Class D Units and Special Units issuable pursuant to this Agreement at the
Closing, and the Class E Units issuable to HHI, no other Common Units are or
will be issuable as a result of the Closing and the consummation of the
transactions contemplated by this Agreement.

         3.10     ABSENCE OF CERTAIN CHANGES. Since August 31, 2002, except as
disclosed in the SEC Reports and except for the execution and delivery of this
Agreement and the Other Transaction Documents, (a) there has been no event that
(A) would have a material adverse effect on the financial condition, business,
prospects, properties, net worth or results of operations of the Heritage
Entities, taken as a whole, except for general economic changes and changes that
may affect the industry of the Heritage Entities generally or (B) would
adversely affect the ability of the Heritage Parties to consummate the
transactions contemplated by this Agreement and the Other Transaction Documents
(clauses (A) and (B), or either of such clauses, a "Heritage Material Adverse
Effect"); (b) the Heritage Business has been conducted only in the ordinary
course consistent with past practice; (c) except for, or as contemplated by,
this Agreement, the Acquisition Agreement, and the HHI Purchase Agreement, none
of the Heritage Entities has incurred any material liability, engaged in any
material transaction or entered into any material agreement outside the ordinary
course of business consistent with past practice that individually or in the
aggregate would result in a Heritage Material Adverse Effect; (d) none of the
Heritage Entities has suffered any material loss, damage, destruction or other
casualty to any of the Heritage Assets (whether or not covered by insurance)
that individually or in the aggregate would result in a Heritage Material
Adverse Effect; and (e) none of the Heritage Entities has taken any of the
actions set forth in Section 5.5 except as permitted thereunder.

         3.11     TAX MATTERS.

         (a)      Except as set forth on Schedule 3.11(a), (i) each of the
Heritage Entities has filed when due, after giving effect to applicable
extensions, all material Tax Returns required to be filed with the IRS or other
applicable taxing authority through the date hereof; (ii) such Tax Returns are
true, complete and correct in all material respects; and (iii) each of the
Heritage Entities has timely paid or has provided an accrual for all Taxes which
are or have become due (whether or not shown on any such Tax Return), and has
withheld and paid to the appropriate taxing authority any Tax that it is
required by Applicable Law to withhold and pay to a taxing authority on or
before the date hereof other than, in either case, those (x) which, if not paid,
would not have a Heritage Material Adverse Effect or (y) which are being
contested in good faith; (iv) no claim has been made by any taxing authority in
a jurisdiction in which any of the Heritage Entities does not currently file a
Tax Return that it is or may be subject to Tax by such jurisdiction; (v) none of
the Heritage Entities has entered into any agreement or arrangement with any tax
authority that requires any of the Heritage Entities to take or refrain from
taking any action; (vi) none of the Heritage Entities is a party to any
agreement, whether written or

                                       18
<PAGE>

unwritten, providing for the payment of Taxes, payment of Tax losses,
entitlements to refunds or similar Tax matters; and (vii) none of the Heritage
Entities that is not a corporation has elected to be treated as a corporation.
None of the Heritage Entities has any material liability for Taxes other than
those incurred in the ordinary course of business and in respect of which
adequate reserves are being maintained in accordance with GAAP. There are no
material liens for Taxes upon any asset of any of the Heritage Entities except
for liens arising as a matter of Applicable Law relating to current Taxes not
yet due. There are no Taxes that will be imposed on any of the Heritage Entities
in connection with the execution of this Agreement or the Other Transaction
Documents or in connection with any of the transaction contemplated hereby or
thereby. Except as set forth on Schedule 3.11(a), none of the Heritage Entities
currently is the beneficiary of any extension of time within which to file any
Tax Return.

         (b)      Schedule 3.11(b) lists all federal or state income and
franchise Tax Returns filed by any of the Heritage Entities or any affiliated,
consolidated, combined, unitary or similar group of which any Heritage Entity is
or was a member on or after August 31, 1999, (i) that are as of the date hereof
the subject of audit, (ii) in respect of which there is any other suit, action,
investigation or claim in progress by any taxing authority or (iii) in respect
of which any issue has been raised by any taxing authority at an earlier time
that is reasonably expected to be raised at a later time. Except as set forth on
Schedule 3.11(b), none of the Heritage Entities has waived any statute of
limitations in respect of Taxes or agreed to any extension of time with respect
to a Tax assessment or deficiency or has received any notice from any taxing
authority that it intends to conduct an audit or investigation thereof or is
subject to any ruling of any taxing authority.

         (c)      Except as set forth on Schedule 3.11(c), none of the Heritage
Entities has made any payment, is obligated to make any payment, or is a party
to any agreement that under certain circumstances could obligate it to make any
payment that will not be deductible under Section 280G of the Code.

         (d)      Since August 31, 1999, none of the Heritage Entities (i) has
been a member of an affiliated group filing a consolidated federal income Tax
Return or (ii) has any liability for Taxes of any Person (other than Heritage GP
or a Heritage Entity) under Treas. Reg. 1.1502-6 (or any similar provision of
state, local or foreign law), as a transferee or successor, by contract, or
otherwise, excluding liability for Taxes to the extent set forth on Schedule
3.11(d) for stock acquisitions for which Heritage GP or HHI obtained
commercially reasonable indemnification (which indemnification was assigned or
otherwise made available to Heritage OLP) and which liability was assumed by
Heritage OLP upon the transfer of the assets of the acquired entity to Heritage
OLP.

         (e)      Since their formation and up to and including the current tax
year, Heritage MLP and Heritage OLP have each been treated as a partnership for
federal income tax purposes, and will immediately before, at, and immediately
after, the Closing also each be treated as a partnership for federal income tax
purposes. Moreover, as to the transactions for which provision is made in
Section 2.2(b), neither of Heritage MLP or Heritage OLP will be an "investment
partnership", that is a partnership that would be treated as an investment
company (within the meaning of Section 351 of the Code) if it were a corporation
for federal income tax purposes. Moreover, for each taxable year since their
formation more than 90% of the gross income of

                                       19
<PAGE>

Heritage MLP and Heritage OLP has constituted "qualifying income" within the
meaning of Section 7704(d) of the Code.

         3.12     COMPLIANCE WITH LAWS. Subject to the specific representations
and warranties in this Agreement, which representations and warranties shall
govern the subject matter thereof, the Heritage Entities have complied in all
material respects with all Applicable Laws relating to the ownership or
operation of the Heritage Assets and the conduct of the Heritage Business. None
of the Heritage Entities is charged or, to the knowledge of the Heritage
Parties, threatened with, or under investigation with respect to, any violation
of any Applicable Law relating to any aspect of the ownership or operation of
the Heritage Assets or Heritage Business.

         3.13     LEGAL PROCEEDINGS. Except as described in the SEC Reports,
there is (i) no Proceeding before or by any Governmental Authority or arbitrator
or official, domestic or foreign, now pending or, to the knowledge of the
Heritage Parties, threatened, to which any of the Heritage Entities or any of
their respective subsidiaries is or may be a party or to which the business or
property of any of the Heritage Entities or any of their respective subsidiaries
is or may be subject, (ii) no statute, rule, regulation or order that has been
enacted, adopted or issued by any Governmental Authority or that has been
proposed by any Governmental Authority and (iii) no injunction, restraining
order or order of any nature issued by a federal or state court or foreign court
of competent jurisdiction to which any of the Heritage Entities or any of their
respective subsidiaries is or may be subject, that, in the case of clauses (i),
(ii) and (iii) above, is reasonably expected to (A) individually or in the
aggregate have a Heritage Material Adverse Effect, (B) prevent or result in the
suspension of the issuance and sale of the Common Units, Class D Units or
Special Units, or (C) affect adversely the ability of the Heritage Parties to
consummate the Closing as contemplated herein.

         3.14     SUFFICIENCY OF HERITAGE ASSETS. The Heritage Assets constitute
all the assets and properties the use or benefit of which are reasonably
necessary for the operation of the Heritage Business as conducted on the date of
this Agreement. As of the Closing, all tangible assets and properties included
in the Heritage Assets will be in the possession, or under the control, of the
Heritage Entities. All Heritage Assets necessary for the conduct of the Heritage
Business are in good condition, normal wear and tear excepted, and are useable
in the continued operation of the Heritage Business consistent with past
practice.

         3.15     REAL PROPERTY.

         (a)      Set forth in Schedule 3.15(a) is the street address, a brief
description and a legal description of all real property owned by any of the
Heritage Entities and used or held for use in connection with the operation of
the Heritage Business, which if not so owned would have a Heritage Material
Adverse Effect.

         (b)      Set forth in Schedule 3.15(b) is the street address and a
brief description of the real property, including facilities and structures,
leased by any of the Heritage Entities and used or held for use in connection
with the operation of the Heritage Business, which if not so leased would have a
Heritage Material Adverse Effect.

                                       20
<PAGE>

         3.16     INTELLECTUAL PROPERTY. Except as set forth on Schedule 3.16,
each of the Heritage Entities owns or possesses or has the right to use, and at
the Closing Date will own or possess or have the right to use in the localities
where they are currently used by the Heritage Entities, all Intellectual
Property described in the SEC Reports as being owned by it or any of the
Heritage Entities or necessary for the conduct of its respective business, other
than those which if not so owned or possessed would not have a Heritage Material
Adverse Effect, and none of the Heritage Entities is aware of any claim to the
contrary or any challenge by any other Person to the rights of the Heritage
Entities with respect to the foregoing.

         3.17     PERMITS. Each of the Heritage Entities has, or at the Closing
Date will have, such Permits as are necessary to own its properties and to
conduct its business in the manner described in the SEC Reports, subject to such
qualifications as may be set forth in the SEC Reports and except for such
Permits which, if not obtained, would not have, individually or in the
aggregate, a Heritage Material Adverse Effect; each of the Heritage Entities
has, or at the Closing Date will have, fulfilled and performed all its material
obligations with respect to such Permits, and no event has occurred which
allows, or after notice or lapse of time would allow, revocation or termination
thereof or results in any impairment of the rights of the holder of any such
Permit, except for such revocations, terminations and impairments that would not
have a Heritage Material Adverse Effect; and, except as described in the SEC
Reports, none of such Permits contains any restriction that is materially
burdensome to the Heritage Entities considered as a whole.

         3.18     AGREEMENTS.

         (a)      Set forth in Schedule 3.18(a) is a list of all the following
Contracts to which any of the Heritage GP or the Heritage Entities is a party or
by which Heritage GP or the Heritage Entities are bound that are not terminable
at the option of Heritage GP or one of the Heritage Entities (or Heritage GP or
one of their Affiliates) within 30 days for convenience and without penalty:

                  (i)      collective bargaining agreements and similar
         agreements with Heritage Employees as a group;

                  (ii)     agreements, trusts, plans, funds or other employee
         benefit arrangements of any nature;

                  (iii)    agreements with any director or officer of Heritage
         GP;

                  (iv)     agreements relating to the acquisition of any Capital
         Stock of any Heritage Entity or options thereof;

                  (v)      indentures, mortgages, security agreements, notes,
         loan or credit agreements or other agreements relating to the borrowing
         of money by one of the Heritage Entities;

                  (vi)     license, royalty or other agreements relating to
         Intellectual Property, Technology or Software;

                                       21
<PAGE>

                  (vii)    partnership, joint venture and profit sharing
         agreements;

                  (viii)   agreements with any Governmental Authority;

                  (ix)     agreements in the nature of a settlement or a
         conciliation agreement arising out of any claim asserted by any other
         Person;

                  (x)      agreements not made in the ordinary course of the
         Heritage Business;

                  (xi)     other agreements, whether or not made in the ordinary
         course of business, that are material to the Heritage Business or the
         ownership or operation of the Heritage Assets; and

                  (xii)    agreements or commitments to enter into any of the
         foregoing.

         (b)      Each of such Contracts is a valid and binding agreement of the
applicable Heritage Entities. None of the Heritage Entities is in breach of or
in default in any material respect under, nor has any event occurred which (with
or without the giving of notice or the passage of time or both) would constitute
a material default by it under, any material provision of any of such
agreements, and none of the Heritage Entities has received any written notice
from any other party indicating that it is in breach of or in default under any
such material provision. Except as described on Schedule 3.18(b), no other party
to any of such agreements is, to the Knowledge of the Specified Heritage
Persons, in breach of or in default under such agreements in any material
respect, nor has any assertion been made by any of the Heritage Entities of any
such breach or default.

         3.19     ENVIRONMENTAL MATTERS.

         (a)      Except as set forth in Schedule 3.19(a), none of the Heritage
Entities is in violation of, or subject to, any pending or threatened Proceeding
under, or subject to any remedial obligations under, any Applicable Laws
pertaining to health, safety, the environment, Hazardous Substances or Solid
Wastes (such Applicable Laws as they now exist are herein collectively called
"Applicable Environmental Laws") relating to the ownership or operation of the
Heritage Assets or the operation of the Heritage Business, including (i) the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
as amended ("CERCLA"), and (ii) the Resource Conservation and Recovery Act of
1976, as amended ("RCRA"). Except as set forth on Schedule 3.19(a), the Heritage
Entities have obtained all Permits to construct, occupy, lease, operate or use
any real property or equipment or other tangible property forming a part of the
Heritage Assets by reason of any Applicable Environmental Laws.

         (b)      Except as set forth on Schedule 3.19(b), there are no past or
present events, conditions, circumstances or plans (i) that interfere with or
prevent compliance or continued compliance, with respect to, the Heritage Assets
or Heritage Business, with Applicable Environmental Laws or (ii) that could be
reasonably expected to give rise to any common law or other legal liability or
obligation with respect to the Heritage Assets or Heritage Business, including
liability or obligation under CERCLA or RCRA, based on or related to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling or

                                       22

<PAGE>

the emission, discharge, release or threatened release into the environment, of
any pollutant, contaminant, chemical, industrial toxin, Hazardous Substance or
Solid Waste.

         (c)      As used in this Agreement, the term "Hazardous Substance"
shall have the meaning currently specified in CERCLA and the term "Solid Waste"
shall have the meaning currently specified in RCRA; provided, that to the extent
the Applicable Laws of the jurisdiction in which the particular asset is located
have currently established a meaning for such term that is broader than that
specified in CERCLA or RCRA, such broader meaning shall apply.

         (d)      Except as set forth on Schedule 3.19(d), there are no (i)
non-propane underground storage tanks, known contamination of soil or
groundwater, or known or suspected asbestos or asbestos-containing material that
is not in an intact and undisturbed condition on any property owned or leased by
the Heritage Entities, (ii) pending or threatened complaints, suits, actions or
demand letters by any third party or Governmental Authority relating to any
alleged violation of Applicable Environmental Law by the Heritage Entities,
(iii) Permits required of the Heritage Entities under Applicable Environmental
Laws to own, lease or operate their properties and conduct their business as
described in the SEC Reports that the Heritage Entities do not possess or
Permits the terms and conditions of which the Heritage Entities have violated or
are violating (except, in each case as would not have a Heritage Material
Adverse Effect), or (iv) real estate sites owned or operated by any of the
Heritage Entities that have been used as a manufactured gas plant site.

         3.20     INSURANCE. The Heritage Parties maintain insurance covering
the properties, operations, personnel and businesses of the Heritage Entities.
In the reasonable judgment of the Heritage Parties, such insurance insures
against such losses and risks as are reasonably adequate to protect the Heritage
Entities and their businesses. None of the Heritage Entities has received notice
from any insurer or agent of such insurer that substantial capital improvements
or other expenditures will have to be made in order to continue such insurance;
all such insurance is outstanding and duly in force on the date hereof and will
be outstanding and duly in force on the Closing Date.

         3.21     ABSENCE OF LIABILITIES. None of the Heritage Entities has any
material liabilities or obligations (whether accrued, absolute, contingent,
unliquidated or otherwise, whether or not known, and whether due or to become
due), other than as set forth on Schedule 3.21, that will create or result in
any Encumbrances on the Heritage Assets, except for Permitted Encumbrances.

         3.22     BOOKS AND RECORDS.

         (a)      Each of the Heritage Entities (i) makes and keeps books,
records and accounts, which, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of assets and (ii) maintains systems of
internal accounting controls sufficient to provide reasonable assurances that
(A) transactions are executed in accordance with management's general or
specific authorization; (B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
accountability for assets; (C) access to assets is permitted only in accordance
with management's general or specific

                                       23

<PAGE>

authorization; and (D) the recorded accountability for assets is compared with
existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

         (b)      None of the Heritage Entities nor any Heritage Employee or
agent of any of the Heritage Entities has made any payment of funds of any of
the Heritage Entities or received or retained any funds in either case in
violation of any law, rule or regulation, which payment, receipt or retention of
funds is of a character required to be disclosed in the SEC Reports.

         3.23     LISTING. The outstanding Common Units are listed for trading
on the New York Stock Exchange.

         3.24     EMPLOYEE MATTERS.

         (a)      Except as set forth on Schedule 3.24(a), neither Heritage GP
nor any of the Heritage Entities has violated any federal, state or local law
relating to discrimination in the hiring, promotion or pay of employees nor any
applicable wage or hour laws, nor any provisions of ERISA or the rules and
regulations promulgated thereunder; neither Heritage GP nor any of the Heritage
Entities has engaged in any unfair labor practice, which in each case would have
a Heritage Material Adverse Effect; there is (i) no unfair labor practice
complaint pending against Heritage GP or any of the Heritage Entities or, to the
best knowledge of Heritage GP and the Heritage Parties, threatened against any
of them, before the National Labor Relations Board or any state or local labor
relations board, and no grievance or arbitration proceeding arising out of or
under any collective bargaining agreement pending against Heritage GP or any of
the Heritage Entities or, to the best knowledge of Heritage GP and the Heritage
Parties, threatened against any of them, (ii) no significant strike, labor
dispute, slowdown or stoppage pending against Heritage GP or any of the Heritage
Entities and (iii) except as described in Schedule 3.24(a), neither Heritage GP
nor any of the Heritage Entities has any obligation or liability under any union
pension plans or collective bargaining agreements related to the Heritage
Employees or the Heritage Business that will be an obligation or liability of or
binding on Heritage GP or any of the Heritage Entities after the Closing, except
in the cases of clauses (i), (ii) and (iii) such complaints, grievances,
arbitration proceedings, strikes, labor disputes, slowdowns, stoppages or
liabilities which if determined adversely to Heritage GP or the Heritage
Entities, would not individually or in the aggregate result in a Heritage
Material Adverse Effect.

         (b)      Schedule 3.24(b) lists all express employment agreements and
related noncompete agreements in excess of $75,000 per annum in salary not
terminable upon convenience and without penalty upon less than 60 days notice to
which Heritage GP or any of the Heritage Entities is a party or by which any of
such Persons is bound.

         3.25     CONSENTS. Schedule 3.25 sets forth each of the consents,
approvals, orders, authorizations and waivers of, and declarations, filings and
registrations with, all third parties (including Governmental Authorities) that
are necessary or required to permit the transactions contemplated by this
Agreement and otherwise to consummate the transactions contemplated hereby (the
"Heritage Consents"). Schedule 7.1(e) includes all of the Heritage Consents
that, if not obtained and in full force and effect at the time of the Closing,
could reasonably be expected to result in a Material Adverse Effect on the
Heritage Business.

                                       24

<PAGE>

         3.26     CONDUCT OF THE HERITAGE BUSINESS. Except as provided on
Schedule 3.26, since May 31, 2003, neither Heritage GP nor the Heritage Entities
have taken any actions that would be prohibited by the provisions of Section 5.5
if such actions had been taken after the date of this Agreement.

         3.27     DISCLOSURE. Neither this Agreement nor any Schedule or Exhibit
hereto nor any other certificate or instrument delivered to La Grange by or on
behalf of Heritage GP or any of the Heritage Parties in connection with the
transactions contemplated by this Agreement contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements contained herein not misleading.

         3.28     EMPLOYEE BENEFIT PLANS.

         (a)      Schedule 3.28(a) contains a true and complete list of all
employee benefit plans (within the meaning of Section 3(3) of ERISA), and all
bonus, stock option, unit option, stock purchase, unit purchase, restricted
stock, restricted unit, incentive, deferred compensation, medical or life
insurance, supplemental retirement, severance or other benefit plans, programs
or arrangements, and all employment, termination, severance or other contracts
or agreements to which Heritage GP or any of the Heritage Entities is a party,
with respect to which Heritage GP or any of the Heritage Entities has any
liability or which are maintained, contributed to or sponsored by Heritage GP or
any of the Heritage Entities for the benefit of any current or former Heritage
Employee, officer or director of Heritage GP or any of the Heritage Entities
(collectively, referred to herein as the "Heritage Plans"). Except as set forth
on Schedule 3.28(a), neither Heritage GP nor the Heritage Entities has any
express or implied commitment (i) to create, incur liability with respect to or
cause to exist any other employee benefit plan, program or arrangement, (ii) to
enter into any contract or agreement to provide compensation or benefits to any
individual or (iii) to modify, change or terminate any Heritage Plan, other than
with respect to a modification, change or termination required by ERISA or the
Code.

         (b)      Except as set forth in Schedule 3.28(b), none of the Heritage
Plans is a multiemployer plan, within the meaning of Section 3(37) or 4001(a)(3)
of ERISA, or is a single employer pension plan, within the meaning of Section
4001(a)(15) of ERISA, for which Heritage GP or any of the Heritage Entities
could incur liability under Section 4063 or 4064 of ERISA. Except to the extent
set forth in Schedule 3.28(b), none of the Heritage Plans (i) provides for the
payment of separation, severance, termination or similar-type benefits to any
person, (ii) obligates Heritage GP or any Heritage Entity to pay separation,
severance, termination or other benefits as a result of the transaction or (iii)
obligates Heritage GP or any Heritage Entity to make any payment or provide any
benefit that could be subject to a tax under Section 4999 of the Code. Except as
disclosed in Schedule 3.28(b), none of the Heritage Plans provides for or
promises retiree medical, disability or life insurance benefits to any current
or former Heritage Employee, officer or director of Heritage GP or any Heritage
Entity.

         (c)      Each Heritage Plan which is intended to be qualified under
Section 401(a) or 401(k) of the Code is and has always been so qualified.

         (d)      Except to the extent set forth on Schedule 3.28(d), each
Heritage Plan is now and always has been operated in all respects in accordance
with the requirements of Applicable Law,

                                       25

<PAGE>

including, without limitation, ERISA and the Code, and Heritage GP and each
Heritage Entity has performed all obligations required to be performed by it
under such Heritage Plan, is not in any respect in default under or in violation
of, and has no knowledge of any default or violation by any party to, any
Heritage Plan. Except as set forth on Schedule 3.28(d), no Heritage Plan is
subject to Title IV of ERISA or Section 412 of the Code.

         (e)      With respect to each Heritage Plan, there are no prohibited
transactions or breaches of fiduciary duties that could result in liability
(directly or indirectly) for Heritage GP or any Heritage Entity.

         (f)      Except as set forth on Schedule 3.28(f), each Heritage Plan
may be unilaterally terminated any time by a Heritage Entity without material
liability, other than for benefits accrued prior to such termination.

         (g)      Except as set forth on Schedule 3.28(g), all contributions to,
and payments from, each Heritage Plan that are required to be made in accordance
with the terms of the Heritage Plan and Applicable Law have been timely made.

         3.29     FINDER'S FEES. Except in accordance with the letter agreement
dated September 23, 2003 between the Special Committee of the Board of Directors
of Heritage GP and Merrill Lynch and except as set forth on Schedule 3.29, none
of the Heritage Entities, or any of their respective Affiliates, are obligated
(directly or indirectly) under any agreement with any Person that would obligate
any of the Heritage Entities or La Grange or any of their respective Affiliates
to pay any commission, brokerage or "finder's fee" in connection with the
transactions contemplated herein.

         3.30     REGULATION. Except as set forth on Schedule 3.30, none of the
Heritage Entities is now, or after the consummation of the transactions
contemplated by this Agreement and the Other Transaction Documents and
application of the net proceeds thereof will be, (i) an "investment company" or
a company "controlled by" an "investment company" within the meaning of the
Investment Company Act of 1940, as amended, or (ii) a "holding company" or a
"subsidiary company" of a "holding company" or an "affiliate" thereof, within
the meaning of the Public Utility Holding Company Act of 1935, as amended.

         3.31     NO VIOLATION. None of Heritage GP or the Heritage Entities is
in (i) violation of its partnership agreement, certificate or articles of
incorporation or bylaws or other organizational documents, or of any law,
statute, ordinance, administrative or governmental rule or regulation applicable
to it or of any decree of any Governmental Authority having jurisdiction over it
or (ii) breach, default (or an event which, with notice or lapse of time or
both, would constitute such a default) or violation in the performance of any
obligation, agreement or condition contained in any bond, debenture, note or any
other evidence of indebtedness or in any agreement, indenture, lease or other
instrument to which it is a party or by which it or any of its properties may be
bound, which breach, default or violation would, if continued, have a Heritage
Material Adverse Effect. No third party to any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which Heritage GP or
any of the Heritage Entities is a party or by which any of them is bound or to
which any of their properties are subject, is in

                                       26

<PAGE>

default under any such agreement, which breach, default or violation would, if
continued, have a Heritage Material Adverse Effect.

         3.32     OPINION OF FINANCIAL ADVISOR. The Special Committee has
received the opinion of Merrill Lynch to the effect that, as of the date of such
opinion, the consideration to be paid by Heritage MLP in connection with the
transactions contemplated by this Agreement is fair, from a financial point of
view, to the Common Unitholders of Heritage MLP.

         3.33     APPROVAL OF SPECIAL COMMITTEE. Subject to the rights of the
Special Committee under Section 6.15, the Special Committee has recommended that
the Board of Directors of Heritage GP approve the transactions contemplated
hereby.

                                   ARTICLE 4
                   REPRESENTATIONS AND WARRANTIES OF LA GRANGE

         For the purposes of this Agreement, La Grange represents and warrants
as set forth in this Article 4. La Grange does not make any representations and
warranties in this Article 4 with respect to the Heritage Entities.

         4.1      ORGANIZATION AND EXISTENCE. Schedule 4.1 sets forth the form
of organization, legal name and the Organization State of La Grange and each
Subsidiary of La Grange. Each of the La Grange Entities is either a limited
partnership, limited liability company or corporation, as indicated on Schedule
4.1, duly organized or formed, validly existing and in good standing under the
laws of its Organization State. Each of the La Grange Entities has full power
and authority to own, lease or otherwise hold and operate its properties and
assets and to carry on its business as presently conducted. Each of the La
Grange Entities is duly qualified and in good standing to do business as a
foreign limited partnership, limited liability company or corporation, as
applicable, in each jurisdiction in which the conduct or nature of its business
or the ownership, leasing, holding or operating of its properties makes such
qualification necessary, except such jurisdictions where the failure to be so
qualified or in good standing, individually or in the aggregate, would not have
a La Grange Material Adverse Effect.

         4.2      CAPITALIZATION OF THE LA GRANGE ENTITIES.

         (a)      Schedule 4.2(a) sets forth by each class and each series
within each class, (i) the La Grange Interests (ii) the name and address of
record and number and percentage ownership of those shares of each holder of
record thereof. No Encumbrance exists upon any outstanding La Grange Interests
other than the Encumbrances, if any, set forth in Schedule 4.2(a), all of which
will be released at or before the Closing.

         (b)      Except as set forth in Schedule 4.2(b), each La Grange Entity
is a La Grange Wholly Owned Subsidiary or will be as of Closing, by virtue of
the actions required to be taken pursuant to Section 2.2(a), a La Grange Wholly
Owned Subsidiary. In the case of any La Grange Entity that is not a La Grange
Wholly Owned Subsidiary, Schedule 4.2(b) sets forth, by each class and each
series within each class, the number of outstanding shares (or other percentage
ownership interests) of Capital Stock of the La Grange Entity, (i) La Grange's
aggregate direct and indirect ownership of those shares (or interests) and (ii)
the name and address of record and percentage ownership of those shares (or
interests) of each holder of record thereof other than La

                                       27

<PAGE>

Grange or a La Grange Entity. No Encumbrance exists upon any outstanding share
(or other percentage ownership interests) of Capital Stock of any La Grange
Entity which La Grange directly or indirectly owns other than the Encumbrances,
if any, set forth in Schedule 4.2(b), all of which will be released at or before
the Closing. Except as set forth in Schedule 4.2(b), La Grange does not own, of
record or beneficially, directly or indirectly through any Person, and does not
control, directly or indirectly through any Person or otherwise, any Capital
Stock or derivative securities of any entity other than a La Grange Entity. All
of the outstanding shares of Capital Stock of the La Grange Entities that are
corporations or limited liability companies have been duly authorized and
validly issued and are fully paid and non-assessable. All of the outstanding
shares of Capital Stock of the La Grange Entities that are general or limited
partnerships have been duly authorized and validly issued in accordance with
such La Grange Entity's partnership agreement and such Capital Stock has been
fully paid for (to the extent required under such La Grange Entity's partnership
agreement) and is nonassessable (except as such nonassessability may be affected
by matters described in Sections 17-303 and 17-607 of the Delaware LP Act or
similar partnership laws of its Organization State).

         (c)      Except as set forth in Schedule 4.2(c), there are no
subscriptions, options, convertible securities, warrants, calls, preemptive
rights or other rights of any kind to subscribe for or to purchase, nor any
restriction upon the voting or transfer of, any interests in the La Grange
Entities pursuant to any agreement or instrument to which the La Grange Entities
or La Grange is a party or by which any of them may be bound. Neither the
offering nor the sale of the La Grange Interests as contemplated by this
Agreement gives rise to any rights for or relating to the registration of any
Capital Stock of the La Grange Entities, except pursuant to this Agreement or
such rights as have been waived or satisfied.

         4.3      AUTHORITY AND BINDING AGREEMENT. La Grange has full power and
authority to execute, deliver and perform this Agreement and the Other
Transaction Documents (collectively, the "La Grange Documents") to which it is a
party, and to consummate the transactions contemplated thereby. The execution,
delivery and performance by La Grange of such La Grange Documents, and the
consummation by it of the transactions contemplated thereby, have been duly
authorized by all necessary action. This Agreement has been duly executed and
delivered by La Grange and constitutes, and each of the La Grange Documents and
each other agreement, instrument or document executed or to be executed by La
Grange in connection with the transactions contemplated by the La Grange
Documents has been, or when executed will be, duly executed and delivered by La
Grange and constitutes, or when executed and delivered will constitute, a valid
and legally binding obligation of such Party enforceable against it in
accordance with its terms, except that such enforceability may be limited by (a)
applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws
affecting creditors' rights generally and (b) equitable principles.

         4.4      NON-CONTRAVENTION. The execution, delivery and performance by
La Grange of the La Grange Documents to which it is a party, and the
consummation by it of the transactions contemplated thereby do not and will not
(a) conflict with or result in a violation of any provision of the respective
charter or bylaws or other governing instruments of the La Grange Entities, (b)
conflict with or result in a violation of any provision of, or constitute (with
or without the giving of notice or the passage of time or both) a default under,
or give rise (with or without the giving of notice or the passage of time or
both) to any right of termination,

                                       28

<PAGE>

cancellation or acceleration under, any bond, debenture, note, mortgage,
indenture, lease, contract, agreement or other instrument or obligation to which
the La Grange Entities may be bound, (c) result in the creation or imposition of
any Encumbrance upon any of the La Grange Entities or La Grange Assets, (d)
assuming compliance with the matters referred to in Section 4.4, violate any
Applicable Law binding upon them or the La Grange Entities or (e) conflict with
or result in a violation of any Permit held by the La Grange Entities.

         4.5      GOVERNMENTAL APPROVALS. Except as set forth in Schedule 4.5
and except as may be obtained under state securities or "Blue Sky" laws and
under the HSR Act, no consent, approval, order or authorization of, or
declaration, filing or registration with, any Governmental Authority is required
to be obtained or made by La Grange or the La Grange Entities in connection with
the execution, delivery or performance of this Agreement by La Grange or the
consummation by them of the transactions contemplated thereby.

         4.6      EXCLUSIVE OPERATION OF THE BUSINESS. Except as set forth in
Schedules 4.1, 4.2(b) or 4.6, the La Grange Entities do not have any direct or
indirect equity or ownership interest in any corporation, partnership, joint
venture or other entity that is involved, directly or indirectly, in the conduct
of the La Grange Business.

         4.7      TITLE TO LA GRANGE ASSETS. As of the Closing, the La Grange
Entities will have good and marketable title to, or valid leasehold and
right-of-way interests in, all of the La Grange Assets, free and clear of all
Encumbrances other than Permitted Encumbrances and Encumbrances set forth in
Schedule 4.7.

         4.8      FINANCIAL STATEMENTS.

         (a)      Attached as Schedule 4.8(a) are copies of (i) the audited
combined balance sheet as of December 31, 2002 (the "Financial Statement Date")
and the related combined statement of income, cash flows and partners' equity
for the period from October 1, 2002 through December 31, 2002 (including in all
cases the notes, if any, thereto) of ETC OLP and its subsidiaries, and (ii) the
unaudited combined balance sheet of ETC OLP and its subsidiaries as of June 20,
2003 and the related combined statement of income and cash flows for the six
months ended June 20, 2003 (the "La Grange Financial Statements"). The La Grange
Financial Statements have been prepared in accordance with GAAP applied on a
basis consistent with past practices and fairly present the respective
consolidated financial position of La Grange as of the date set forth therein
and the respective results of operations and cash flows of La Grange for the
fiscal period set forth therein.

         (b)      Attached as Schedule 4.8(b) are copies of (i) the audited
consolidated balance sheet as of September 30, 2002 and December 31, 2001 and
the related consolidated statement of income, cash flows and stockholders'
equity for the fiscal periods ended September 30, 2002 and December 31, 2001 and
2000 (including in all cases the notes, if any, thereto) of Aquila Gas Pipeline
Corporation and its subsidiaries ("Aquila"); and (ii) the unaudited consolidated
balance sheet of Aquila and its subsidiaries as of June 20, 2002 and the related
consolidated statement of income and cash flows for the six months ended June
20, 2002 (the "Aquila Financial Statements"). To the knowledge of La Grange, the
Aquila Financial Statements have been prepared in accordance with GAAP applied
on a basis consistent with past practices and fairly

                                       29

<PAGE>

present the respective consolidated financial position of Aquila as of the date
set forth therein and the respective results of operations and cash flows of
Aquila for the fiscal period set forth therein.

         (c)      Attached as Schedule 4.8(c) are copies of the audited
consolidated balance sheet as of December 27, 2002 and December 31, 2001 and the
related consolidated statement of income, cash flows and changes in
shareholders' equity for the fiscal periods ended December 27, 2002 and December
31, 2001 and 2000 (including in all cases the notes, if any, thereto) of Oasis
Pipe Line Company ("Oasis") and its subsidiaries (the "Oasis Financial
Statements"). To the knowledge of La Grange, the Oasis Financial Statements have
been prepared in accordance with GAAP applied on a basis consistent with past
practices and fairly present the respective consolidated financial position of
Oasis as of the date set forth therein and the respective results of operations
and cash flows of Oasis for the fiscal period set forth therein.

         (d)      The books of account and other financial records of the La
Grange Entities from which the La Grange Financial Statements were prepared: (i)
reflect all items of income and expense related to the La Grange Business and La
Grange Assets and all assets and liabilities relating to the La Grange Business
and La Grange Assets required to be reflected therein in accordance with GAAP
applied on a basis consistent with past practices; (ii) are complete and
correct, and do not contain or reflect any inaccuracies or discrepancies that
are inconsistent with financial reporting requirements in accordance with GAAP
and (iii) have been maintained in accordance with good business and accounting
practices.

         (e)      None of the La Grange Entities has any material liabilities or
obligations (whether accrued, absolute, contingent, unliquidated or otherwise,
whether or not known, and whether due or to become due), other than as set forth
in the Schedules to this Agreement, that will create or result in any
Encumbrances on the La Grange Assets or the La Grange Entities, except for
Permitted Encumbrances.

         4.9      ABSENCE OF CERTAIN CHANGES. Since the Financial Statement
Date, (a) there has been no event that (A) would have a material adverse effect
on the financial condition, business, prospects, properties, net worth or
results of operations of the La Grange Entities, taken as a whole, except for
general economic changes and changes that may affect the industry of the La
Grange Entities generally or (B) would adversely affect the ability of La Grange
to consummate the transactions contemplated by this Agreement and the Other
Transaction Documents (clauses (A) and (B), or either of such clauses, a "La
Grange Material Adverse Effect"); (b) the La Grange Business has been conducted
only in the ordinary course consistent with past practice; (c) except for, or as
contemplated by, this Agreement, none of the La Grange Entities has incurred any
material liability, engaged in any material transaction or entered into any
material agreement outside the ordinary course of business consistent with past
practice that individually or in the aggregate would result in a La Grange
Material Adverse Effect; (d) none of the La Grange Entities has suffered any
material loss, damage, destruction or other casualty to any of the La Grange
Assets (whether or not covered by insurance) that individually or in the
aggregate would result in a La Grange Material Adverse Effect; and (e) none of
the La Grange Entities has taken any of the actions set forth in Section 5.2
except as permitted thereunder.

                                       30

<PAGE>

         4.10     TAX MATTERS.

         (a)      Except as set forth on Schedule 4.10(a), (i) each of the La
Grange Entities has filed when due, after giving effect to applicable
extensions, all material Tax Returns required to be filed with the IRS or other
applicable taxing authority through the date hereof; (ii) all such Tax Returns
are true, complete and correct in all material respects; (iii) each of the La
Grange Entities has timely paid or has provided an accrual for all Taxes which
are or have become due (whether or not shown on any such Tax Return), and has
withheld and paid to the appropriate taxing authority any Tax that it is
required by Applicable Law to withhold and pay to a taxing authority on or
before the date hereof other than, in either case, those (x) which, if not paid,
would not have a La Grange Material Adverse Effect or (y) which are being
contested in good faith; (iv) no claim has been made by any taxing authority in
a jurisdiction in which any of the La Grange Entities does not currently file a
Tax Return that it is or may be subject to Tax by such jurisdiction; (v) none of
the La Grange Entities has entered into any agreement or arrangement with any
tax authority that requires any of the La Grange Entities to take or refrain
from taking any action; (vi) none of the La Grange Entities is a party to any
agreement, whether written or unwritten, providing for the payment of Taxes,
payment of Tax losses, entitlements to refunds or similar Tax matters; and (vii)
none of the La Grange Entities that is not a corporation has elected or will
elect to be treated as a corporation. None of the La Grange Entities has any
material liability for Taxes other than those incurred in the ordinary course of
business and in respect of which adequate reserves are being maintained in
accordance with GAAP. There are no material liens for Taxes upon any asset of
any of the La Grange Entities except for liens arising as a matter of Applicable
Law relating to current Taxes not yet due. There are no Taxes that will be
imposed on any of the La Grange Entities in connection with the execution of
this Agreement or the Other Transaction Documents or in connection with any of
the transaction contemplated hereby or thereby. Except as set forth on Schedule
4.10(a), none of the La Grange Entities currently is the beneficiary of any
extension of time within which to file any Tax Return.

         (b)      Schedule 4.10(b) lists all federal or state income and
franchise Tax Returns filed by any of the La Grange Entities or any affiliated,
consolidated, combined, unitary or similar group of which any La Grange Entity
is or was a member on or after August 31, 1999 and on or before the date hereof,
(i) that are as of the date hereof the subject of audit, (ii) in respect of
which there is any other suit, action, investigation or claim in progress by any
taxing authority or (iii) in respect of which any issue has been raised by any
taxing authority at an earlier time that is reasonably expected to be raised at
a later time. None of the La Grange Entities has waived any statute of
limitations in respect of Taxes or agreed to any extension of time with respect
to a Tax assessment or deficiency or has received any notice from any taxing
authority that it intends to conduct an audit or investigation thereof or is
subject to any ruling of any taxing authority.

         (c)      None of the La Grange Entities has made any payment, is
obligated to make any payment, or is a party to any agreement that under certain
circumstances could obligate it to make any payment that will not be deductible
under Section 280G of the Code.

         (d)      Except as set forth on Schedule 4.10(d), since August 31,
1999, none of the La Grange Entities (i) has been a member of an affiliated
group filing a consolidated federal income Tax Return or (ii) has any liability
for Taxes of any Person (other than a La Grange Entity) under

                                       31

<PAGE>

Treas. Reg. 1.1502-6 (or any similar provision of state, local or foreign law),
as a transferee or successor, by contract, or otherwise.

         4.11     COMPLIANCE WITH LAWS. Subject to the specific representations
and warranties in this Agreement, which representations and warranties shall
govern the subject matter thereof, the La Grange Entities have complied in all
material respects with all Applicable Laws relating to the ownership or
operation of the La Grange Assets and the conduct of the La Grange Business.
None of the La Grange Entities is charged or, to the knowledge of the La Grange
Entities, threatened with, or under investigation with respect to, any violation
of any Applicable Law relating to any aspect of the ownership or operation of
the La Grange Assets or the La Grange Business.

         4.12     LEGAL PROCEEDINGS. Except as set forth in Schedule 4.12, there
is (i) no Proceeding before or by any Governmental Authority or arbitrator or
official, domestic or foreign, now pending or, to the knowledge of the La Grange
Entities, threatened, to which any of the La Grange Entities or any of their
respective subsidiaries is or may be a party or to which the business or
property of any of the La Grange Entities or any of their respective
subsidiaries is or may be subject, (ii) no statute, rule, regulation or order
that has been enacted, adopted or issued by any Governmental Authority or that
has been proposed by any Governmental Authority and (iii) no injunction,
restraining order or order of any nature issued by a federal or state court or
foreign court of competent jurisdiction to which any of the La Grange Entities
or any of their respective subsidiaries is or may be subject, that, in the case
of clauses (i), (ii) and (iii) above, is reasonably expected to (A) individually
or in the aggregate have a La Grange Material Adverse Effect or (B) affect
adversely the ability of La Grange to consummate the Closing as contemplated
herein.

         4.13     SUFFICIENCY OF LA GRANGE ASSETS. The La Grange Assets
constitute all the assets and properties the use or benefit of which are
reasonably necessary for the operation of the La Grange Business as conducted on
the date of this Agreement. As of the Closing, all tangible assets and
properties included in the La Grange Assets will be in the possession, or under
the control, of the La Grange Entities. All La Grange Assets necessary for the
conduct of the La Grange Business are in good condition, normal wear and tear
excepted, and are useable in the continued operation of the La Grange Business
consistent with past practice.

         4.14     REAL PROPERTY.

         (a)      Set forth in Schedule 4.14(a) is the street address, a brief
description and a legal description of all real property owned by any of the La
Grange Entities and used or held for use in connection with the operation of the
La Grange Business other than those which if not so owned would not have a La
Grange Material Adverse Effect.

         (b)      Set forth in Schedule 4.14(b) is the street address and a
brief description of the real property, including facilities and structures,
leased by any of the La Grange Entities and used or held for use in connection
with the operation of the La Grange Business other than those which if not so
leased would not have a La Grange Material Adverse Effect.

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         4.15     TANGIBLE PERSONAL PROPERTY. Set forth in Schedule 4.15 is a
list of all furniture, fixtures, leasehold improvements, equipment, machinery,
computer hardware, prototypes, spare parts, supplies, materials, motor vehicles,
apparatus, tools, implements, appliances and other tangible personal property
(other than inventories) owned or leased by any of the La Grange Entities and
used or held for use in connection with the operation of the La Grange Business,
except for items having a value individually of less than $10,000 and having, in
the aggregate of like items, a value of less than $200,000.

         4.16     INTELLECTUAL PROPERTY. Except as set forth in Schedule 4.16,
each of the La Grange Entities owns or possesses or has the right to use, or at
the Closing Date will own or possess or have the right to use in the localities
where they are currently used by the La Grange Entities, all Intellectual
Property necessary for the conduct of the La Grange Business, other than those
which if not so owned or possessed would not have a La Grange Material Adverse
Effect, and La Grange is not aware of any claim to the contrary or any challenge
by any other Person to the rights of the La Grange Entities with respect to the
foregoing.

         4.17     PERMITS. Schedule 4.17(a) lists all of the Permits held by the
La Grange Entities. The Permits described in Schedule 4.17(a) are all of the
Permits which are necessary to own its properties and to conduct its business in
the manner in which it is currently conducted and except for such Permits which,
if not obtained, would not have, individually or in the aggregate, a La Grange
Material Adverse Effect; each of the La Grange Entities has, or at the Closing
Date will have, fulfilled and performed all its material obligations with
respect to such Permits, and no event has occurred which allows, or after notice
or lapse of time would allow, revocation or termination thereof or results in
any impairment of the rights of the holder of any such Permit, except for such
revocations, terminations and impairments that would not have a La Grange
Material Adverse Effect; and, except as described in Schedule 4.17(b), none of
such Permits contains any restriction that is materially burdensome to the La
Grange Entities considered as a whole.

         4.18     AGREEMENTS.

         (a)      Set forth in Schedule 4.18(a) is a list of all the following
Contracts to which any of the La Grange Entities is a party or by which the La
Grange Entities are bound that are not terminable at the option of one of the La
Grange Entities (or one of their Affiliates) within 30 days for convenience and
without penalty:

                  (i)      collective bargaining agreements and similar
         agreements with La Grange Employees as a group;

                  (ii)     agreements, trusts, plans, funds or other employee
         benefit arrangements of any nature;

                  (iii)    agreements with any La Grange Employee, or any
         director or officer of one of the La Grange Entities or any of their
         Affiliates;

                  (iv)     agreements relating to the acquisition of any Capital
         Stock of any La Grange Entity or options thereof;

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<PAGE>

                  (v)      agreements between or among one of the La Grange
         Entities and any of their Affiliates;

                  (vi)     indentures, mortgages, security agreements, notes,
         loan or credit agreements or other agreements relating to the borrowing
         of money by one of the La Grange Entities or to the direct or indirect
         guarantee or assumption by any one of the La Grange Entities of any
         obligation of one of their Affiliates;

                  (vii)    agreements relating to the acquisition or disposition
         of any assets, involving obligations or revenues of $100,000 or more;

                  (viii)   agreements with respect to the lease of any real or
         personal property, involving annual obligations or revenues of $100,000
         or more;

                  (ix)     agreements concerning the management or operation of
         any real property, involving annual obligations or revenues of $100,000
         or more;

                  (x)      supplier, broker, distributor, dealer, manufacturer's
         representative, sales, agency, sales promotion, advertising, marketing,
         consulting, research and development, maintenance, service and repair
         agreements, involving annual obligations or revenues of $100,000 or
         more;

                  (xi)     license, royalty or other agreements relating to
         Intellectual Property, Technology or Software;

                  (xii)    partnership, joint venture and profit sharing
         agreements;

                  (xiii)   agreements with any Governmental Authority;

                  (xiv)    agreements in the nature of a settlement or a
         conciliation agreement arising out of any claim asserted by any other
         Person;

                  (xv)     agreements containing any covenant that would limit
         the freedom of any of the La Grange Entities to engage in any line of
         business or compete with any other Person in any geographic area or
         during any period of time;

                  (xvi)    agreements not made in the ordinary course of the La
         Grange Business;

                  (xvii)   other agreements, whether or not made in the ordinary
         course of business, that are material to the La Grange Business or the
         ownership or operation of the La Grange Assets; and

                  (xviii)  agreements or commitments to enter into any of the
         foregoing.

         (b)      Each of such Contracts is a valid and binding agreement of the
applicable La Grange Entities. None of the La Grange Entities is in breach of or
in default in any material respect under, nor has any event occurred which (with
or without the giving of notice or the passage of time or both) would constitute
a material default by it under, any material provision of

                                       34

<PAGE>

any of such agreements, and none of the La Grange Entities has received any
written notice from any other party indicating that it is in breach of or in
default under any such material provision. Except as described on Schedule
4.18(b), no other party to any of such agreements is, to the Knowledge of the
Specified La Grange Persons, in breach of or in default under such agreements in
any material respect, nor has any assertion been made by any of the La Grange
Entities of any such breach or default.

         4.19     ENVIRONMENTAL MATTERS.

         (a)      Except as set forth in Schedule 4.19(a), none of the La Grange
Entities is in violation of, or subject to, any pending or threatened Proceeding
under, or subject to any remedial obligations under, any Applicable
Environmental Laws relating to the ownership or operation of the La Grange
Assets or the operation of the La Grange Business, including (i) CERCLA, and
(ii) the RCRA. Except as set forth in Schedule 4.19(a), the La Grange Entities
have obtained all Permits to construct, occupy, lease, operate or use any real
property or any equipment or other tangible property forming a part of the La
Grange Assets by reason of any Applicable Environmental Laws.

         (b)      Except as set forth in Schedule 4.19(b), there are no past or
present events, conditions, circumstances or plans (i) that interfere with or
prevent compliance or continued compliance, with respect to the La Grange
Assets, La Grange Business or La Grange Entities, with Applicable Environmental
Laws or (ii) that could be reasonably expected to give rise to any common law or
other legal liability or obligation with respect to the La Grange Assets, La
Grange Business or La Grange Entities, including liability or obligation under
CERCLA or RCRA, based on or related to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling, or the
emission, discharge, release or threatened release into the environment, of any
pollutant, contaminant, chemical, industrial toxin, Hazardous Substance or Solid
Waste.

         (c)      Except as set forth in Schedule 4.19(c), there are no (i)
underground storage tanks, known contamination of soil or groundwater, or known
or suspected asbestos or asbestos-containing material that is not in an intact
and undisturbed condition on any property owned or leased by the La Grange
Entities, (ii) pending or threatened complaints, suits, actions or demand
letters by any third party or Governmental Authority relating to any alleged
violation of Applicable Environmental Law by any La Grange Entity, (iii) Permits
required of the La Grange Entities under Applicable Environmental Laws to own,
lease or operate their properties and conduct the La Grange Business the terms
and conditions of which the La Grange Entities have violated or are violating
(except, in each case as would not have a La Grange Material Adverse Effect), or
(iv) real estate sites transferred under this Agreement that have been used as a
manufactured gas plant site.

         4.20     INSURANCE. The La Grange Entities maintain insurance covering
the properties, operations, personnel and businesses of the La Grange Entities.
In the reasonable judgment of the La Grange Entities, such insurance insures
against such losses and risks as are reasonably adequate to protect the La
Grange Entities and the La Grange Business. None of the La Grange Entities has
received notice from any insurer or agent of such insurer that substantial
capital improvements or other expenditures will have to be made in order to
continue such insurance; all

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<PAGE>

such insurance is outstanding and duly in force on the date hereof and will be
outstanding and duly in force on the Closing Date.

         4.21     ABSENCE OF LIABILITIES. None of the La Grange Entities has any
material liabilities or obligations (whether accrued, absolute, contingent,
unliquidated or otherwise, whether or not known, and whether due or to become
due), other than as set forth on Schedule 4.21, that will create or result in
any Encumbrances on the La Grange Assets, except for Permitted Encumbrances.

         4.22     BOOKS AND RECORDS.

         (a)      Each of the La Grange Entities (i) makes and keeps books,
records and accounts, which, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of assets and (ii) maintains systems of
internal accounting controls sufficient to provide reasonable assurances that
(A) transactions are executed in accordance with management's general or
specific authorization; (B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
accountability for assets; (C) access to assets is permitted only in accordance
with management's general or specific authorization; and (D) the recorded
accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

         (b)      None of the La Grange Entities nor any La Grange Employee or
agent of any of the La Grange Entities has made any payment of funds of any of
the La Grange Entities or received or retained any funds in either case in
violation of any law, rule or regulation, which payment, receipt or retention of
funds is of a character which would be required to be disclosed in any reports
which would be required to be filed by the La Grange Entities if the La Grange
Entities were subject to the reporting requirements of the Exchange Act.

         4.23     INVESTMENT INTENT.

         (a)      La Grange is acquiring the Common Units, Class D Units and
Special Units to be acquired by it at the Closing for its own account for
investment and not with a view to, or for sale or other disposition in
connection with, any public distribution of all or any part thereof.

         (b)      La Grange, by entering into this Agreement, (i) requests
admission as a limited partner of Heritage MLP and agrees to comply with, and be
bound by, and hereby executes, the Heritage MLP Partnership Agreement, (ii)
represents and warrants that it has all right, power and authority and the
capacity necessary to enter into the Heritage MLP Partnership Agreement, (iii)
appoints Heritage GP (as general partner of Heritage MLP) and, if a Liquidator
shall be appointed, the Liquidator of Heritage MLP as such La Grange's
attorney-in-fact to execute, swear to, acknowledge and file any document,
including, without limitation, the Heritage MLP Partnership Agreement and any
amendment thereto, necessary or appropriate for its admission as an Additional
Limited Partner and as a party to the Heritage MLP Partnership Agreement, (iv)
gives the power of attorney provided for in the Heritage MLP Partnership
Agreement and Heritage OLP Partnership Agreement and (v) makes the waivers and
gives the consents and approvals contained in the Heritage MLP Partnership
Agreement. Capitalized terms not defined

                                       36

<PAGE>

in this paragraph have the meanings assigned to such terms in the Heritage MLP
Partnership Agreement.

         4.24     EMPLOYEE MATTERS.

         (a)      Except as set forth on Schedule 4.24(a) and as contemplated by
this Agreement, neither La Grange nor any of the La Grange Entities has violated
any federal, state or local law relating to discrimination in the hiring,
promotion or pay of employees nor any applicable wage or hour laws, nor any
provisions of ERISA or the rules and regulations promulgated thereunder; neither
La Grange nor any of the La Grange Entities has engaged in any unfair labor
practice, which in each case would have a La Grange Material Adverse Effect;
there is (i) no unfair labor practice complaint pending against La Grange or any
of the La Grange Entities or, to the best knowledge of La Grange or the La
Grange Entities, threatened against any of them, before the National Labor
Relations Board or any state or local labor relations board, and no grievance or
arbitration proceeding arising out of or under any collective bargaining
agreement pending against La Grange or any of the La Grange Entities or, to the
best knowledge of La Grange or the La Grange Entities, threatened against any of
them, (ii) no significant strike, labor dispute, slowdown or stoppage pending
against La Grange or any of the La Grange Entities and (iii) except as described
in Schedule 4.24(a), neither La Grange or any of the La Grange Entities has any
obligation or liability under union pension plans or collective bargaining
agreements related to the La Grange Employees or the La Grange Business that
will be an obligation or liability of or binding on La Grange or any of the La
Grange Entities after the Closing, except in the cases of clauses (i), (ii) and
(iii) such complaints, grievances, arbitration proceedings, strikes, labor
disputes, slowdowns, stoppages or liabilities which if determined adversely to
La Grange or any of the La Grange Entities, would not individually or in the
aggregate result in a La Grange Material Adverse Effect.

         (b)      As of Closing, except as set forth on Schedule 4.24(b) and as
contemplated by this Agreement, there will be no employment agreements in excess
of $75,000 per annum in salary not terminable upon convenience and without
penalty upon less than 60 days notice and non-compete agreements to which any of
the La Grange Entities is a party or by which any of such Persons is bound.
Schedule 4.24(c) sets forth a correct and complete list of all of the La Grange
Employees, including name, title or position and date of hire.

         (c)      The La Grange Employees set forth on Schedule 4.24(c)
constitute all employees who are reasonably necessary to be employed for the
operation of the La Grange Business as currently conducted.

         4.25     CONSENTS. Schedule 4.25 sets forth each of the consents,
approvals, orders, authorizations and waivers of, and declarations, filings and
registrations with, all third parties (including Governmental Authorities) that
are necessary or required to permit the transactions contemplated by this
Agreement and otherwise to consummate the transactions contemplated hereby (the
"Consents"). Schedule 7.2(e) includes all of the Consents that, if not obtained
and in full force and effect at the time of the Closing, could reasonably be
expected to result in a La Grange Material Adverse Effect on the La Grange
Business.

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<PAGE>

         4.26     CONDUCT OF THE LA GRANGE BUSINESS. Except as provided on
Schedule 4.26, since June 30, 2003, the La Grange Entities have not taken any
actions that would be prohibited by the provisions of Section 5.2 if such
actions had been taken after the date of this Agreement.

         4.27     DISCLOSURE. Neither this Agreement nor any Schedule or Exhibit
hereto nor any other certificate or instrument delivered to the Heritage
Entities by or on behalf of La Grange in connection with the transactions
contemplated by this Agreement contains any untrue statement of a material fact
or omits to state a material fact necessary in order to make the statements
contained herein not misleading.

         4.28     EMPLOYEE BENEFIT PLANS.

         (a)      Schedule 4.28(a)(i) contains a true and complete list of all
employee benefit plans (within the meaning of Section 3(3) of ERISA), and all
bonus, stock option, stock purchase, restricted stock, incentive, deferred
compensation, retiree medical or life insurance, supplemental retirement,
severance or other benefit plans, programs or arrangements, and all employment,
termination, severance or other contracts or agreements to which any of the La
Grange Entities is a party, with respect to which any of the La Grange Entities
has any liability or which are maintained, contributed to or sponsored by any of
the La Grange Entities for the benefit of any current or former La Grange
Employee, officer or director of any of the La Grange Entities (collectively,
referred to herein as the "La Grange Plans"). Except as set forth in Schedule
4.28(a)(ii), none of the La Grange Entities has any express or implied
commitment (i) to create, incur liability with respect to or cause to exist any
other employee benefit plan, program or arrangement, (ii) to enter into any
contract or agreement to provide compensation or benefits to any individual or
(iii) to modify, change or terminate any La Grange Plan, other than with respect
to a modification, change or termination required by ERISA or the Code.

         (b)      Except as set forth in Schedule 4.28(b), none of the La Grange
Plans is a multiemployer plan, within the meaning of Section 3(37) or 4001(a)(3)
of ERISA, or is a single employer pension plan, within the meaning of Section
4001(a)(15) of ERISA, for which any of the La Grange Entities could incur
liability under Section 4063 or 4064 of ERISA. Except to the extent set forth in
the La Grange Plans listed in Schedule 4.28(a)(i), none of the La Grange Plans
(i) provides for the payment of separation, severance, termination or
similar-type benefits to any person, (ii) obligates any La Grange Entity to pay
separation, severance, termination or other benefits as a result of the
transaction or (iii) obligates any La Grange Entity to make any payment or
provide any benefit that could be subject to a tax under Section 4999 of the
Code. Except as set forth in Schedule 4.28(b), none of the La Grange Plans
provides for or promises retiree medical, disability or life insurance benefits
to any current or former La Grange Employee, officer or director of any La
Grange Entity.

         (c)      Each La Grange Plan which is intended to be qualified under
Section 401 (a) or 401(k) of the Code is and has always been so qualified.

         (d)      Except as set forth on Schedule 4.28(d), each La Grange Plan
is now and always has been operated in all respects in accordance with the
requirements of Applicable Law, including, without limitation, ERISA and the
Code, and each La Grange Entity has performed all obligations required to be
performed by it under such La Grange Plan, is not in any respect in

                                       38

<PAGE>

default under or in violation of, and has no knowledge of any default or
violation by any party to, any La Grange Plan. Except as set forth on Schedule
4.28(d), no La Grange Plan is subject to Title IV of ERISA or Section 412 of the
Code.

         (e)      With respect to each La Grange Plan, there are no prohibited
transactions or breaches of fiduciary duties that could result in liability
(directly or indirectly) for any La Grange Entity.

         (f)      Except as set forth on Schedule 4.28(f), each La Grange Plan
may be unilaterally terminated at any time by a La Grange Entity without
material liability, other than for benefits accrued prior to such termination.

         (g)      Except as set forth in Schedule 4.28(g), all contributions to,
and payments from, each La Grange Plan that are required to be made in
accordance with the terms of the La Grange Plan and Applicable Law have been
timely made.

         4.29     FINDER'S FEES. Except as set forth on Schedule 4.29, none of
the La Grange Entities, or any of their respective Affiliates, are obligated
(directly or indirectly) under any agreement with any Person that would obligate
the La Grange Entities, Heritage GP or any of the Heritage Entities to pay any
commission, brokerage or "finder's fee" in connection with the transactions
contemplated herein.

         4.30     REGULATION. Except as set forth on Schedule 4.30, none of the
La Grange Entities is now, or after the consummation of the transactions
contemplated by this Agreement and the Other Transaction Documents and
application of the net proceeds thereof will be, (i) an "investment company" or
a company "controlled by" an "investment company" within the meaning of the
Investment Company Act of 1940, as amended, or (ii) a "holding company" or a
"subsidiary company" of a "holding company" or an "affiliate" thereof, within
the meaning of the Public Utility Holding Company Act of 1935, as amended.

         4.31     NO VIOLATION. None of the La Grange Entities is in (i)
violation of its partnership agreement, certificate or articles of incorporation
or bylaws or other organizational documents, or of any law, statute, ordinance,
administrative or governmental rule or regulation applicable to it or of any
decree of any Governmental Authority having jurisdiction over it or (ii) breach,
default (or an event which, with notice or lapse of time or both, would
constitute such a default) or violation in the performance of any obligation,
agreement or condition contained in any bond, debenture, note or any other
evidence of indebtedness or in any agreement, indenture, lease or other
instrument to which it is a party or by which it or any of its properties may be
bound, which breach, default or violation would, if continued, have a La Grange
Material Adverse Effect. No third party to any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which any of the La
Grange Entities is a party or by which any of them is bound or to which any of
their properties are subject, is in default under any such agreement, which
breach, default or violation would, if continued, have a La Grange Material
Adverse Effect.

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<PAGE>

         4.32     AGREEMENTS OF LA GRANGE AND THE LA GRANGE ENTITIES. Each of
the Partnership Agreements of La Grange and the La Grange Partnerships, and the
limited liability company agreements of each other La Grange Entity that is a
limited liability company have been duly authorized, executed and delivered and
is, and will be, a valid and legally binding agreement of such entity,
enforceable in accordance with its terms, provided, however, that the
enforceability thereof may be limited by bankruptcy, insolvency, fraudulent
transfer, reorganization moratorium and similar laws relating to or affecting
creditors' rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or of law).

                                    ARTICLE 5
                                   AGREEMENTS

         La Grange hereby covenants and agrees with each of the Heritage Parties
to the effect set forth in Sections 5.1 to 5.3, 5.6 and 5.7. The Heritage
Parties hereby covenant and agree with La Grange to the effect set forth in
Sections 5.4, and 5.5, 5.6 and 5.7.

         5.1      CONDUCT AND PRESERVATION OF THE BUSINESS OF THE LA GRANGE
ENTITIES. Except as expressly provided in this Agreement and the Other
Transaction Documents, or except as listed in Schedule 5.1, La Grange shall
cause the La Grange Entities to (a) conduct the La Grange Business substantially
as it is being conducted on the date hereof (provided that this clause (a) shall
not be violated to the extent that the La Grange Entities take any action not
otherwise prohibited by Section 5.2); (b) use its commercially reasonable best
efforts to preserve, maintain and protect the La Grange Business consistent with
available resources; and (c) use its commercially reasonable best efforts to
preserve intact the business organization of the La Grange Entities and the La
Grange Business, consistent with its available resources, to keep available the
services of the La Grange Employees and to maintain existing relationships with
suppliers, contractors, distributors, customers and others having business
relationships with the La Grange Entities or the La Grange Business.

         5.2      RESTRICTIONS ON CERTAIN ACTIONS OF THE LA GRANGE ENTITIES.
Without limiting the generality of Section 5.2, except as listed in Schedule 5.2
and except as otherwise expressly contemplated by this Agreement and the Other
Transaction Documents, from and after the date hereof and until the Closing
Date, without the approval of Heritage MLP, none of the La Grange Entities,
shall, with respect to the La Grange Entities, the La Grange Assets or the La
Grange Business, or shall cause or permit any of the La Grange Entities to:

         (a)      make any expenditures outside the ordinary course of business
consistent with past practice which, individually or in the aggregate, exceed
$1,000,000 other than expenditures (i) made in connection with a La Grange
Permitted Acquisition or (ii) with respect for which La Grange shall be
reimbursed under Section 2.4.

         (b)      make any material change in the ongoing operations of the La
Grange Business except to the extent resulting from any La Grange Permitted
Acquisition;

         (c)      create, incur, guarantee or assume any indebtedness for
borrowed money outside the ordinary course of business;

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<PAGE>

         (d)      mortgage or pledge any of the La Grange Assets or La Grange
Interests or create or suffer to exist any Encumbrance thereupon, other than
Permitted Encumbrances;

         (e)      sell, lease, transfer or otherwise dispose of, directly or
indirectly, any of the La Grange Assets, except in the ordinary course of
business consistent with past practice, or sell, lease, transfer, or otherwise
dispose of any fixed assets, whether or not in the ordinary course of business,
which have a value, individually, in excess of $100,000, or in the aggregate, in
excess of $1,000,000;

         (f)      amend, modify or change any existing lease or Contract
relating to the La Grange Assets, other than in the ordinary course of the
business consistent with past practice;

         (g)      waive, release, grant or transfer any rights of value relating
to the La Grange Assets, La Grange Interests or La Grange Business, other than
in the ordinary course of the business consistent with past practice;

         (h)      except in the ordinary course of business, hire any new
employees or recall any laid-off employees;

         (i)      delay payment of any account payable or other liability
relating to the La Grange Business beyond the later of its due date or the date
when such liability would have been paid in the ordinary course of business
consistent with past practice, unless such delay is due to a good faith dispute
as to liability or amount;

         (j)      permit any current insurance or reinsurance or continuation
coverage to lapse if such policy insures risks, contingencies or liabilities
(including product liability) related to the La Grange Business;

         (k)      except as set forth in this Section 5.2, take any action which
would make any of the representations or warranties of La Grange untrue as of
any time from the date of this Agreement to the date of the Closing, or would
result in any of the conditions set forth in this Agreement not being satisfied;

         (l)      agree in writing or otherwise take, any of the actions
described in this Section 5.2;

         (m)      merge into or with or consolidate with any other corporation
or acquire all or substantially all of the business or assets of any corporation
or other Person, other than with a La Grange Entity or in connection with any La
Grange Permitted Acquisition;

         (n)      take any action or enter into any commitment with respect to
or in contemplation of any liquidation, dissolution, recapitalization,
reorganization, or other winding up of the Business;

         (o)      create any employee benefit plans (within the meaning of
Section 3(3) of ERISA) or any other employee benefit plan or program not subject
to ERISA, except as required by law;

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<PAGE>

         (p)      enter into or take any action in connection with hedges,
trades or swaps of any commodity or financial instrument, except to the extent
consistent with the provisions of the Energy Transfer Risk Management Policy;

         (q)      declare, set aside or pay any dividend or make any other
distribution to their partners, owners or members whether or not upon or in
respect of any La Grange Interest except as expressly authorized by this
Agreement; or

         (r)      redeem or otherwise acquire any La Grange Interest or issue
any La Grange Interest or any option, warrant or right relating thereto or any
securities convertible into or exchangeable for any La Grange Interest, or
otherwise authorize for issuance, issue, sell, deliver or agree or commit to
issue, sell or deliver (whether through the issuance or granting of options,
warrants, commitments, subscriptions, rights to purchase or otherwise) any La
Grange Interest or any other securities or equity equivalents or amend any of
the terms of any such securities or agreements.

         5.3      SERVICES OF LA GRANGE EMPLOYEES. Between the date hereof and
the Closing, La Grange shall use its commercially reasonable best efforts to
keep available the services of the La Grange Employees, and shall not, except in
accordance with past practice and existing business policy, terminate any such
La Grange Employees.

         5.4      CONDUCT AND PRESERVATION OF THE HERITAGE BUSINESS. Except as
expressly provided in this Agreement and the Other Transaction Documents or
except as listed in Schedule 5.4, the Heritage Parties shall cause the Heritage
Entities to (a) conduct the Heritage Business substantially as it is being
conducted on the date hereof (provided that this clause (a) shall not be
violated to the extent that the Heritage Entities take any action not otherwise
prohibited by Section 5.5); (b) use their commercially reasonable best efforts
to preserve, maintain and protect the assets of the Heritage Entities and
Heritage Business consistent with available resources; and (c) use their
commercially reasonable best efforts to cause the Heritage Entities to preserve
intact the business organization of the Heritage Entities and the Heritage
Business, consistent with its available resources, to keep available the
services of the Heritage Employees and to maintain existing relationships with
suppliers, contractors, distributors, customers and others having business
relationships with the Heritage Entities or the Heritage Business.

         5.5      RESTRICTIONS ON CERTAIN ACTIONS OF THE HERITAGE PARTIES AND
HERITAGE GP. Without limiting the generality of Section 5.4, except as listed in
Schedule 5.5 and except as otherwise expressly contemplated by this Agreement
and the Other Transaction Documents, from and after the date hereof and until
the Closing Date, without the approval of La Grange:

         (a)      Except as set forth on Schedule 5.5, neither of the Heritage
Parties nor Heritage GP shall agree to sell, transfer or otherwise dispose, or
grant or agree to grant an option to purchase, sell, transfer, or otherwise
dispose of any securities of any of the Heritage Entities other than in
connection with (i) any Heritage Plan, (ii) any employee benefit plan or other
employee arrangement adopted by any of the Heritage Entities prior to the date
of this Agreement; (iii) any Heritage Permitted Acquisition, (iv) the issuance
of Common Units as

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contemplated by this Agreement; and (v) the issuance and/or sale of Common Units
under an effective registration statement.

         (b)      Except as set forth on Schedule 5.5, neither the Heritage
Parties nor Heritage GP shall, or shall cause or permit any of the Heritage
Entities to:

                  (i)      make any expenditures outside the ordinary course of
         business consistent with past practice which, individually or in the
         aggregate, exceed $1,000,000 other than (A) expenditures contemplated
         by the annual budget adopted by the Heritage Entities for the year
         ending August 31, 2002 or, if applicable, August 31, 2003, and (B)
         expenditures made in connection with any Heritage Permitted
         Acquisition;

                  (ii)     make any material change in the ongoing operations of
         the Heritage Business except to the extent resulting from any Heritage
         Permitted Acquisition;

                  (iii)    create, incur, guarantee or assume any indebtedness
         for borrowed money outside the ordinary course of business other than
         indebtedness permitted under credit facilities of the Heritage Entities
         and indebtedness incurred under any new credit facilities entered into
         by the Heritage Entities to finance the cash portion of the Purchase
         Price;

                  (iv)     mortgage or pledge any of the securities or assets of
         any of the Heritage Entities or create or suffer to exist any
         Encumbrance thereupon, other than (A) Permitted Encumbrances, (B)
         Encumbrances created pursuant to loan documentation permitted under the
         existing credit facilities of the Heritage Entities and (C)
         Encumbrances created pursuant to loan documentation relating to any new
         credit facilities entered into by the Heritage Parties to finance the
         cash portion of the Purchase Price;

                  (v)      sell, lease, transfer or otherwise dispose of,
         directly or indirectly, any assets, except in the ordinary course of
         business consistent with past practice, or sell, lease, transfer, or
         otherwise dispose of any fixed assets which have a value, individually,
         in excess of $50,000 or, in the aggregate, in excess of $1,000,000;
         provided however, that any of the Heritage Entities may sell excess
         real property listed on Heritage's surplus property list or real
         property that does not generate EBITDA;

                  (vi)     amend, modify or change any existing lease or
         contract, other than in the ordinary course of the business consistent
         with past practice;

                  (vii)    waive, release, grant or transfer any rights of value
         relating to the Heritage Assets or the Heritage Business, other than in
         the ordinary course of business consistent with past practice;

                  (viii)   hire or promote from within any executive employees
         or, except in the ordinary course of business, hire any new employees
         or recall any laid off employees;

                  (ix)     delay payment of any account payable or other
         liability relating to the Heritage Business beyond the later of its due
         date or the date when such liability would

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<PAGE>

         have been paid in the ordinary course of business consistent with past
         practice, unless such delay is due to a good faith dispute as to
         liability or amount;

                  (x)      permit any current insurance or reinsurance or
         continuation coverage to lapse if such policy insures risks,
         contingencies or liabilities (including product liability) related to
         the Heritage Business other than in connection with any advance renewal
         or replacement of an existing insurance policy;

                  (xi)     except as set forth in this Section 5.5, take any
         action which would make any of the representations or warranties of any
         of the Heritage Parties untrue as of any time from the date of this
         Agreement to the date of the Closing, or would result in any of the
         conditions set forth in this Agreement not being satisfied;

                  (xii)    agree in writing or otherwise take any of the actions
         described in this Section 5.5.

                  (xiii)   merge into or with or consolidate with any other
         corporation or acquire all or substantially all of the business or
         assets of any corporation or other Person other than in connection with
         any Heritage Permitted Acquisition;

                  (xiv)    purchase any securities of any corporation or other
         Person other than in connection with any Heritage Permitted
         Acquisition;

                  (xv)     take any action or enter into any commitment with
         respect to or in contemplation of any liquidation, dissolution,
         recapitalization, reorganization, or other winding up of the Business;

                  (xvi)    declare any distribution or dividend of cash,
         property or securities, other than (A) regular quarterly cash
         distributions by Heritage MLP of Available Cash at a rate that is not
         in excess of $0.65 per Common Unit (with a proportionate distribution
         to Heritage GP in respect of its general partner interests in Heritage
         MLP and Heritage OLP) and (B) distributions in respect of the Incentive
         Distribution Rights; or

                  (xvii)   enter into or take any action in connection with
         hedges, trades or swaps of any commodity, except in accordance with the
         Heritage Hedging Policy.

         5.6      CONSENT TO ELECTIONS. The Parties hereto agree and acknowledge
that each of the La Grange Entities entitled to make an election under Section
754 of the Code shall make such election, and each Party shall take such steps
as are necessary or required to make such election by each of the La Grange
Entities. The Parties also agree that the Heritage MLP (and its subsidiary
entities) will elect to use the remedial method under Treasury Reg. Section
1.704-3(d) with respect to all assets contributed to the Heritage MLP by La
Grange, including any goodwill.

         5.7      TAX REPORTING. The Parties hereto agree, to the extent
allowable, to report the contribution to Heritage MLP by La Grange of the La
Grange Interests as a non-taxable contribution under Section 721 of the Code.

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<PAGE>

                                    ARTICLE 6
                              ADDITIONAL AGREEMENTS

         The Parties hereby covenant and agree as follows:

         6.1      ACCESS TO INFORMATION, CONFIDENTIALITY.

         (a)      Between the date hereof and the Closing, La Grange shall cause
the La Grange Entities to (i) give each of the Heritage Parties and their
respective authorized representatives reasonable access to all La Grange
Employees and all facilities and all books and records relating to the La Grange
Entities, (ii) permit each of the Heritage Parties and their respective
authorized representatives to make such inspections of the La Grange Assets as
they may reasonably require to verify the accuracy of any representation or
warranty contained in Article 4 and (iii) shall furnish each of the Heritage
Parties and their respective authorized representatives with such financial and
operating data and other information with respect to the La Grange Entities as
any such Party may from time to time reasonably request; provided, however, that
La Grange shall have the right to have a representative present at all times of
any such inspections or examinations conducted at the offices or other
facilities of the La Grange Entities.

         (b)      Between the date hereof and the Closing, the Heritage Parties
shall (i) give La Grange and its respective authorized representatives
reasonable access to all Heritage Employees and all facilities and all books and
records relating to the Heritage Entities, (ii) permit La Grange and its
respective authorized representatives to make such inspections of the Heritage
Assets as they may reasonably require to verify the accuracy of any
representation or warranty contained in Article 3 and (iii) shall furnish La
Grange and its respective authorized representatives with such financial and
operating data and other information with respect to the Heritage Entities as La
Grange may from time to time reasonably request; provided, however, that the
Heritage Parties shall have the right to have a representative present at all
times of any such inspections or examinations conducted at the offices or other
facilities of the Heritage Entities.

         6.2      AUTHORIZATIONS AND CONSENTS.

         (a)      Each Party hereto shall take all commercially reasonable steps
necessary or desirable, and proceed diligently and in good faith and shall use
all commercially reasonable best efforts to obtain, as promptly as practicable,
(i) all authorizations, consents, orders and approvals of all Governmental
Authorities that may be or become necessary for such party's execution and
delivery of, and the performance of its obligations pursuant to, this Agreement
and the Other Transaction Documents, and (ii) all approvals and consents
(including those approvals, consents and authorizations specified in Schedule
3.25 (with respect to the Heritage Parties) and Schedule 4.25) (with respect to
La Grange) required under all Contracts to which the La Grange Entities or the
Heritage Entities is a party to consummate the transactions contemplated hereby.
Each Party will cooperate fully (including by providing all information the
other Party reasonably requests) with the other Parties in promptly seeking to
obtain all such authorizations, consents, orders and approvals. Each Party
hereto agrees to make an appropriate filing of a Notification and Report Form
pursuant to the HSR Act with respect to the transactions contemplated hereby as
soon as reasonably practicable after the date hereof, but in no event later than
five (5) business days following the execution of this Agreement, use their
commercially reasonable efforts to cause the

                                       45

<PAGE>

waiting period under the HSR Act to expire as quickly as possible and to supply
promptly any additional information and documentary material that may be
requested pursuant to the HSR Act. Notwithstanding the foregoing, no Party shall
have any obligation to dispose of, hold separate or otherwise restrict its
enjoyment of any of their assets or properties.

         (b)      Each Party hereto shall promptly inform the other Parties of
any communication from any Governmental Authority regarding any of the
transactions contemplated by this Agreement. If any Party or Affiliate thereof
receives a request for additional information or documentary material from any
such Governmental Authority with respect to the transactions contemplated
hereby, then such Party will endeavor in good faith to make, or cause to be
made, as soon as reasonably practicable and after consultation with the other
party, an appropriate response in compliance with such request.

         6.3      PUBLIC ANNOUNCEMENTS. The Heritage Parties and La Grange will
consult with each other before issuing, and provide each other the opportunity
to review and comment upon, any press release or other public statement with
respect to the transactions contemplated by this Agreement and the Other
Transaction Documents, and none of the Parties to this Agreement shall, and La
Grange shall cause the La Grange Entities not to, issue any such press release
or make any such public statement, in the case of any press release or public
statement by any of the Heritage Parties, without the advance approval of La
Grange following such consultation (such approval not to be unreasonably
withheld or delayed) and, in the case of La Grange or the La Grange Entities,
without the advance approval of Heritage MLP following such consultation (such
approval not to be unreasonably withheld or delayed), except as may be required
by Applicable Law, court process or by the requirements of any securities
exchange.

         6.4      ACCESS TO RECORDS AFTER CLOSING. For a period of six years
from and after the Closing Date, La Grange and its Affiliates and
representatives shall have reasonable access to inspect and copy all books and
records relating to the La Grange Entities to the extent that such access may
reasonably be required in connection with matters relating to or affected by the
operation of the La Grange Business prior to the Closing Date. The Heritage
Parties shall afford such access upon receipt of reasonable advance notice and
during normal business hours. If the Heritage Parties desire to dispose of any
of such books and records prior to the expiration of such period, the Heritage
Parties shall, prior to such disposition, give La Grange and its representatives
a reasonable opportunity, at their expense, to segregate and remove such books
and records as they may select. La Grange shall be solely responsible for any
costs or expenses incurred by it pursuant to this Section 6.4.

         6.5      FEES AND EXPENSES. Except as otherwise expressly provided in
this Agreement, La Grange shall pay the fees and expenses of La Grange and the
La Grange Entities, and the Heritage Parties shall pay the fees and expenses of
the Heritage Entities, incurred in connection with the negotiation, execution
and delivery of this Agreement and the transactions contemplated hereby, whether
or not the Closing shall have occurred.

         6.6      TAXES; OTHER CHARGES. All sales, use, registration, stamp,
property transfer, transfer and similar Taxes incurred in connection with the
consummation of the transactions contemplated by this Agreement shall be borne
by the person upon whom such Tax is imposed

                                       46

<PAGE>

by Applicable Law. Each Party agrees to cooperate in the filing of all necessary
documentation and returns with respect to all such Taxes.

         6.7      EMPLOYMENT MATTERS.

         (a)      Heritage Plans. The Heritage Parties shall include the La
Grange Entities as "participating Employers" in the Heritage Plans described in
Schedule 3.28(a)(i), and all La Grange Employees shall be eligible to
participate in the Heritage Plans or similar plans as of the Closing Date,
pursuant to the terms of those plans, and (i) with respect to each "welfare
plan," as defined in Section 3(1) of ERISA, any waiting period for eligibility
shall be waived for each La Grange Employee provided such La Grange Employee was
covered under a similar La Grange Plan on the Closing Date; and (ii) with
respect to each "pension plan," as defined in Section 3(2)(A) of ERISA, and to
the extent allowed by law, La Grange Employees shall receive credit for prior
service with the La Grange Entities for purposes of eligibility and vesting, and
the plan shall accept eligible rollover distributions and loans pursuant to the
terms of the plan from any La Grange "pension plan."

         (b)      La Grange Plans. All La Grange Plans described in Schedule
4.28(a)(i) shall be terminated preceding the Closing Date, and (i) with respect
to each "group health care plan," which must comply with Section 4980B of the
code and Sections 601 through 608 of ERISA, the Heritage Plans, as applicable,
shall make COBRA continuation coverage available to qualified beneficiaries
whose qualifying event occurred before the Closing Date; and (ii) with respect
to each "employee pension benefit plan," all contributions (including the La
Grange Entities' contributions and Employee salary redirection contributions)
shall have been paid or accrued for any period ending on or before the Closing
Date, resolutions shall have been adopted before the Closing Date, terminating
each "employee pension benefit plan" with a termination date which precedes the
Closing Date, all La Grange Employees shall have been 100% vested, and the
distribution process, with regard to such La Grange Employees, shall begin
pursuant to the terms of such plan.

         (c)      Other Employment Matters. Except for accrued vacation time, no
other La Grange Employee-related liability or La Grange Plan liability,
including, without limitation, any liability under COBRA (except as set forth in
subsection (b) above), ERISA, or the Code is being assumed by the Heritage
Parties.

         6.8      AMENDMENT OF SCHEDULES. The Heritage Parties and La Grange
will, promptly upon becoming aware of any fact, matter, circumstance or event,
which fact, matter, circumstance or event arose either (i) on or prior to the
date hereof (a "Pre-Signing Event") or (ii) after the date hereof but prior to
the Closing (a "Post-Signing Event"), in any case, requiring supplementation or
amendment of the schedules provided by the Heritage Parties or La Grange
attached hereto, supplement or amend such schedules to this Agreement to reflect
any fact, matter, circumstance or event, which, if existing, occurring or known
on the date of this Agreement, would have been required to be set forth or
described in such schedules which were or have been rendered inaccurate thereby.
All supplements and amendments to the schedules provided by Heritage Parties or
La Grange are provided for the information of the Parties only and no such
supplement or amendment to the schedules shall (i) amend or supplement the
representations and warranties (and corresponding schedules) made as of the date
hereof or (ii)

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<PAGE>

have any effect for the purpose of determining (A) satisfaction of the
conditions set forth in Article 6.8 hereof or (B) compliance by the Heritage
Parties and La Grange with their respective covenants and agreements set forth
herein.

         6.9      ACTIONS BY PARTIES. Each Party agrees to use commercially
reasonable best efforts to satisfy the conditions to Closing set forth in
Article 7 and to use its commercially reasonable best efforts to refrain from
taking any action within its control that would cause a breach of a
representation, warranty, covenant or agreement set forth in this Agreement.

         6.10     VOTE OF COMMON UNITS. Heritage GP shall use Commercially
Reasonable Best Efforts to cause its officers and directors to vote all of their
respective Common Units at each meeting or other vote of holders of the Common
Units of Heritage MLP, with respect thereto, for approval of the conversion of
the Class D Units.

         6.11     LISTING. Heritage MLP shall use Commercially Reasonable Best
Efforts to list the Common Units to be issued to La Grange pursuant to this
Agreement on the New York Stock Exchange, prior to the Closing Date, subject to
official notice of issuance.

         6.12     FINANCIAL STATEMENTS. La Grange will provide to Heritage MLP
an unaudited balance sheet dated as of September 30, 2003 of ETC OLP and its
subsidiaries within five days of the receipt of such unaudited balance sheet and
no later than the Closing. La Grange shall provide such other audited and
unaudited financial statements as may be required to be filed by Heritage MLP in
accordance with the Exchange Act and the Securities Act, and at such times as
may be required by Heritage MLP in order to make timely filings in compliance
thereunder.

         6.13     ADDITIONAL COOPERATION. The Parties agree to cooperate and
assist in the filing of proxy solicitation materials relating to matters
contemplated hereby requiring a vote of the holders of the outstanding Common
Units of Heritage MLP.

         6.14     CONFIDENTIALITY AND TAX SHELTER REGULATIONS. Except as
reasonably necessary to comply with applicable securities laws and
notwithstanding anything in this Agreement to the contrary (including the
confidentiality provisions set forth in Section 6.1) or in any other agreement
to which a Party hereto is bound, the Parties hereto (and each employee,
representative, or other agent of any of the Parties) are expressly authorized
to disclose to any and all persons, without limitation of any kind, the U.S.
federal income "tax treatment" and "tax structure" (as those terms are defined
in Treas. Reg. Sections 1.6011-4(c)(8) and (9), respectively) of the
transactions contemplated by this Agreement and all materials of any kind
(including opinions or other tax analyses) that are provided to such parties
relating to such "tax treatment" and "tax structure" of the transactions
contemplated by this Agreement. For these purposes, "tax structure" is limited
to facts relevant to the U.S. federal income tax treatment of the transaction
described herein.

         6.15     PERMITTED ACTIONS. Notwithstanding the provisions of Section
5.5 above, the Heritage Parties and the Heritage GP (but only with respect to
the Heritage Parties) shall be entitled to take any action otherwise prohibited
by Section 5.5 in response to any third party inquiry, contact or proposal
received by them if (a) the Special Committee shall have determined, in its good
faith judgment, that any such otherwise prohibited action may lead to the

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<PAGE>

negotiation and consummation of a sale or other transaction involving the
assets, business or securities of the Heritage Parties or any other transaction
similar to the transactions contemplated by this Agreement (collectively, a
"Possible Alternative") that in the opinion of the Special Committee may be more
beneficial than the transactions contemplated by this Agreement, taken as a
whole, to the holders of the Common Units (a "Superior Transaction") and (b) the
Special Committee shall have determined, after consultation with and based on
the advice of its legal counsel, that the failure to take such action would be
inconsistent with the Heritage GP's Board of Directors' fiduciary duties to
holders of the Common Units under applicable law; provided, that none of the
Heritage GP (but only with respect to the Heritage Parties) or the Heritage
Parties may execute a binding agreement to effect a Superior Transaction unless
this Agreement has first been terminated as provided in Section 8.1. The
Heritage GP (but only with respect to the Heritage Parties) and the Heritage
Parties agree that each of them will notify La Grange immediately if any
inquiry, contact or proposal is received by, any such information is requested
from, or any such discussions or negotiations are sought to be initiated or
continued with, any of their representatives, and thereafter shall keep La
Grange informed, on a current basis, on the status of any such inquiry, contact
or proposal and the status of any such negotiations or discussions.

                                    ARTICLE 7
                    CONDITIONS TO OBLIGATIONS OF THE PARTIES

         7.1      CONDITIONS TO CLOSING OF LA GRANGE.

The obligations of La Grange to consummate the transactions contemplated by this
Agreement at the Closing shall be subject to the fulfillment by each of the
Heritage Parties on or prior to the Closing Date of each of the following
conditions:

         (a)      Representations and Warranties True. All the representations
and warranties of the Heritage Parties contained in this Agreement, and in any
agreement, instrument or document delivered by any of the Heritage Parties
pursuant to this Agreement on or prior to the Closing Date shall be true and
correct, individually and in the aggregate, in all material respects (other than
any representation or warranty that is qualified by materiality or a Heritage
Material Adverse Effect, which shall be true and correct in all respects) as of
the date of this Agreement and as of the Closing Date.

         (b)      Covenants and Agreements Performed. Each of the Heritage
Parties shall have performed and complied with, in all material respects, all
covenants and agreements required by this Agreement to be performed or complied
with by it, including, but not limited to, the consummation of the transactions
required to be completed pursuant to Section 2.2.

         (c)      Certificates. La Grange shall have received a certificate from
each of the Heritage Parties, in substantially the form set forth in Exhibit
7.1(c), dated the Closing Date, representing and certifying that the conditions
set forth in Sections 7.1(a) and 7.1(b) have been fulfilled and a certificate as
to the incumbency of the officers executing this Agreement on behalf of the
Heritage Parties.

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<PAGE>

         (d)      Legal Proceedings. No preliminary or permanent injunction or
other order, decree or ruling issued by a Governmental Authority, and no
statute, rule, regulation or executive order promulgated or enacted by a
Governmental Authority, shall be in effect that restrains, enjoins, prohibits or
otherwise makes illegal the consummation of the transactions contemplated
hereby. No Proceeding before a Governmental Authority shall be pending (A)
seeking to restrain or prohibit the consummation of the transactions
contemplated hereby or (B) that could reasonably be expected, if adversely
determined, to impose any material limitation on the ability of La Grange to
convey the La Grange Assets or to receive full payment therefore.

         (e)      Consents. All Consents set forth on Schedule 7.1(e) shall have
been obtained or made and shall be in full force and effect as to the Heritage
Parties at the time of the Closing, and with respect to any such Consent related
to any amendment of any credit agreement or similar document, such Consent shall
have been given (and any such amendment shall have been made) on terms that are
reasonably acceptable to La Grange, which acceptance shall not be unreasonably
withheld, conditioned or delayed.

         (f)      No Heritage Material Adverse Effect. Since the date of this
Agreement, there shall not have been any event or condition having a Heritage
Material Adverse Effect.

         (g)      Deliveries. The Heritage Parties shall have delivered the
Equity Consideration and shall have delivered to an account designated by La
Grange the Cash Consideration and the Capital Expenditures Payment.

         (h)      Acquisition Agreement; HHI Purchase Agreement. The Acquisition
Agreement and the HHI Purchase Agreement shall have been executed and delivered
by the parties thereto and all conditions to closing therein (other than the
closing of the transactions pursuant to this Agreement) shall have been
satisfied or waived.

         (i)      HSR Waiting Period. If applicable, the waiting period under
the HSR Act applicable to the consummation of the transactions contemplated
hereby shall have expired or been terminated without any adverse condition
attached thereto.

         (j)      Amendment to Heritage MLP Partnership Agreement. Amendment No.
5 to the MLP Partnership Agreement and Amendment No. 3 to the OLP Partnership
Agreement shall have been duly executed and adopted and shall be in full force
and effect.

         (k)      Listing. The Common Units issuable to La Grange pursuant to
this Agreement shall have been approved for listing on the New York Stock
Exchange subject to official notice of issuance.

         (l)      Legal Opinion. La Grange shall have received the written
opinion from Doerner, Saunders, Daniel & Anderson, L.L.P. in a reasonable and
customary form to be agreed to by the Parties.

         (m)      Equity Financing. Heritage MLP shall have completed, or shall
complete contemporaneously with the Closing, a public offering of Common Units
with minimum net proceeds to Heritage MLP of $250 million, on terms and
conditions mutually agreeable to Heritage MLP and La Grange (the "Equity
Financing").

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<PAGE>

         (n)      Debt Financing. Heritage MLP shall have completed, or shall
complete contemporaneously with the Closing, a public debt offering or private
debt placement with minimum net proceeds to Heritage OLP of $300 million, on
terms and conditions mutually agreeable to the Heritage Parties and La Grange
(the "Debt Financing").

         (o)      Waiver of Prepayment Premiums. The Heritage Parties shall have
obtained waivers or amendments under their existing debt facilities which would
serve to avoid the triggering of any debt prepayment premiums for which the
Heritage Parties may be obligated to pay as a result of the transactions
contemplated by this Agreement or the Acquisition Agreement, on terms and
conditions mutually agreeable to the Heritage Parties and La Grange (the
"Prepayment Waivers").

         7.2      CONDITIONS TO CLOSING OF THE HERITAGE PARTIES.

The obligations of each of the Heritage Parties to consummate the transactions
contemplated by this Agreement at the Closing shall be subject to the
fulfillment by La Grange on or prior to the Closing Date of each of the
following conditions:

         (a)      Representations and Warranties True. All the representations
and warranties of La Grange contained in this Agreement, and in any agreement,
instrument or document delivered by La Grange pursuant to this Agreement on or
prior to the Closing Date shall be true and correct, individually and in the
aggregate, in all material respects (other than any representation or warranty
that is qualified by materiality or a La Grange Material Adverse Effect, which
shall be true and correct in all respects) as of the date of this Agreement and
as of the Closing Date.

         (b)      Covenants and Agreements Performed. La Grange shall have
performed and complied with, in all material respects, all covenants and
agreements required by this Agreement to be performed or complied with by them,
including, but not limited to, the consummation of the transactions required to
be completed pursuant to Section 2.2(b). In addition, La Grange shall have
performed and complied with all the covenants set forth in Sections 6.12 and
6.13.

         (c)      Certificates. The Heritage Parties shall have received a
certificate from La Grange, in substantially the form set forth in Exhibit
7.2(c), executed by La Grange, dated the Closing Date, representing and
certifying that the conditions set forth in Sections 7.2(a) and 7.2(b) have been
fulfilled and a certificate as to the incumbency of any officer executing this
Agreement on behalf of La Grange.

         (d)      Legal Proceedings. No preliminary or permanent injunction or
other order, decree or ruling issued by a Governmental Authority, and no
statute, rule, regulation or executive order promulgated or enacted by a
Governmental Authority, shall be in effect (i) that restrains, enjoins,
prohibits or otherwise makes illegal the consummation of the transactions
contemplated hereby or (ii) that would impose any material limitation on the
ability of Heritage MLP effectively to exercise full rights of ownership of the
La Grange Interests and La Grange Assets to be acquired by Heritage MLP under
this Agreement. No Proceeding before a Governmental Authority shall be pending
(A) seeking to restrain or prohibit the consummation of the transactions
contemplated hereby or (B) that could reasonably be expected, if adversely

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<PAGE>

determined, to impose any material limitation on the ability of Heritage MLP
effectively to exercise full rights of ownership of the La Grange Interests and
La Grange Assets to be acquired by Heritage MLP under this Agreement.

         (e)      Consents. All Consents set forth on Schedule 7.2(e) shall have
been obtained or made and shall be in full force and effect as to La Grange or
the La Grange Entities at the time of the Closing.

         (f)      No La Grange Material Adverse Effect. Since the date of this
Agreement, there shall not have been any event or condition having a La Grange
Material Adverse Effect.

         (g)      Deliveries. La Grange shall have delivered the certificates
representing all of the outstanding La Grange Shares, duly endorsed in blank or
accompanied by transfer powers[, or if any of such La Grange Interests are
uncertificated, such other assigment and conveyance documents as are reasonably
acceptable to the Parties].

         (h)      Acquisition Agreement; HHI Purchase Agreement. The Acquisition
Agreement and the HHI Purchase Agreement shall have been executed and delivered
by the parties thereto and all conditions to closing therein (other than the
closing of the transactions pursuant to this Agreement) shall have been
satisfied or waived.

         (i)      HSR Waiting Period. If applicable, the waiting period under
the HSR Act applicable to the consummation of the transactions contemplated
hereby shall have expired or been terminated without any adverse condition
attached thereto.

         (j)      Application for Issuance - Common Units. At the Closing, La
Grange will deliver the Application for Issuance of Common Units, substantially
in the form attached as Exhibit 7.2(j).

         (k)      Legal Opinion. The Heritage Entities shall have received the
written opinion from Thompson & Knight, L.L.P. and such other written opinions
of counsel as may be required, each such opinion to be in a reasonable and
customary form to be agreed to by the Parties.

         (l)      Administrative Management Contract. The General and
Administrative Services, Reimbursement and Indemnification Agreement among La
Grange and ET GP, LLC shall have been terminated or amended to provide that any
fees payable under said agreement are not payable or reimbursable by Heritage
MLP.

         (m)      Voting and Transfer Rights Agreement. The Voting and Transfer
Rights Agreement dated as of October 1, 2002, among La Grange and the
Co-Investors named therein shall have been terminated or amended to provide that
Section 7 thereof shall not be applicable to the subsidiaries of La Grange that
become subsidiaries of Heritage MLP in connection with the transactions
contemplated by this Agreement.

         (n)      Non-Compete Agreement. The Non-Compete Agreement, in
substantially the form attached as Exhibit 1.1, shall have been executed by the
Restricted Parties, as defined therein.

                                       52

<PAGE>

                                    ARTICLE 8
                        TERMINATION, AMENDMENT AND WAIVER

         8.1      TERMINATION.

         This Agreement may be terminated and the transactions contemplated
hereby abandoned by written notice at any time prior to the Closing in any of
the following manners:

         (a)      by any Party concurrently with any permitted termination of
the Acquisition Agreement;

         (b)      by written consent of each of the Parties;

         (c)      by any Party if the Closing has not occurred on or before
February 15, 2004, unless such failure to close resulted from a breach of this
Agreement by the Party or its Affiliate seeking to terminate this Agreement
pursuant to this Section 8.1(c);

         (d)      by any Party if (i) there is any statute, rule or regulation
that makes consummation of the transactions contemplated hereby or the operation
of the La Grange Business or Heritage Business illegal or otherwise prohibited
or (ii) a Governmental Authority (A) has issued an order, decree or ruling or
taken any other action restraining, enjoining or otherwise prohibiting the
consummation of the transactions contemplated hereby, and such order, decree,
ruling or other action shall have become final and nonappealable or (B) has made
any order, decree, ruling or other action consenting to or approving
consummation of the transactions contemplated hereby contingent or conditional
in any manner that has a Heritage Material Adverse Effect or a La Grange
Material Adverse Effect;

         (e)      by any Party, if there has been any violation or breach by any
other Party (other than an Affiliate or related party of the first party) of any
representation, warranty, covenant or agreement contained in this Agreement that
has rendered impossible the satisfaction of any condition to the obligations of
such other Party set forth in Section 7.1 or Section 7.2 and such violation or
breach has neither been cured within 30 days after notice by such first Party to
the other Party nor waived by the first Party;

         (f)      by any Party, if any other event shall occur that shall render
the satisfaction of any such condition to the obligations of any other Party
(other than an Affiliate or related party of the first party) impossible and
such condition has not been waived by the other Parties;

         (g)      by La Grange, if any material amendment is made by the
Heritage Parties in accordance with Section 6.8;

         (h)      by the Heritage Parties, if any material amendment is made by
La Grange in accordance with Section 6.8;

         (i)      by La Grange, if the Average Market Value is less than $29.50,
or by Heritage MLP, if the Average Market Value is greater than $38.50;

                                       53

<PAGE>

         (j)      by La Grange, if the general partner of La Grange reasonably
determines at any time after January 10, 2004 that it is not possible for the
Heritage Parties to fulfill any of the conditions described in Sections 7.1(m),
7.1(n) or 7.1(o) on or before the Closing Date on terms and conditions
reasonably acceptable to La Grange; and

         (k)      by the Heritage Parties acting through the Special Committee,
if the Special Committee determines that a possible alternative would constitute
a Superior Transaction.

         8.2      EFFECT OF TERMINATION. In the event of the termination of this
Agreement pursuant to Section 8.1 by any Party, written notice thereof shall
forthwith be given to the other Parties specifying the provision hereof pursuant
to which such termination is made. Except as provided in Section 8.5 of this
Agreement, in the event of termination of this Agreement for any reason, this
Agreement and the Acquisition Agreement shall become void and have no effect,
except that the agreements contained in this Section 8.2 and Section 8.5 and in
Section 6.5 and Article 10 shall survive the termination hereof. Nothing
contained in this Section 8.2 shall relieve any Party from liability for any
willful breach of this Agreement. In the event of termination, each of the
Parties shall be responsible for its own expenses and costs.

         8.3      AMENDMENT. This Agreement may not be amended except by an
instrument in writing signed by each of the Parties.

         8.4      WAIVER. Any Party may, on behalf of itself only and not on
behalf of any other Party, (a) waive any inaccuracies in the representations and
warranties of any other Party (other than an Affiliate or related party of the
first party) contained herein or in any document, certificate or writing
delivered pursuant hereto, (b) waive compliance by any other Party (other than
an Affiliate or related party of the first party) with any of its agreements
contained herein and (c) waive fulfillment of any conditions to its obligations
contained herein. Any agreement on the part of a Party to any such waiver shall
be valid only if set forth in an instrument in writing signed by or on behalf of
such Party. No failure or delay by a Party in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.

         8.5      PAYMENT UPON CERTAIN TERMINATION. If this Agreement is
terminated by the Heritage Parties pursuant to Section 8.1(k), Heritage MLP
shall pay to La Grange a termination fee of $30 million in cash (the
"Termination Fee"), within one (1) business day after such termination. If
Heritage MLP fails to promptly pay to La Grange the Termination Fee, Heritage
MLP shall pay the costs and expenses (including reasonably documented legal fees
and expenses) in connection with any action, including the filing of any lawsuit
or other legal action, taken to collect payment, together with interest on the
amount of any unpaid fee at the publicly announced prime rate of Bank of
Oklahoma, National Association from the date such fee was required to be paid.
Any payment required to be made pursuant to this Section 8.5 shall be made by
wire transfer of immediately available funds to an account designated by La
Grange in writing to Heritage MLP.

                                       54

<PAGE>

                                    ARTICLE 9
                           SURVIVAL OF REPRESENTATIONS

         9.1      INDEMNIFICATION OBLIGATIONS OF LA GRANGE.

         (a)      La Grange shall indemnify each of the Heritage Parties and any
of their owners, partners, officers, agents and their respective Affiliates and
controlling Persons (the "Heritage Indemnified Parties"), as the case may be,
and hold such Persons harmless against and in respect of, any and all Losses
arising out of, based upon or resulting from:

                  (i)      the breach of any representation or warranty of La
         Grange contained in or made pursuant to this Agreement (other than
         breaches and warranties set forth in Section 4.2, Section 4.3, Section
         4.7, Section 4.19, and Section 4.23);

                  (ii)     the breach of any representation or warranty of La
         Grange contained in or made pursuant to Section 4.19 [Environmental
         Matters], and Section 4.23 [Investment Intent];

                  (iii)    the breach of any representation or warranty of La
         Grange contained in or made pursuant to Section 4.2 [Capitalization of
         the La Grange Entities], Section 4.3 [Authority and Binding Agreement],
         and Section 4.7 [Title to La Grange Assets],; and

                  (iv)     the breach by La Grange or the failure by La Grange
         to observe or perform in any material respect, any of their covenants
         or agreements contained in Section 5.6, Section 5.7, Section 6.4,
         Section 6.5, Section 6.6, Section 6,10, Section 6.12, Section 6.13,
         Section 6.14 or Article 10 of this Agreement.

         (b)      Notwithstanding the foregoing, La Grange will not have any
obligation to indemnify any of the Heritage Parties or their Affiliates for
Losses under Section 9.1(a)(i) or Section 9.1(a)(ii) unless and until the
aggregate amount of all such Losses under Section 9.1(a)(i) or Section
9.1(a)(ii) exceeds $500,000 (regardless of whether, in the case of third party
actions, suits or proceedings with respect to any of the foregoing, La Grange
may have a meritorious defense), at and after which time La Grange shall be
liable for all Losses in excess of $500,000 and which do not in the aggregate
exceed $10,000,000; provided however, that any liabilities for which accruals
have been made by La Grange on the La Grange Financial Statement shall be
excluded in determining whether losses exceed $500,000. The rights and remedies
of the Heritage Parties based upon, arising out of or otherwise in respect of
any clause of this Section 9.1 or any representation, warranty or covenant in
this Agreement shall in no way be limited by the fact that the act, omission,
occurrence or other state of facts upon which any such claim is based may also
be the subject matter of any representation, warranty or covenant in this
Agreement that would not give rise to any rights or remedies of the Heritage
Parties.

         9.2      INDEMNIFICATION OBLIGATIONS OF THE HERITAGE PARTIES.

         (a)      The Heritage Parties shall, jointly and severally, indemnify
La Grange and any of its owners, partners, officers, agents and their respective
Affiliates and controlling Persons (the "La Grange Indemnified Parties"), as the
case may be, and hold such Persons harmless against and in respect of any and
all Losses arising out of, based upon or resulting from:

                                       55

<PAGE>

                  (i)      the breach of any representation or warranty of the
         Heritage Parties contained in or made pursuant to this Agreement (other
         than breaches and warranties set forth in Section 3.2, Section 3.3,
         Section 3.7, and Section 3.19);

                  (ii)     the breach of any representation or warranty of the
         Heritage Parties contained in or made pursuant to Section 3.19
         [Environmental Matters];

                  (iii)    the breach of any representations or warranty of the
         Heritage Parties contained in or made pursuant to Section 3.2
         [Capitalization of the Heritage Entities], Section 3.3 [Authority and
         Binding Agreement], Section 3.7 [Title to Heritage Assets], and

                  (iv)     the breach by the Heritage Parties or the failure by
         the Heritage Parties to observe or perform in any material respect, any
         of its covenants or agreements contained in Section 5.6, Section 5.7,
         Section 6.4, Section 6.5, Section 6.6, Section 6,10, Section 6.12,
         Section 6.13, Section 6.14 or Article 10 of this Agreement.

         (b)      Notwithstanding the foregoing, the Heritage Parties will not
have any obligation to indemnify La Grange or its Affiliates for Losses under
Section 9.2(a)(i) or Section 9.2(a)(ii) unless and until the aggregate amount of
all such Losses under Section 9.2(a)(i) or Section 9.2(a)(ii) exceeds $500,000
(regardless of whether, in the case of third party actions, suits or proceedings
with respect to any of the foregoing, the Heritage Parties may have a
meritorious defense), at and after which time the Heritage Parties shall be
liable for all Losses in excess of $500,000 and which do not in the aggregate
exceed $10,000,000; provided however, that any liabilities for which accruals
have been made by the Heritage Parties on the Heritage Financial Statements
shall be excluded in determining whether losses exceed $500,000. The rights and
remedies of La Grange based upon, arising out of or otherwise in respect of any
clause of this Section 9.2 or any representation, warranty or covenant in this
Agreement shall in no way be limited by the fact that the act, omission,
occurrence or other state of facts upon which any such claim is based may also
be the subject matter of any representation, warranty or covenant in this
Agreement that would not give rise to any rights or remedies of La Grange.

         9.3      INDEMNIFICATION PROCEDURES.

         (a)      Promptly upon receipt by a Party indemnified under this
Article 9 (an "Indemnified Party") of notice of the commencement of any action
against such Indemnified Party (a "Third Party Action") in respect of which
indemnity or reimbursement may be sought against a party required to make
indemnification hereunder (an "Indemnifying Party"), such Indemnified Party
shall notify the Indemnifying Party in writing of the commencement of such Third
Party Action, but the failure so to notify the Indemnifying Party shall not
relieve it of any liability which it may have to any Heritage Indemnified Party
under Section 9.1 or any La Grange Indemnified Party under Section 9.2, as
applicable, unless such failure actually and materially adversely affects the
defense of such Third Party Action. In case notice of commencement of any such
Third Party Action shall be given to the Indemnifying Party as above provided,
the Indemnifying Party shall be entitled to participate in and to assume the
defense of such action at its own expense, with counsel chosen by it that is
reasonably satisfactory to the Indemnified Party; provided, however, that:

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<PAGE>

                  (i)      the Indemnified Party shall be entitled to
         participate in the defense of such Third Party Action and to employ
         counsel at its own expense to assist in the handling of such Third
         Party Action (provided that the Indemnified Party shall be entitled to
         reimbursement for such expenses in accordance with subclauses (A) and
         (B) below in Section 9.3(b));

                  (ii)     the Indemnifying Party shall obtain the prior written
         approval of the Indemnified Party, which approval shall not be
         unreasonably withheld or delayed, before entering into any settlement
         of such Third Party Action or ceasing to defend against such Third
         Party Action, if pursuant to or as a result of such settlement or
         cessation, injunctive or other equitable relief would be imposed
         against the Indemnified Party or the Indemnified Party would be
         adversely affected thereby;

                  (iii)    no Indemnifying Party shall consent to the entry of
         any judgment or enter into any settlement that does not include as an
         unconditional term thereof the giving by each claimant or plaintiff to
         each Indemnified Party of a release from all liability in respect of
         such Third Party Action; and

                  (iv)     the Indemnifying Party shall not be entitled to
         control the defense of any Third Party Action unless within 15 days
         after receipt of such written notice from the Indemnified Party, the
         Indemnifying Party confirms in writing its responsibility to indemnify
         the Indemnified Party with respect to such Third Party Action and
         reasonably demonstrates that it will be able to pay the full amount of
         the reasonably expected Losses in connection with any such Third Party
         Action.

         (b)      Except as set forth in the following sentence, after written
notice by the Indemnifying Party to the Indemnified Party of its election to
assume control of the defense of any such Third Party Action in accordance with
the foregoing and compliance by the Indemnifying Party with Section 9.3(d), (i)
the Indemnifying Party shall not be liable to the Indemnified Party hereunder
for any fees and expenses of counsel subsequently incurred by the Indemnified
Party attributable to defending against such Third Party Action, and (ii) as
long as the Indemnifying Party is reasonably contesting such Third Party Action
in good faith, the Indemnified Party shall not admit any liability with respect
to, or settle, compromise or discharge the claim underlying, such Third Party
Action without the prior written consent of the Indemnifying Party (which
consent shall not be unreasonably withheld or delayed). If (A) the Indemnifying
Party does not assume control of the defense of such Third Party Action in
accordance with this Section 9.3, or (B) the Indemnified Party has been advised
in writing by counsel that representation of such Indemnified Party and the
Indemnifying Party by the same counsel would be inappropriate under applicable
standards of professional conduct (in which case the Indemnifying Party shall
not have the right to assume the defense of such Third Party Action on behalf of
the Indemnified Party), in each case the Indemnified Party shall have the right
to defend and/or settle such Third Party Action in such manner as it may deem
appropriate at the cost and expense of the Indemnifying Party, and the
Indemnifying Party shall promptly reimburse the Indemnified Party therefore in
accordance with this Article 9. The reimbursement of fees and expenses of
counsel required by this Article 9 shall be made by periodic payments during the
course of the investigation or defense, as and when bills are received or
expenses incurred.

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<PAGE>

         (c)      If the Indemnifying Party shall be obligated to indemnify the
Indemnified Party pursuant to this Article 9, the Indemnifying Party shall be
subrogated to all rights of the Indemnified Party with respect to the claims to
which such indemnification relates. If an Indemnified Party becomes entitled to
any indemnification from an Indemnifying Party, such indemnification shall be
made in cash upon demand.

         (d)      The right of indemnification pursuant to this Article 9 shall
constitute the sole and exclusive remedy of each of the Parties to this
Agreement and their respective Affiliates, managers, directors, officers,
members, employees and other agents and representatives, other than with respect
to fraud or willful breach by a Party. So long as a claim for indemnification
pursuant to this Article 9 is being contested in good faith by the Indemnifying
Party or such claim shall otherwise remain unliquidated, such claim shall not
affect any of the rights of the Indemnifying Party under this Agreement.

         9.4      SURVIVAL.

         (a)      All representations, warranties, covenants and agreements
contained in this Agreement other than those set forth in Article 9 hereof,
shall expire with and be terminated and extinguished by the Closing, and
thereafter no Party nor any of such Party's owners, partners, officers, agents,
and Affiliates shall have any liability with respect to such representations,
warranties, covenants and agreements conducted by any Party and any information
which any Party may receive (other than information identified in the Schedules
to this Agreement).

         (b)      The right to indemnification:

                  (i)      with respect to any breach or violation of any of the
         representations and warranties contained in Section 3.19 [Environmental
         Matters] and Section 4.19 [Environmental Matters] shall survive for two
         years following the Closing;

                  (ii)     with respect to any breach or violation of any of the
         representations and warranties contained in Section 3.7 [Title to
         Heritage Assets] and Section 4.7 [Title to La Grange Assets] shall
         survive for one year following the Closing;

                  (iii)    with respect to any breach or violation of any of the
         representations and warranties contained in Section 3.2,
         [Capitalization of the Heritage Entities], Section 3.3, [Authority and
         Binding Agreement], Section 4.2 [Capitalization of the La Grange
         Entities], Section 4.3 [Authority and Binding Agreement], and Section
         4.23 [Investment Intent], shall survive indefinitely; and

                  (iv)     and with respect to any of the covenants and
         agreements contained in Section 5.6, Section 5.7, Section 6.4, Section
         6.5, Section 6.6, Section 6.10, Section 6.12, Section 6.13, Section
         6.14 or Article 10 of this Agreement, shall survive for the applicable
         statute of limitations.

         (c)      The expiration of any survival period under this Agreement
will not affect the liability of any Party under this Article 9 for any Loss as
to which a bona fide claim has been asserted prior to the termination of such
survival period.

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<PAGE>

         9.5      NO SPECIAL OR CONSEQUENTIAL DAMAGES. No Party shall be
entitled to recover special, consequential, exemplary or punitive damages from
the other Parties, and each Party hereby waives any claim or right to special,
consequential, exemplary or punitive damages hereunder, even if caused by the
active, passive, sole, joint, concurrent or comparative negligence, strict
liability, or other fault of any Party, other than fraud or intentional
misconduct.

                                   ARTICLE 10
                                  MISCELLANEOUS

         10.1     NOTICES. All notices, requests, demands and other
communications required or permitted to be given or made hereunder by any Party
shall be in writing, and shall be delivered either personally, or by registered
or certified mail (postage prepaid and return receipt requested) or by express
courier or delivery service, or by telegram, telefax, telex or similar facsimile
means, to the Parties, at the addresses (or at such other addresses as shall be
specified by the Parties by like notice) set forth below:

         (a)      If to La Grange:

                           c/o ETC Holdings, LP
                           2838 Woodside Street
                           Dallas, Texas
                           Attention: Clay Kutch
                           Facsimile: (214) 981-0701

                  with a copy to:

                           Thompson & Knight L.L.P.
                           1700 Pacific Avenue, Suite 3300
                           Dallas, Texas 75201
                           Attention: Jeffrey A. Zlotky
                           Facsimile: (214) 969-1751

         (b)      If to Heritage MLP or Heritage OLP:

                           H. Michael Krimbill
                           8801 South Yale, Suite 310
                           Tulsa, Oklahoma 74137
                           Facsimile: 918-493-7290

                  with a copy to:

                           Robert A. Burk, Esq.
                           Doerner, Saunders, Daniel & Anderson L.L.P.
                           320 South Boston Avenue, Suite 500
                           Tulsa, Oklahoma 74103
                           Facsimile: 918-591-5360

                  and

                                       59

<PAGE>

                           Lawrence T. Chambers, Jr., Esq.
                           Doerner, Saunders, Daniel & Anderson L.L.P.
                           320 South Boston Avenue, Suite 500
                           Tulsa, Oklahoma 74103
                           Facsimile: 918-591-5360

Notices and other communications shall be deemed given or made (i) when
received, if sent by telegram, telefax, telex or similar facsimile means
(written confirmation of such receipt by confirmed facsimile transmission being
deemed receipt of communications sent by telefax, telex or similar facsimile
means) and (ii) when delivered and receipted for (or upon the date of attempted
delivery where delivery is refused), if hand-delivered, sent by registered or
certified mail or sent by express courier or delivery service, except in the
case of facsimile transmissions received after the normal close of business at
the receiving location, which shall be deemed given on the next Business Day.

         10.2     ENTIRE AGREEMENT. This Agreement and the documents referred to
herein, together with the Schedules and Exhibits hereto (where applicable, as
executed and delivered), constitute the entire agreement between the Parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, both written and oral, between the Parties with respect to the
subject matter hereof.

         10.3     BINDING EFFECT; ASSIGNMENT; NO THIRD PARTY BENEFIT. This
Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and permitted assigns. Neither this Agreement nor
any of the rights, interests or obligations hereunder shall be assigned (whether
by operation of law or otherwise) by any Party without the prior written consent
of each of the Parties, and any purported assignment without such consent shall
be void. Except as provided in Article 9 nothing in this Agreement, express or
implied, is intended to or shall confer upon any Person other than the Parties,
and their respective successors and permitted assigns, any rights, benefits or
remedies of any nature whatsoever under or by reason of this Agreement.

         10.4     SEVERABILITY. If any provision of this Agreement is held to be
unenforceable, this Agreement shall be considered divisible and such provision
shall be deemed inoperative to the extent it is deemed unenforceable, and in all
other respects this Agreement shall remain in full force and effect; provided,
however, that if any such provision may be made enforceable by limitation
thereof, then such provision shall be deemed to be so limited and shall be
enforceable to the maximum extent permitted by Applicable Law.

         10.5     GOVERNING LAW. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Texas,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Texas or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Texas.

         10.6     JURISDICTION. Any legal action, suit or proceeding in law or
equity arising out of or relating to this Agreement or the transactions
contemplated by this Agreement may only be instituted in any state or federal
court located in the State of Texas, and each Party agrees not to

                                       60

<PAGE>

assert, by way of motion, as a defense or otherwise, in any such action, suit or
proceeding, any claim that it is not subject personally to the jurisdiction of
such court, that its property is exempt or immune from attachment or execution,
that the action, suit or proceeding is brought in an inconvenient forum, that
the venue of the action, suit or proceeding is improper or that this Agreement,
or the subject matter hereof or thereof may not be enforced in or by such court.
Each Party further irrevocably submits to the jurisdiction of any such court in
any such action, suit or proceeding. Any and all service of process and any
other notice in any such action, suit or proceeding shall be effective against
any Party if given by registered or certified mail (return receipt requested) or
by any other means which requires a signed receipt in accordance with, and at
the address listed in, Section 10.1. Nothing herein contained shall be deemed to
affect the right of any Party to serve process in any manner permitted by law.

         10.7     FURTHER ASSURANCES. From time to time following the Closing,
at the request of any Party and without further consideration, the other Parties
shall execute and deliver to such requesting Party such instruments and
documents and take such other action as such requesting Party may reasonably
request or as may be otherwise necessary to (a) more fully and effectively
transfer to, and vest in, the Heritage Parties, the La Grange Interests and the
La Grange Assets, (b) enable the Heritage Parties or the La Grange Entities to
assume and fully and timely perform in accordance with their terms any or all of
the La Grange Contracts, (c) enable the Heritage Parties or the La Grange
Entities to continue the La Grange Business, and (d) otherwise consummate more
fully and effectively the transactions contemplated by this Agreement and the
Other Transaction Documents.

         10.8     DESCRIPTIVE HEADINGS. The descriptive headings herein are
inserted for convenience of reference only, do not constitute a part of this
Agreement and shall not affect in any manner the meaning or interpretation of
this Agreement.

         10.9     COUNTERPARTS. This Agreement may be executed by the Parties in
any number of counterparts, each of which shall be deemed an original, but all
of which shall constitute one and the same agreement.

                            [SIGNATURE PAGES FOLLOW]

                                       61

<PAGE>

         IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly
executed as of the day and year first above written.

                                     La Grange Energy, L.P.

                                     By:________________________________________

                                              General Partner

                                     By:________________________________________

                                     Its:_______________________________________

                                     Heritage Propane Partners, L.P.

                                     By:  U.S. Propane, L.P., General Partner

                                     By:  U.S. Propane, L.L.C., General Partner

                                     By:________________________________________

                                     Its:_______________________________________

                                     U.S. Propane, L.P.

                                     By:  U.S. Propane, L.L.C., General Partner

                                     By:________________________________________

                                     Its:_______________________________________

                                                          CONTRIBUTION AGREEMENT
                                                 EXECUTION COPY NOVEMBER 6, 2003

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