Document:

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                                                                    Exhibit 10.T

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

                           PURCHASE AND SALE AGREEMENT

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

                                 By and Between

                         GULFTERRA ENERGY PARTNERS, L.P.
                                  (Partnership)

                                       and

                               GOLDMAN SACHS & CO.
                                   (Investor)

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

                           Covering the Acquisition of

                         3,000,000 SERIES A COMMON UNITS
                                 (Subject Units)

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

                                 October 2, 2003

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                                TABLE OF CONTENTS

<Table>

<S>      <C>                                                                                                    <C>
1.       Definitions..............................................................................................1

2.       The Transactions.........................................................................................7
         (a)      Sale of Subject Units...........................................................................7
         (b)      Consideration...................................................................................7
         (c)      The Closing.....................................................................................7
         (d)      Deliveries at the Closing.......................................................................8

3.       Representations and Warranties Concerning the Investor...................................................8
         (a)      Organization of the Investor....................................................................8
         (b)      Authorization of Transaction....................................................................8
         (c)      Noncontravention................................................................................9
         (d)      Brokers' Fees...................................................................................9
         (e)      Independent Investigation.......................................................................9
         (f)      Investment Intent; Investment Experience; Restricted Securities.................................9
         (g)      Investor Status.................................................................................9

4.       Representations and Warranties Concerning the Partnership...............................................10
         (a)      Organization and Qualification.................................................................10
         (b)      Authorization of Transaction...................................................................10
         (c)      Noncontravention...............................................................................10
         (d)      Capitalization.................................................................................11
         (e)      Subsidiaries...................................................................................11
         (f)      Adequacy of Assets.............................................................................11
         (g)      SEC Reports....................................................................................12
         (h)      Litigation.....................................................................................12
         (i)      Compliance with Applicable Laws................................................................12
         (j)      Taxes..........................................................................................13
         (k)      Contracts and Commitments......................................................................14
         (l)      Environmental Matters..........................................................................14
         (m)      Employees; Employee Plans......................................................................15
         (n)      Fairness Opinion; Special Committee Approval...................................................15
         (o)      Intellectual Property..........................................................................16
         (p)      No Default.....................................................................................16
         (q)      Independent Accountants........................................................................16
         (r)      Broker's Fees..................................................................................16
         (s)      GP Capital Account.............................................................................16
         (t)      NYSE Listing...................................................................................16

5.       Remedies for Breaches of this Agreement.................................................................17
         (a)      Survival of Representations and Warranties.....................................................17
         (b)      Indemnification Provisions for Benefit of the Investor.........................................17
         (c)      Indemnification Provisions for Benefit of the Partnership......................................18
         (d)      Matters Involving Third Parties................................................................18
         (e)      Determination of Amount of Adverse Consequences................................................19
         (f)      Compliance with Express Negligence Rule........................................................19
</Table>

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<Table>
<S>      <C>                                                                                                    <C>
         (g)      Tax Treatment of Indemnity Payments............................................................19

6.       [Intentionally Omitted].................................................................................20

7.       Miscellaneous...........................................................................................20
         (a)      Confidentiality, Press Releases and Public Announcements.......................................20
         (b)      No Third Party Beneficiaries...................................................................20
         (c)      Succession and Assignment......................................................................20
         (d)      Counterparts...................................................................................20
         (e)      Notices........................................................................................20
         (f)      Governing Law..................................................................................21
         (g)      Remedy and Waiver..............................................................................22
         (h)      Further Assurances.............................................................................22
         (i)      Amendments and Waivers.........................................................................22
         (j)      Severability...................................................................................22
         (k)      Transaction Expenses...........................................................................22
         (l)      Construction...................................................................................23
         (m)      Incorporation of Exhibits and Schedules........................................................23
         (n)      Entire Agreement...............................................................................23
</Table>

                             EXHIBITS AND SCHEDULES

Exhibit A:        Form of Exchange Agreement
Exhibit B:        Form of Reduction Agreement

Schedule 1(a):             Knowledge (Partnership)
Schedule 3(b):             Consents (Investor)
Schedule 4(b):             Consents (Partnership)
Schedule 4(d):             Capitalization
Schedule 4(f):             Adequacy of Assets
Schedule 4(h):             Litigation
Schedule 4(i):             Compliance with Applicable Laws
Schedule 4(j):             Taxes
Schedule 4(k)              Contracts and Commitments
Schedule 4(k)(i):          Full Force and Effect
Schedule 4(k)(ii):         Defaults
Schedule 4(l):             Environmental Matters

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                           PURCHASE AND SALE AGREEMENT

         THIS PURCHASE AND SALE AGREEMENT (this "Agreement") dated as of October
2, 2003 is by and between GulfTerra Energy Partners, L.P., a Delaware limited
partnership (the "Partnership"), and Goldman Sachs & Co., a New York limited
partnership (the "Investor"). The Partnership and the Investor are sometimes
referred to collectively herein as the "Parties" and individually as a "Party."

                                    RECITALS

1. The Partnership desires to issue to the Investor, and the Investor desires to
purchase from the Partnership, 3,000,000 newly issued Series A Common Units
(defined herein) (the "Subject Units").

2. GulfTerra GP Holding Company, a Delaware corporation ("GulfTerra Holding")
and the Investor are parties to that certain Purchase and Sale Agreement, dated
the date hereof (the "LLC Purchase Agreement"), whereby GulfTerra Holding will
sell to an affiliate of the Investor 100% of the Class A Membership Interest
(defined herein) of GulfTerra Energy Company, L.L.C., a Delaware limited
liability company (the "General Partner").

                                    AGREEMENT

         In consideration of the premises and the mutual promises herein made,
and in consideration of the representations, warranties, and covenants herein
contained, the Parties stipulate and agree as follows:

         1. Definitions. Unless otherwise provided for herein, the following
terms have the following meanings:

         "Adverse Consequences" means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments,
orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid
in settlement, liabilities, obligations, Taxes, liens, losses, expenses, and
fees, including court costs and attorneys' fees and expenses, but excluding any
punitive, exemplary, special, indirect, remote, speculative or consequential
damages (including any damages on account of lost profit or opportunities).

         "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act.

         "Agreement" has the meaning set forth in the preface.

         "CERCLA" means the Comprehensive Environmental Response, Compensation,
and Liability Act, 42 U.S.C. Section 9601 et seq., as amended.

         "Class A Membership Interest" means the Class A Membership Interest of
the General Partner having the rights, powers and privileges set forth in the
Organizational Documents of the General Partner.

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         "Closing" has the meaning set forth in Section 2(c).

         "Closing Date" has the meaning set forth in Section 2(c).

         "Code" means the Internal Revenue Code of 1986, as amended, or any
successor Law.

         "Commitment" means any options, warrants, convertible securities,
exchangeable securities, subscription rights, conversion rights, exchange rights
or other contracts that could require a Person to issue, redeem, purchase, or
sell any of its Equity Interests.

         "Compensation Plan" means the Partnership's 1998 Omnibus Compensation
Plan, as amended, restated, supplemented or otherwise modified through the date
hereof.

         "Debt Encumbrances" means any liens or other Encumbrances created
pursuant to the Partnership Indentures or the Partnership Entities Credit
Agreements.

         "Delaware GP Act" means the Delaware Revised Uniform Partnership Act as
in effect on the date of this Agreement and as amended, restated or replaced
from time to time thereafter.

         "Delaware LLC Act" means the Delaware Limited Liability Company Act as
in effect on the date of this Agreement and as amended, restated or replaced
from time to time thereafter.

         "Delaware LP Act" means the Delaware Revised Uniform Limited
Partnership Act as in effect on the date of this Agreement and as amended,
restated or replaced from time to time thereafter.

         "DGCL" means the Delaware General Corporation Law as in effect on the
date of this Agreement and as amended, restated or replaced from time to time
thereafter.

         "Encumbrance" means any mortgage, pledge, lien, encumbrance, charge or
security interest.

         "Environmental Laws" means any and all laws, statutes, regulations,
rules, orders, ordinances, codes, directives, permits, legal requirements and
rules of common law of any Governmental Authority pertaining to health, safety
or the environment (including, without limitation, any natural resource damages,
any generation, use, storage, treatment, Release, threatened Release, or
emission of Hazardous Materials into the indoor or outdoor environment, and any
exposure to Hazardous Materials) now or hereafter in effect and any judicial or
administrative interpretation (including, but not limited to, any judicial or
administrative order, consent decree, judgment or settlement) thereof,
including, without limitation, CERCLA, the Superfund Amendments Reauthorization
Act, 42 U.S.C. Section 11001 et seq., the Resource Conservation and Recovery
Act, 42 U.S.C. Section 6901 et seq., the Clean Air Act, 42 U.S.C. Section 7401
et seq., the Federal Water Pollution Control Act, 33 U.S.C. Section 1251 et
seq., the Oil Pollution Act of 1990, 33 U.S.C. Section 2701 et seq., the Toxic
Substances Control Act, 15 U.S.C. Section 2601 et seq., the Safe Drinking Water
Act, 42 U.S.C. Section 300f et seq., the Occupational Safety and Health Act, 29
U.S.C. Section 651 et seq., and the Federal Hazardous Materials Transportation
Law, 49 U.S.C. Section 5101 et seq., as each has been amended from time to time,
and all other environmental conservation and protection laws.

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         "EP" means El Paso Corporation, a Delaware corporation.

         "Equity Interests" means (a) with respect to a corporation, any and all
shares of capital stock and any Commitments with respect thereto, (b) with
respect to a partnership, limited liability company, trust or similar Person,
any and all units, interests or other partnership, limited liability company,
trust or similar interests, and any Commitments with respect thereto, and (c)
any other direct equity ownership or participation in a Person.

         "ERISA" has the meaning set forth in Section 4(m).

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) treated as being a "single employer" with the Partnership pursuant
to Section 414 of the Code.

         "Exchange Agreement" means the Exchange and Registration Rights
Agreement in substantially the form of Exhibit A.

         "Exchange Period" has the meaning set forth in the Exchange Agreement.

         "Fairness Opinion" means the fairness opinion dated October 2, 2003
from a nationally recognized investment banking firm relating to the redemption
of the Partnership's Series B Preference Units, the Exchange Agreement and
certain other matters.

         "GAAP" means accounting principles generally accepted in the United
States consistently applied, as in effect at the time of the determination.

         "Gateway" means Deepwater Gateway L.L.C., a Delaware limited liability
company.

         "General Partner" has the meaning set forth in the preface.

         "Governmental Authority" means any court, tribunal, arbitrator,
authority, agency, commission, official, or other instrumentality of the United
States, any foreign country, or domestic or foreign state, county, city, or
other political subdivision.

         "GTM Finance" means GulfTerra Energy Finance Corporation, a Delaware
corporation.

         "GulfTerra Holding" has the meaning set forth in the Recitals.

         "Hazardous Materials" mean (i) any "hazardous waste," "extremely
hazardous waste," "industrial waste," "solid waste," "hazardous material,"
"hazardous substance," "toxic substance," "hazardous material," "pollutant," or
"contaminant" as those or similar terms are defined, identified, or regulated
under any Environmental Laws; (ii) any asbestos containing materials, whether in
a friable or non-friable condition, polychlorinated biphenyls, or radon; (iii)
any oil or gas exploration or production waste or any petroleum, petroleum
hydrocarbons, petroleum products, crude oil and any components, fractions, or
derivatives thereof; and (iv) any substance that, whether by its nature or its
use, is subject to regulation under any Environmental Law or for which any
Governmental Authority requires environmental investigation, remediation, or
monitoring.

                                       3
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         "Indemnified Party" has the meaning set forth in Section 5(d).

         "Indemnifying Party" has the meaning set forth in Section 5(d).

         "Investor" has the meaning set forth in the preface.

         "Investor Indemnitees" means, collectively, the Investor and its
Affiliates and each of their respective officers (or natural persons performing
similar functions), directors (or natural persons performing similar functions),
employees, agents and representatives to the extent acting in such capacity.

         "Knowledge" means, with respect to the Partnership, the actual
knowledge of the individuals listed on Schedule 1(a) hereto, without independent
investigation or inquiry.

         "Laws" means any statute, code, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any applicable
Governmental Authority.

         "LLC Agreement" means that certain First Amended and Restated Limited
Liability Company Agreement of the General Partner, dated the date hereof.

         "LLC Purchase Agreement" has the meaning set forth in the Recitals.

         "Material Adverse Effect" means any material adverse change or effect,
individually or in the aggregate, to the businesses, operations, financial
condition, assets, liabilities or properties of the Partnership and the
Partnership Subsidiaries, taken as a whole, provided that in determining whether
a Material Adverse Effect has occurred, changes or effects relating to (i) the
general economic conditions in the industries in which the Partnership and the
Partnership Subsidiaries operate, (ii) United States or global economic
conditions or financial markets in general, or (iii) the transactions
contemplated by this Agreement, shall not be considered.

         "Ordinary Course of Business" means the ordinary course of business
consistent with the applicable Person's past custom and practice (including with
respect to quantity and frequency).

         "Organizational Documents" means the articles of incorporation,
certificate of incorporation, charter, bylaws, articles or certificate of
formation, regulations, operating agreement, limited liability company
agreement, certificate of limited partnership, partnership agreement, and all
other similar documents, instruments or certificates executed, adopted, or filed
in connection with the creation, formation, or organization of a Person,
including any amendments thereto.

         "Parent Guaranty" has the meaning given such term in the LLC Purchase
Agreement.

         "Partnership" has the meaning set forth in the preface.

         "Partnership Agreement" means the Second Amended and Restated Limited
Partnership Agreement of the Partnership, as amended, restated, supplemented or
otherwise modified through the date of this Agreement.

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         "Partnership Assets" means all of the assets of the Partnership and the
Partnership Subsidiaries.

         "Partnership Contracts" has the meaning set forth in Section 4(k).

         "Partnership Entities Credit Agreements" means (a) (i) the Seventh
Amended and Restated Credit Agreement among the Partnership, GTM Finance, the
several lenders from time to time parties thereto, Fortis Capital Corporation,
as Syndication Agent, Credit Lyonnais New York Branch, BNP Paribas and Wachovia
Bank, National Association, as Co-Documentation Agents and JPMorgan Chase Bank,
as Administrative Agent, dated as of March 23, 1995, as amended and restated
through September 25, 2003, and (ii) the other financing documents (as
identified therein) and (b) (i) the Credit Agreement dated as of August 15,
2002, among Gateway, as borrower, JPMorgan Chase Bank, individually and as
Administrative Agent, Wachovia Bank, National Association and Bank One, N.A., as
Syndication Agents, Fortis Capital Corp. and BNP Paribas, as Documentation
Agents, and the lenders party thereto, and (ii) the other financing documents
(as identified therein); in the case of (a)(i) and (ii) and (b)(i) and (ii)
above, as amended, restated, supplemented or otherwise modified through the date
hereof.

         "Partnership Indemnitees" means, collectively, the Partnership,
GulfTerra Holding, EP and each of their respective Affiliates and each of their
respective officers (or Persons performing similar functions), directors (or
Persons performing similar functions), employees, agents, and representatives.

         "Partnership Indentures" means, collectively, (i) the Indenture dated
as of May 27, 1999, among the Partnership, GTM Finance, the Subsidiary
Guarantors named therein and Chase Bank of Texas, N.A., as Trustee, (ii) the
Indenture dated as of May 17, 2001, among the Partnership, GTM Finance, the
Subsidiary Guarantors named therein and The Chase Manhattan Bank, as Trustee;
(iii) the Indenture dated as of November 27, 2002, among the Partnership, GTM
Finance, the Subsidiary Guarantors named therein and JPMorgan Chase Bank, as
Trustee; (iv) the Indenture dated as of March 24, 2003, among the Partnership,
GTM Finance, the Subsidiary Guarantors named therein and JPMorgan Chase Bank, as
Trustee; and (v) the Indenture dated as of July 3, 2003, among the Partnership,
GTM Finance, the Subsidiary Guarantors named therein and Wells Fargo Bank,
National Association, as Trustee; in the case of (i) through (v) above, as
amended, restated, supplemented or otherwise modified through the date hereof.

         "Partnership Plans" means any bonus, pension, stock option, stock
purchase, benefit, welfare, profit-sharing, retirement, disability, vacation,
severance, hospitalization, insurance, incentive, deferred compensation and
other similar fringe or employee benefit plans, funds, programs or arrangements
of the Partnership.

         "Partnership Subsidiaries" means all of the Subsidiaries of the
Partnership.

         "Party" and "Parties" have the meanings set forth in the preface.

         "Permitted Encumbrances" means any of the following: (i) any liens for
Taxes and assessments not yet delinquent or, if delinquent, that are being
contested in good faith in the Ordinary Course of Business; (ii) any obligations
or duties reserved to or vested in any

                                       5
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municipality or other Governmental Authority to regulate any Partnership Asset
in any manner including all applicable Laws; (iii) mechanic's, materialmen's,
and similar liens; (iv) purchase money liens and liens securing rental payments
under capital lease arrangements; or (v) any liens or other Encumbrances created
pursuant to the Transaction Agreements or the Organizational Documents of the
Partnership or any Partnership Subsidiary.

         "Permits" has the meaning given such term in Section 4(i).

         "Person" means an individual or entity, including any partnership,
corporation, association, joint stock company, trust, joint venture, limited
liability company, unincorporated organization, or Governmental Authority (or
any department, agency or political subdivision thereof).

         "Purchase Price" means $112 million.

         "Reduction Agreement" means the Incentive Distribution Rights Reduction
Agreement in substantially the form of Exhibit B.

         "Release" means any depositing, spilling, leaking, pumping, pouring,
placing, emitting, discarding, abandoning, emptying, discharging, migrating,
injecting, escaping, leaching, dumping, or disposing.

         "SEC" means the Securities and Exchange Commission.

         "SEC Reports" means all filings by the Partnership with the SEC that
are required or permitted under the Securities Act or the Securities Exchange
Act.

         "Securities Act" means the Securities Act of 1933, as amended from time
to time.

         "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time.

         "Series A Common Units" has the meaning given such term in the
Partnership Agreement.

         "Series B Preference Units" has the meaning given such term in the
Partnership Agreement.

         "Subject Units" has the meaning set forth in the Recitals.

         "Subsidiary" means, with respect to any relevant Person, (a) a
corporation of which more than 50% of the Voting Stock is owned, directly or
indirectly, at the date of determination, by such relevant Person, by one or
more Subsidiaries of such relevant Person or a combination thereof, (b) a
partnership (whether general or limited) in which such relevant Person, one or
more Subsidiaries of such relevant Person or a combination thereof is, at the
date of determination, a general or limited partner of such partnership, but
only if more than 50% of the partnership interests of such partnership
(considering all of the partnership interests of the partnership as a single
class) is owned, directly or indirectly, at the date of determination, by

                                       6
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such relevant Person, by one or more Subsidiaries of such relevant Person, or a
combination thereof, or (c) any other Person (other than a corporation or a
partnership) in which such relevant Person, one or more Subsidiaries of such
relevant Person, or a combination thereof, directly or indirectly, at the date
of determination, has (i) at least a majority ownership interest or (ii) the
power to elect or direct the election of a majority of the directors or other
governing body of such other Person.

         "Tax" or "Taxes" means any federal, state, local, or foreign income,
gross receipts, license, payroll, employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental (including taxes under Code
Section 59A), custom duties, capital stock, franchise, profits, withholding,
social security (or similar excises), unemployment, disability, ad valorem, real
property, personal property, sales, use, transfer, registration, value added,
alternative or add-on minimum, estimated, or other tax, assessment, fee or other
governmental charge of any kind whatsoever, including any interest, penalty or
addition thereto, whether disputed or not.

         "Tax Return" means any return, declaration, report, claim for refund,
or information return or statement relating to Taxes required to be filed with
any Governmental Authority, including any schedule or attachment thereto, and
including any amendment thereof.

         "Third Party Claim" has the meaning set forth in Section 5(d).

         "Transaction Agreements" means this Agreement, the LLC Agreement, the
LLC Purchase Agreement, the Transfer Application, the Parent Guaranty, the
Exchange Agreement, the Reduction Agreement and all other agreements, documents,
certificates or instruments executed and delivered in connection with the
transactions contemplated herein.

         "Transfer Application" means a Transfer Application admitting the
Investor into the Partnership as an Additional Limited Partner (as such term is
defined in the Partnership Agreement) in a form required by the Partnership
Agreement.

         "Voting Stock" means, with respect to any Person, Equity Interests in
such Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or Persons with
management authority performing similar functions) of such Person.

         2. The Transactions.

                  (a) Sale of Subject Units. Subject to the terms and conditions
of this Agreement, the Partnership agrees to issue and sell the Subject Units to
the Investor, and the Investor agrees to purchase the Subject Units from the
Partnership.

                  (b) Consideration. In consideration for the sale of the
Subject Units, the Investor agrees to pay the Partnership the Purchase Price in
cash payable by wire transfer to the Partnership in immediately available
federal funds.

                  (c) The Closing. The closing of the transactions contemplated
by this Agreement (the "Closing") took place at the offices of the Partnership
on October 2, 2003 (the "Closing Date").

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                  (d) Deliveries at the Closing. At the Closing,

                           (i) GulfTerra Holding and the Investor executed and
                  delivered the LLC Purchase Agreement;

                           (ii) the General Partner, the Investor and the
                  Partnership executed and delivered the Exchange Agreement;

                           (iii) the Parties executed and delivered, or caused
                  to be executed and delivered, to each other the other
                  Transaction Agreements;

                           (iv) Akin Gump Strauss Hauer & Feld LLP delivered to
                  the Investor an opinion of counsel in a form reasonably
                  acceptable to the Investor;

                           (v) the Partnership issued the Subject Units to the
                  Investor and the Investor was admitted to the Partnership as
                  an additional limited partner; and

                           (vi) the Investor delivered to the Partnership the
                  Purchase Price.

         3. Representations and Warranties Concerning the Investor. The Investor
hereby represents and warrants to the Partnership that the following statements
are true and correct:

                  (a) Organization of the Investor. The Investor (x) is a
limited partnership duly organized, validly existing, and in good standing under
the law of the State of New York; (y) is qualified as a foreign limited
partnership in each jurisdiction which requires qualification, except where the
lack of such qualification has not had, or could reasonably be expected not to
have, a material adverse effect on the ability of the Investor to consummate the
transactions contemplated by the Transaction Agreements to which it is a party;
and (z) has all requisite power and authority to carry on its business as it is
now conducted.

                  (b) Authorization of Transaction. The Investor has full
limited partnership power and authority to execute and deliver each Transaction
Agreement to which it is a party and to perform its obligations thereunder. Each
Transaction Agreement to which the Investor is a party constitutes the valid and
legally binding obligation of the Investor, enforceable against it in accordance
with its terms and conditions, subject, however, to the effects of bankruptcy,
insolvency, reorganization, moratorium or similar Laws affecting creditors'
rights generally, and to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at Law). Except
as set forth on Schedule 3(b), the Investor need not give any notice to, make
any filing with, or obtain any authorization, consent, or approval of any
Governmental Authority in order to consummate the transactions contemplated by
this Agreement or any other Transaction Agreements to which it is a party.

                                       8
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                  (c) Noncontravention. Except as specified in Schedule 3(b),
neither the execution and delivery of any of the Transaction Agreements to which
the Investor is a party, nor the consummation of any of the transactions
contemplated thereby, shall (A) violate any Law to which the Investor is subject
or any provision of its Organizational Documents or (B) conflict with, result in
a breach of, constitute a default under, result in the acceleration of, create
in any Person the right to accelerate, terminate, modify, or cancel, or require
any notice, approval or consent under any agreement, contract, lease, license,
instrument, or other arrangement (x) to which the Investor is a party or by
which it is bound or (y) to which any of its assets is subject (or result in the
imposition of any Encumbrance upon any of the Investor's assets), except for
such violations, conflicts, breaches, defaults, accelerations, terminations,
modifications, cancellations, failures to give notice, Encumbrances or other
occurrences that would not have, or would reasonably be expected not to have, a
material adverse effect on the ability of the Investor to consummate the
transactions contemplated by the Transaction Agreements to which it is a party.

                  (d) Brokers' Fees. The Investor does not have any liability or
obligation to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement for which the
Partnership is, or could become, liable or obligated.

                  (e) Independent Investigation. The Investor has conducted its
own independent investigation, review and analysis of the business, operations,
assets, liabilities, results of operations, financial condition and prospects of
each of the Partnership and the Partnership Subsidiaries, both individually and
on a consolidated basis, which investigation, review and analysis was done by
the Investor and its Affiliates and, to the extent the Investor deemed necessary
or appropriate, by the Investor's representatives.

                  (f) Investment Intent; Investment Experience; Restricted
Securities. In acquiring the Subject Units, the Investor is not offering or
selling, and shall not offer or sell the Subject Units, for the Partnership in
connection with any distribution of any of the Subject Units, and the Investor
does not have a participation and shall not participate in any such undertaking
or in any underwriting of such an undertaking except in compliance with
applicable federal and state securities laws. The Investor acknowledges that it
is able to fend for itself, can bear the economic risk of its investment in the
Subject Units, and has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of an investment
in all of the Subject Units. The Investor is an "accredited investor" as such
term is defined in Regulation D under the Securities Act. The Investor
understands that none of the Subject Units shall have been registered pursuant
to the Securities Act or any applicable state securities laws, that all of the
Subject Units shall be characterized as "restricted securities" under federal
securities laws and that under such laws and applicable regulations none of the
Subject Units can be sold or otherwise disposed of without registration under
the Securities Act or an exemption therefrom.

                  (g) Investor Status. The Investor is not an employee benefit
plan or other organization exempt from taxation pursuant to Section 501(a) of
the Code, a non-resident alien, a foreign corporation or other foreign Person,
or a regulated investment company within the meaning of Section 851 of the Code.

                                       9
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         4. Representations and Warranties Concerning the Partnership. The
Partnership hereby represents and warrants to the Investor that the following
statements are true and correct:

                  (a) Organization and Qualification. The Partnership (x) is a
limited partnership duly organized, validly existing, and in good standing under
the Delaware LP Act; (y) is qualified as a foreign partnership under the Laws of
the state of Texas and in each other jurisdiction which requires qualification,
except where the lack of such qualification has not had, or could reasonably be
expected not to have, (I) a Material Adverse Effect or (II) a material adverse
effect on the ability of the Partnership to consummate the transactions
contemplated by the Transaction Agreements to which it is a party; and (z) has
all requisite power and authority to carry on its business as it is now
conducted.

                  (b) Authorization of Transaction. The Partnership has full
partnership power and authority to execute and deliver each Transaction
Agreement to which it is a party and to perform its obligations thereunder. Each
Transaction Agreement to which the Partnership is a party constitutes the valid
and legally binding obligation of the Partnership, enforceable against it in
accordance with its terms and conditions, subject, however, to the effects of
bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting
creditors' rights generally, and to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at Law).
Except as set forth on Schedule 4(b) or as required by the Securities Act, the
Securities Exchange Act, the limited partnership, securities or blue sky laws or
regulations of the various states and the rules of the New York Stock Exchange,
the Partnership need not give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any Governmental Authority in order to
consummate the transactions contemplated by this Agreement or any other
Transaction Agreement to which it is a party, other than filings, registrations,
authorizations, consents or approvals the failure to make or obtain which has
not had, or could reasonably be expected not to have, (i) a Material Adverse
Effect or (ii) a material adverse effect on the ability of the Partnership to
consummate the transactions contemplated by the Transaction Agreements to which
it is a party.

                  (c) Noncontravention. Except as specified in Schedule 4(b),
neither the execution and delivery of any of the Transaction Agreements to which
the Partnership is a party, nor the consummation of any of the transactions
contemplated thereby, shall (i) violate any Law to which the Partnership or any
of the Partnership Subsidiaries is subject or any provisions of their respective
Organizational Documents; or (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any Person
the right to accelerate, terminate, modify, or cancel, or require any notice
under any agreement, contract, lease, license, instrument, or other arrangement
(x) to which the Partnership or any Partnership Subsidiary is a party or by
which the Partnership or any Partnership Subsidiary is bound, or (y) to which
any Partnership Assets or any assets of any Partnership Subsidiary are subject
(or result in the imposition of any Encumbrance upon any of the Partnership
Assets or any of the assets of any Partnership Subsidiary), except for such
violations, conflicts, breaches, defaults, accelerations, terminations,
modifications, cancellations, failures to give notice, Encumbrances or other
occurrences that would not have, or would reasonably be expected not to have (i)
a Material Adverse Effect or (ii) a material adverse effect on the ability of
the Partnership to consummate the transactions contemplated by the Transactions
Agreements.

                                       10
<PAGE>

                  (d) Capitalization. The Partnership has issued and outstanding
(i) a one percent general partner interest, (ii) 50,533,649 of its Series A
Common Units, (iii) 123,865 of its Series B Preference Units, (iv) 10,937,500 of
its Series C Units and (v) 80 of its Series F convertible units, each of which
are validly issued and outstanding, fully paid and (except as set forth in the
Delaware LP Act for limited partnership interests) nonassessable. Except with
respect to the Partnership's Series F convertible units, the Partnership Plans,
the Compensation Plan, the Transaction Agreements or as otherwise provided in
Schedule 4(d), there are no Commitments with respect to any Equity Interest of
the Partnership.

                  (e) Subsidiaries. Each Partnership Subsidiary is a
corporation, partnership, limited liability company or other entity duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization (except where the failure to be duly organized,
validly existing and in good standing has not, or could reasonably be expected
not to have, a Material Adverse Effect) and has all requisite entity power and
authority to carry on its business as it is now being conducted. Each
Partnership Subsidiary is duly qualified to do business, and is in good
standing, in each jurisdiction where the character of its properties owned or
held under lease or the nature of its activities makes such qualification
necessary, except where the failure to be so qualified, when taken together with
all such failures, has not had, or could reasonably be expected not to have, a
Material Adverse Effect. All the outstanding Equity Interests of each
Partnership Subsidiary are validly issued, fully paid and (except as set forth
in the Delaware LP Act, the Delaware GP Act, the DGCL and the Delaware LLC Act
with respect to limited partnership interests, general partnership interests,
stock and limited liability company interests) nonassessable. The Partnership
owns its interest in each Subsidiary, free and clear of any Encumbrances other
than Permitted Encumbrances and Debt Encumbrances.

                  (f) Adequacy of Assets. Except as set forth on Schedule 4(f),
the tangible Partnership Assets are adequate (normal wear and tear excepted) to
permit the Partnership and the Partnership Subsidiaries to conduct their
respective businesses in substantially the same manner as conducted immediately
prior to the date of this Agreement, except for such businesses with respect to
which the failure to so conduct does not have, or could reasonably be expected
not to have, a Material Adverse Effect.

                                       11
<PAGE>

                  (g) SEC Reports. Since December 31, 2000, (i) the Partnership
has timely made all filings required to be made by the Securities Act and the
Securities Exchange Act, (ii) all filings by the Partnership with the SEC, at
the time filed (in the case of documents filed pursuant to the Securities
Exchange Act) or when declared effective by the SEC (in the case of registration
statements filed under the Securities Act) complied in all material respects
with the applicable requirements of the Securities Act and the Securities
Exchange Act and the rules and regulations of the SEC thereunder, (iii) no such
filing, at the time described above, contained any untrue statement of a
material fact or omitted to state any material fact required to be stated
therein in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading, and (iv) all financial
statements contained or incorporated by reference therein, complied as to form
when filed in all material respects with the rules and regulations of the SEC
with respect thereto, were prepared in accordance with GAAP applied on a
consistent basis throughout the periods involved (except for pro forma financial
statements and as may be indicated therein in the notes thereto and subject, in
the case of quarterly financial statements, to normal and recurring year-end
adjustments), and fairly present in all material respects the financial
condition and results of operations of the Partnership and the Partnership
Subsidiaries at and as of the respective dates thereof and the consolidated
results of its operations and changes in cash flows for the periods indicated
(subject, in the case of unaudited statements, to normal year-end audit
adjustments). Since December 31, 2002, (i) there has not occurred any event that
(singularly or together with other such events) had or could reasonably be
expected to have a Material Adverse Effect or (ii) except for liabilities and
obligations as described in the SEC Reports or as incurred in the Ordinary
Course of Business, none of the Partnership or any of the Partnership
Subsidiaries have incurred any liabilities or obligations (whether direct,
indirect, accrued or contingent), individually, or in the aggregate, that would
be required to be reflected or reserved against on a balance sheet prepared in
accordance with GAAP for such balance sheet not to be materially misleading
(without giving effect to the materiality standards in GAAP).

                  (h) Litigation. Except as disclosed in the SEC Reports or in
Schedule 4(h), there is neither (i) any suit, action or proceeding to which the
Partnership or any Partnership Subsidiary is a party pending or, to the
Partnership's Knowledge, threatened against the Partnership or any of the
Partnership Subsidiaries nor (ii) any judgment, decree, injunction, rule or
order of any Governmental Authority or arbitrator outstanding against the
Partnership or any Partnership Subsidiary, except in the case of (i) and (ii)
above those which, alone or in the aggregate, have not had, or could reasonably
be expected not to have, a Material Adverse Effect.

                  (i) Compliance with Applicable Laws.

                           (i) The Partnership and each of the Partnership
                  Subsidiaries holds all permits, licenses, variances,
                  exemptions, orders, approvals and similar authorizations of
                  all Governmental Authorities necessary or appropriate for the
                  lawful operation of its respective business, except for such
                  permits, licenses, variances, exemptions, orders, approvals
                  and similar authorizations the failure of which to hold, alone
                  or in the aggregate, have not had, or could reasonably be
                  expected not to have a Material Adverse Effect (the
                  "Permits"). Except as disclosed in the SEC Reports or on
                  Schedule 4(i), (A) the Partnership and each of the Partnership
                  Subsidiaries is in compliance in all material respects with
                  the

                                       12
<PAGE>
                  terms of the Permits, and (B) neither the Partnership nor any
                  Partnership Subsidiary has received any written notice from
                  any Person that the businesses of the Partnership and the
                  Partnership Subsidiaries are being conducted in violation of
                  any law, ordinance or regulation of any Governmental
                  Authority, except for possible violations which alone or in
                  the aggregate have not had, or could reasonably be expected
                  not to have, a Material Adverse Effect.

                           (ii) None of the Partnership or any of the
                  Partnership Subsidiaries is a "public utility company,"
                  "holding company" or "subsidiary" or "affiliate" of a holding
                  company as such terms are defined in the Public Utility
                  Holding Company Act of 1935, as amended.

                           (iii) None of the Partnership or any of the
                  Partnership Subsidiaries is an "investment company" or a
                  company "controlled by" an "investment company" within the
                  meaning of the Investment Company Act of 1940, as amended.

                  (j) Taxes. Except as otherwise disclosed on Schedule 4(j) or
for matters that do not have, or could reasonably be expected not to have, a
Material Adverse Effect:

                           (i) Each of the Partnership and the Partnership
                  Subsidiaries has filed (or has had timely filed on its behalf)
                  all Tax Returns required to be filed by any of them and has
                  paid (or has had paid on its behalf), or has set up an
                  adequate reserve for the payment of, all Taxes required to be
                  paid by any of them. The information contained in such Tax
                  Returns is true, complete and accurate in all respects. No
                  such Tax Return is now under audit or examination by any
                  Governmental Authority. Neither the Partnership nor any
                  Partnership Subsidiary has engaged in a transaction that would
                  be treated as a "reportable transaction" within the meaning of
                  Treasury Regulation Section 1.6011-4 or any predecessor
                  regulation. No claim has ever been made by an authority in a
                  jurisdiction where any of the Partnership and the Partnership
                  Subsidiaries does not file Tax Returns that it is or may be
                  subject to Tax in that jurisdiction. Neither the Partnership
                  nor any Partnership Subsidiary is delinquent in the payment of
                  any Tax. No deficiencies for any Taxes have been proposed,
                  asserted or assessed against the Partnership or any
                  Partnership Subsidiary that have not been finally settled or
                  paid in full, and no requests for waivers of the time to
                  assess any such Tax are pending. There are no liens for Taxes
                  upon the assets of the Partnership or the Partnership
                  Subsidiaries, except for liens for current Taxes not yet due.
                  Each of the Partnership and the Partnership Subsidiaries has
                  withheld and paid all Taxes required to be withheld and paid
                  and has complied with all information and backup withholding
                  requirements, including maintaining all necessary records in
                  connection with amounts paid or owing to any employee,
                  creditor, independent contractor or other third party.

                           (ii) The Partnership and the Partnership Subsidiaries
                  do not have, in total, liabilities of more than $5.8 million
                  for the Taxes of any Person other than the Partnership and the
                  Partnership Subsidiaries (A) as a transferee or successor,

                                       13
<PAGE>

                  (B) by contract, (C) pursuant to Treasury Regulation Section
                  1.1502-6 (or any similar provision of state, local or foreign
                  law), or (D) otherwise.

                  (k) Contracts and Commitments. Schedule 4(k) includes a list
of each contract and agreement (collectively, the "Partnership Contracts") to
which the Partnership or any Partnership Subsidiary is subject that was required
to be included as an exhibit to a Partnership Annual Report on Form 10-K for the
year ended December 31, 2002 and Partnership Quarterly Reports on Form 10-Q for
quarterly periods ending in 2003 pursuant to the rules and regulations of the
SEC, and, except as set forth in the SEC Reports or on Schedule 4(k)(i), each
Partnership Contract is in full force and effect, except where the failure to be
in full force and effect has not had, or could reasonably be expected not to
have a Material Adverse Effect. Except as set forth in the SEC Reports or on
Schedule 4(k)(ii), the Partnership and the Partnership Subsidiaries have
performed all material obligations required to be performed by it to date under
the Partnership Contracts, and none of them is in default under any material
obligation of any such contract, except where such default has not had, or could
reasonably be expected not to have a Material Adverse Effect, and, to the
Partnership's Knowledge, no other party to any Partnership Contract is in
default thereunder.

                  (l) Environmental Matters. Except as relates to those matters
identified in the SEC Reports or on Schedule 4(l) and for any violations of
these representations that, individually or in the aggregate, have not had, or
could reasonably be expected not to have, a Material Adverse Effect:

                           (i) The operations, real properties, and assets of
                  the Partnership and each of the Partnership Subsidiaries and
                  their respective predecessors have been and currently are in
                  compliance with all Environmental Laws;

                           (ii) All permits, registrations, licenses, notices,
                  reportings, consents, exemptions, authorizations, and similar
                  approvals required under Environmental Laws for conducting the
                  operations of the Partnership and each of the Partnership
                  Subsidiaries and their respective predecessors as they have
                  been and are currently being conducted have been obtained and
                  all such currently held permits, registrations, licenses,
                  notices, reportings, consents, exemptions, authorizations, and
                  similar approvals are in full force and effect with neither
                  the Partnership nor any of the Partnership Subsidiaries having
                  received any notice that any Governmental Authority intends to
                  cancel, terminate, or not renew any such current permits,
                  registrations, licenses, notices, reportings, consents,
                  exemptions, authorizations, and similar approvals;

                           (iii) None of the operations, real properties, or
                  assets of the Partnership or any of the Partnership
                  Subsidiaries are subject to any existing, pending or
                  threatened claims, actions, suits, investigations, inquiries
                  or proceedings under Environmental Laws, and neither the
                  Partnership nor any of the Partnership Subsidiaries has
                  received any written notice of alleged violations under
                  Environmental Laws with respect to such operations, real
                  properties, or assets;

                                       14
<PAGE>

                           (iv) There has been no Releases or, to the
                  Partnership's Knowledge, threatened Releases of Hazardous
                  Materials on, under, from, or about the Partnership's or any
                  of the Partnership Subsidiaries' respective real properties or
                  assets, and there are no investigations, remediations, or
                  monitorings of Hazardous Materials required under
                  Environmental Law at any on-site or, to the Partnership's
                  Knowledge, offsite locations resulting from or arising out of
                  the Partnership's or any of the Partnership Subsidiaries'
                  respective operations;

                           (v) None of the real property included in the
                  operations or assets of the Partnership or any of the
                  Partnership Subsidiaries is on the National Priorities List
                  ("NPL") or Comprehensive Environmental Response, Compensation,
                  and Liability Information System ("CERCLIS") list;

                           (vi) There has not been exposure of persons to a
                  Release or, to the Partnership's Knowledge, threatened Release
                  of Hazardous Materials in connection with the operations of
                  the Partnership or any of the Partnership Subsidiaries that
                  could reasonably be expected to lead to tort claims by third
                  parties for damages or compensation; and

                           (vii) There are no underground storage tanks that are
                  currently or were formerly owned or operated by the
                  Partnership or any of the Partnership Subsidiaries or their
                  predecessors on any real properties included in the current
                  assets or operations of the Partnership or any of the
                  Partnership Subsidiaries.

                  (m) Employees; Employee Plans.

                           (i) Neither the Partnership nor any of its ERISA
                  Affiliates currently has or, during the past three years, has
                  had any employees.

                           (ii) Neither the Partnership nor any of its ERISA
                  Affiliates sponsors, maintains or contributes to or has an
                  obligation (secondary, contingent or otherwise) to contribute
                  to, or has sponsored, maintained or contributed to or has had
                  an obligation to contribute to, any "employee benefit plan,"
                  as defined under Section 3(3) of the Employee Retirement
                  Income Security Act of 1974, as amended ("ERISA").

                           (iii) As of the date hereof, neither the Partnership
                  nor any of its ERISA Affiliates has any direct or indirect
                  liability, including secondary liability, arising under, based
                  upon or related to Title IV of ERISA with respect to any plan,
                  including any liability under Section 302 of ERISA or Section
                  412 of the Code and there is no event that has occurred that,
                  with notice, lapse of time or otherwise, the Partnership
                  reasonably expects to result in such liability.

                  (n) Fairness Opinion; Special Committee Approval.

                           (i) The Partnership has received the Fairness Opinion
                  and provided a true and correct copy of the Fairness Opinion
                  to the Investor.

                                       15
<PAGE>

                           (ii) The transactions contemplated by the Exchange
                  Agreement and the transactions related to the redemption by
                  the Partnership of its Series B Preference Units from an
                  Affiliate of EP have been approved by at least a majority of
                  the directors of the Audits and Conflicts Committee of the
                  General Partner.

                  (o) Intellectual Property. Each of the Partnership and the
Partnership Subsidiaries own, or have obtained valid and enforceable licenses
for, or other rights to use, the inventions, patents, trademarks, tradenames,
copyrights, trade secrets and other proprietary information (collectively,
"Intellectual Property") necessary for the conduct of their respective
businesses, except where the failure to own, license or have such rights has not
had, or could reasonably be expected not to have, a Material Adverse Effect.
None of the Partnership or any Partnership Subsidiary has Knowledge of any
infringement of or conflict with asserted rights of others with respect to any
Intellectual Property or of any facts or circumstances which would render any
Intellectual Property invalid or inadequate to protect the interest of any of
the Partnership or the Partnership Subsidiaries, except for any that has not
had, or could reasonably be expected not to have, a Material Adverse Effect.

                  (p) No Default. None of the Partnership, or any of the
Partnership Subsidiaries is in violation or default of (i) any Organizational
Document, or (ii) the terms of any indenture, contract, lease, mortgage, deed of
trust, note agreement, loan agreement or any other agreement, obligation,
condition, covenant or instrument to which it is a party or bound or to which
its property is subject, in the case of (i) and (ii), other than breaches or
violations that have not had, or could reasonably be expected not to have, a
Material Adverse Effect.

                  (q) Independent Accountants. PricewaterhouseCoopers, LLP, who
have certified certain financial statements of each of the Partnership and the
Partnership Subsidiaries contained in the SEC Reports are independent public
accountants as required by the Securities Act and the applicable published rules
and regulations thereunder.

                  (r) Broker's Fees. The Partnership has no liability or
obligation to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement for which the
Investor could become, liable or obligated.

                  (s) GP Capital Account. The General Partner has a balance in
its capital account in the Partnership equal to 1.00% of the total positive
capital account balances of all of the partners in the Partnership.

                  (t) NYSE Listing. The New York Stock Exchange has approved the
listing of the Subject Units on the New York Stock Exchange.

                                       16
<PAGE>

         5. Remedies for Breaches of this Agreement.

                  (a) Survival of Representations and Warranties. (i) All of the
representations and warranties of the Partnership contained in Sections 4(a),
4(b) and 4(r) shall survive the Closing hereunder until the earlier of (A) the
date that is 5 years after the Closing Date and (B) the later of (x) 24 months
after the Closing Date and (y) the date on which the Exchange Period ends, (ii)
all of the representations and warranties contained in Section 4(j) shall
survive until 30 days after the expiration of the applicable statute of
limitations; (iii) all of the representations and warranties contained in
Section 4(l) shall survive the Closing for a period of 30 months after the
Closing Date; and (iv) the representations and warranties of the Partnership
contained in Section 4 (other than Sections 4(a), 4(b), 4(j), 4(l) and 4(r))
shall survive the Closing for a period of 18 months after the Closing Date. The
representations and warranties of the Investor contained in Section 3 shall
survive the Closing for a period of 18 months after the Closing Date. The
covenants and obligations contained in Section 2 and all other covenants and
obligations contained in this Agreement shall survive the Closing without
limitation.

                  (b) Indemnification Provisions for Benefit of the Investor.

                           (i) Representations and Warranties. In the event: (x)
                  any of the representations or warranties of the Partnership is
                  breached; (y) there is an applicable survival period pursuant
                  to Section 5(a); and (z) the Investor makes a written claim
                  for indemnification against the Partnership pursuant to
                  Section 7(e) within such survival period, then the Partnership
                  agrees to release, indemnify and hold harmless the Investor
                  Indemnitees from and against any Adverse Consequences suffered
                  by the Investor Indemnitees by reason of all such breaches;
                  provided, that the Partnership shall not have any obligation
                  to indemnify any Investor Indemnitees from and against any
                  such Adverse Consequences to the extent the Adverse
                  Consequences the Investor Indemnitees, in the aggregate, have
                  suffered by reason of all such breaches exceeds an aggregate
                  ceiling amount equal to 100% of the Purchase Price (after
                  which point the Partnership shall have no obligation to
                  indemnify the Investor Indemnitees from and against further
                  such Adverse Consequences). Any due diligence or other
                  investigation by or on behalf of the Investor shall not affect
                  its reliance or right to rely on any representation or
                  warranty made by the Partnership in this Agreement.

                           (ii) Covenants and Obligations. In the event: (x) any
                  of the covenants or obligations of the Partnership in Section
                  2 or any other covenants or obligations of the Partnership in
                  this Agreement are breached; and (y) the Investor makes a
                  written claim for indemnification against the Partnership
                  pursuant to Section 7(e), then the Partnership agrees to
                  release, indemnify and hold harmless the Investor Indemnitees
                  from and against any Adverse Consequences suffered by the
                  Investor Indemnitees.

                                       17
<PAGE>

                  (c) Indemnification Provisions for Benefit of the Partnership.

                           (i) Representations and Warranties. In the event: (x)
                  any of the representations or warranties of the Investor is
                  breached; (y) there is an applicable survival period pursuant
                  to Section 5(a); and (z) the Partnership makes a written claim
                  for indemnification against the Investor pursuant to Section
                  7(e) within such survival period, then the Investor agrees to
                  release, indemnify and hold harmless the Partnership
                  Indemnitees from and against any Adverse Consequences suffered
                  by such Partnership Indemnitees by reason of all such
                  breaches.

                           (ii) Covenants and Obligations. In the event: (x) any
                  of the covenants or obligations of the Investor in Section 2
                  or any other covenants or obligations of the Investor in this
                  Agreement are breached and (y) the Partnership makes a written
                  claim for indemnification against the Investor pursuant to
                  Section 7(e) within such survival period, then the Investor
                  agrees to release, indemnify and hold harmless the Partnership
                  Indemnitees from and against any Adverse Consequences suffered
                  by the Partnership Indemnitees.

                  (d) Matters Involving Third Parties.

                           (i) If any third party shall notify any Party (the
                  "Indemnified Party") with respect to any matter (a "Third
                  Party Claim") that may give rise to a claim for
                  indemnification against any other Party (the "Indemnifying
                  Party") under this Section 5, then the Indemnified Party shall
                  promptly notify the Indemnifying Party thereof in writing.
                  Failure to give prompt notice of a Third Party Claim hereunder
                  shall not affect the Indemnifying Party's obligations, except
                  to the extent that the Indemnifying Party is materially
                  prejudiced by such failure to give prompt notice.

                           (ii) The Indemnifying Party shall have the right to
                  assume and thereafter conduct the defense of the Third Party
                  Claim with counsel of its choice reasonably satisfactory to
                  the Indemnified Party; provided, however, that the Indemnified
                  Party shall have the right to participate in any matter
                  through counsel of its own choosing at its own expense;
                  provided further, however, that the Indemnifying Party shall
                  pay the fees and expenses of separate counsel for the
                  Indemnified Party if (A) the Indemnifying Party has agreed to
                  pay such fees and expenses or (B) the named parties to any
                  such action or proceeding (including any impleaded parties)
                  include both the Indemnified Party and the Indemnifying Party,
                  and such Indemnified Party shall have been advised by counsel
                  that the representation of both parties would be inappropriate
                  due to actual or potential differing interests between them.

                           (iii) The Indemnifying Party shall not consent to the
                  entry of any judgment or enter into any settlement with
                  respect to the Third Party Claim without the prior written
                  consent of the Indemnified Party (not to be withheld
                  unreasonably) unless the judgment or proposed settlement
                  involves only the

                                       18
<PAGE>

                  payment of money damages and does not impose an injunction or
                  other equitable relief upon the Indemnified Party.

                           (iv) Unless and until the Indemnifying Party assumes
                  the defense of the Third Party Claim as provided in Section
                  5(d)(ii), the Indemnified Party may defend against the Third
                  Party Claim in any manner it reasonably may deem appropriate.

                           (v) In no event shall the Indemnified Party consent
                  to the entry of any judgment or enter into any settlement with
                  respect to the Third Party Claim without the prior written
                  consent of the Indemnifying Party which consent shall not be
                  withheld or delayed unreasonably.

                  (e) Determination of Amount of Adverse Consequences. The
Adverse Consequences giving rise to any indemnification obligation hereunder
shall be limited to the actual loss suffered by the Indemnified Party (i.e.
reduced by any insurance proceeds or other payment or recoupment received,
realized or retained by the Indemnified Party as a result of the events giving
rise to the claim for indemnification net of any expenses related to the receipt
of such proceeds, payment or recoupment, including retrospective premium
adjustments, if any), but not reduced by any reduction in Taxes of the
Indemnified Party (or the affiliated group of which it is a member) occasioned
by such loss or damage. The amount of the actual loss and the amount of the
indemnity payment shall be computed by taking into account the timing of the
loss or payment, as applicable, using a 10% interest or discount rate, as
appropriate. Upon the request of the Indemnifying Party, the Indemnified Party
shall provide the Indemnifying Party with information sufficient to allow the
Indemnifying Party to calculate the amount of the indemnity payment in
accordance with this Section 5(e).

                  (f) Compliance with Express Negligence Rule. ALL RELEASES,
DISCLAIMERS, LIMITATIONS ON LIABILITY AND INDEMNITIES IN THIS AGREEMENT,
INCLUDING THOSE IN THIS SECTION 5, SHALL APPLY EVEN IN THE EVENT OF THE SOLE,
JOINT AND/OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF THE PARTY
WHOSE LIABILITY IS RELEASED, DISCLAIMED, LIMITED OR INDEMNIFIED.

                  (g) Tax Treatment of Indemnity Payments. All indemnification
payments made under this Agreement, including any payment made under Section 5,
shall be made in cash and treated as purchase price adjustments for Tax
purposes.

                                       19
<PAGE>

         6. [Intentionally Omitted].

         7. Miscellaneous.

                  (a) Confidentiality, Press Releases and Public Announcements.
Prior to Closing, the Parties shall keep all information regarding the terms and
conditions of the Transaction Agreements and the transactions related thereto
secret and confidential, except (i) for any disclosures made by the Parties and
their respective Affiliates and representatives, (ii) pursuant to a mutual
agreement between the Parties, or (iii) if required by Law, including Laws
promulgated by the SEC, or applicable stock exchange rule, including rules of
the New York Stock Exchange. Notwithstanding anything to the contrary in this
Agreement (or any other agreement executed in connection therewith), the Parties
(and each employee, representative or other agent of the Parties) may disclose
to any and all persons, without limitation of any kind, the U.S. federal income
Tax treatment and Tax structure of the transactions contemplated herein and all
materials of any kind (including opinions and other Tax analyses) that are
provided to the Parties relating to such Tax treatment and Tax structure. For
this purpose, "Tax structure" is limited to facts relevant to the U.S. federal
income Tax treatment of such transactions and does not include information
relating to the identity of the Parties, its Affiliates, agents or advisors.
Moreover, notwithstanding any other provision of this Agreement (or any other
agreement executed in connection therewith), there shall be no limitation on a
Party's ability to consult any Tax adviser, whether or not independent from such
Party or its Affiliates, regarding the Tax treatment or Tax structure of the
transactions contemplated by this Agreement.

                  (b) No Third Party Beneficiaries. This Agreement shall not
confer any rights or remedies upon any Person other than the Parties and their
respective successors and permitted assigns.

                  (c) Succession and Assignment. This Agreement shall be binding
upon and inure to the benefit of the Parties named herein and their respective
successors and assigns. Except as expressly provided in the following sentence,
neither Party may assign, transfer or otherwise alienate either this Agreement
or any of its rights, interests or obligations hereunder without the prior
written approval of the other Party. Notwithstanding the immediately preceding
sentence, either Party may assign all or any portion of its rights or interests
(but not its obligations) under this Agreement without the consent of the other
Party (i) in connection with the granting by such Party of a lien in a bona fide
lending transaction, (ii) in any foreclosure or similar proceeding or (iii) as
part of a settlement in any foreclosure or similar proceeding.

                  (d) Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original but which together shall
constitute one and the same instrument.

                  (e) Notices. All notices, requests, demands, claims, and other
communications hereunder shall be in writing. Any notice, request, demand,
claim, or other communication hereunder shall be deemed duly given two business
days after it is sent by registered or certified mail, return receipt requested,
postage prepaid, and addressed to the intended recipient as set forth below:

                                       20
<PAGE>

         If to the Partnership:   GulfTerra Energy Partners, L.P.
                                  Attn: President
                                  Four Greenway Plaza
                                  Houston, Texas 77046
                                  (713) 420-2131

         With a copy to:          Akin Gump Strauss Hauer & Feld, LLP
                                  711 Louisiana Street - South Tower, Suite 1900
                                  Houston, Texas 77002
                                  (713) 220-5800
                                  Attn: J. Vincent Kendrick

         If to the Investor:      Goldman Sachs & Co.
                                  1 New York Plaza
                                  48th Floor
                                  New York, New York 10004
                                  Attn: Raanan Agus
                                  Phone: (212) 902-3177
                                  Fax: (212) 346-3124

         With a copy to:          General Counsel
                                  Fax: (212) 902-346-3142

         With a copy to:          Vinson & Elkins L.L.P.
                                  666 Fifth Avenue
                                  26th Floor
                                  New York, New York 10103
                                  Facsimile: (917) 206 8100
                                  Attention: Mike Rosenwasser

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the addresses set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, ordinary mail, or electronic mail), but no such notice, request,
demand, claim, or other communication shall be deemed to have been duly given
unless and until it actually is received by the intended recipient. Any Party
may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Party notice in
the manner herein set forth.

                  (f) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK WITHOUT
GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE
STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF
THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

                                       21
<PAGE>

                  (g) Remedy and Waiver. From and after the Closing, the sole
remedy of a Party in connection with (i) a breach or inaccuracy of the
representations, or breach of warranties, in this Agreement or any certificate
or other document delivered pursuant to this Agreement at Closing, or (ii) any
failure by a Party to perform or observe any term, provision, covenant or
agreement on the part of such Party to be performed or observed under this
Agreement, shall, in each case, be the rights of such Party under Section 5
hereof to indemnification and to being released and held harmless, and, as a
result, each Party hereby waives any claim or cause of action pursuant to common
or statutory law or otherwise (except for fraud) against the other Party arising
from any breach or failure described in (i) or (ii) above. Except for the
representations, warranties and remedies expressly provided for by this
Agreement, the Investor agrees that the Partnership and its Affiliates and
representatives have not made any representation or warranty, and the
Partnership is relying on no other representation, warranty or remedy (under
contract or law).

                  (h) Further Assurances. In case at any time after the Closing
any further action is necessary to carry out the purposes of this Agreement,
each of the Parties shall take such further action (including the execution and
delivery of such further instruments and documents) as the other Party
reasonably may request, all at the sole cost and expense of the requesting Party
(unless the requesting Party is entitled to indemnification therefor under
Section 5).

                  (i) Amendments and Waivers. No amendment of any provision of
this Agreement shall be valid unless the same shall be in writing and signed by
the Investor and the Partnership. No waiver by any Party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

                  (j) Severability. Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

                  (k) Transaction Expenses. Each of the Investor and the
Partnership shall bear its own costs and expenses (including legal fees and
expenses) incurred in connection with this Agreement and the transactions
contemplated hereby.

                                       22
<PAGE>

                  (l) Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise favoring or disfavoring any Party by virtue of the authorship of any of
the provisions of this Agreement. The Section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement. Any reference to any federal,
state, local, or foreign statute or Law shall be deemed also to refer to all
rules and regulations promulgated thereunder, unless the context requires
otherwise, and shall include any amendment to such Law now or hereinafter in
effect, unless otherwise expressly set forth herein. The word "including" shall
mean including without limitation. All personal pronouns used in this Agreement,
whether used in the masculine, feminine or neuter gender, shall include all
other genders; the singular shall include the plural, and vice versa. All
references herein to Exhibits, Schedules, Articles, Sections or subdivisions
thereof shall refer to the corresponding Exhibits, Schedules, Article, Section
or subdivision thereof of this Agreement unless specific reference is made to
such exhibits, articles, sections or subdivisions of another document or
instrument. Any disclosure made on any Schedule to this Agreement will be
considered disclosed on all applicable Schedules to this Agreement. Unless
otherwise provided, any reference to any Person in this Agreement shall include
such Person's successors and assigns. The terms "will" and "shall" shall be
interpreted to have the same meaning. The terms "herein," "hereby," "hereunder,"
"hereof," "hereinafter," and other equivalent words refer to this Agreement in
its entirety and not solely to the particular portion of the Agreement in which
such word is used. Each certificate delivered pursuant to this Agreement shall
be deemed a part hereof, and any representation, warranty or covenant herein
referenced or affirmed in such certificate shall be treated as a representation,
warranty or covenant given in the correlated Section hereof on the date of such
certificate. Additionally, any representation, warranty or covenant made in any
such certificate shall be deemed to be made herein.

                  (m) Incorporation of Exhibits and Schedules. The Exhibits and
Schedules identified in or otherwise attached to this Agreement are incorporated
herein by reference and made a part hereof.

                  (n) Entire Agreement. THIS AGREEMENT (INCLUDING THE DOCUMENTS
REFERRED TO HEREIN) CONSTITUTES THE ENTIRE AGREEMENT AMONG THE PARTIES AND
SUPERSEDES ANY PRIOR UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS BY OR AMONG
THE PARTIES, WRITTEN OR ORAL, TO THE EXTENT THEY HAVE RELATED IN ANY WAY TO THE
SUBJECT MATTER HEREOF.

                                      *****

                                       23
<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date first set forth in the preamble.

                                            GULFTERRA ENERGY PARTNERS, L.P.

                                            By: /s/ James H. Lytal
                                                --------------------------------

                                            Name: James H. Lytal
                                                  ------------------------------

                                            Title: President
                                                   -----------------------------

                                            GOLDMAN SACHS & CO.

                                            By: /s/ Raanan Agus
                                                --------------------------------

                                            Name: Raanan Agus
                                                  ------------------------------

                                            Title: Managing Director
                                                   -----------------------------

            PURCHASE AND SALE AGREEMENT (COMMON UNITS) SIGNATURE PAGE

<PAGE>
Purchase and Sale Agreement (the "Purchase Agreement") dated October 2, 2003, by
and between GulfTerra Energy Partners, L.P., a Delaware limited partnership (the
"Partnership"), and Goldman Sachs & Co, a New York Limited Partnership, covering
the acquisition of 3,000,000 Series A Common Units from the Partnership.

                                          EXHIBITS AND SCHEDULES
                                          ----------------------

Exhibit A:                          Form of Exchange Agreement
Exhibit B:                          Form of Reduction Agreement

Schedule 1(a):                      Knowledge (Partnership)
Schedule 3(b):                      Consents (Investor)
Schedule 4(b):                      Consents (Partnership)
Schedule 4(d):                      Capitalization
Schedule 4(f):                      Adequacy of Assets
Schedule 4(h):                      Litigation
Schedule 4(i):                      Compliance with Applicable Laws
Schedule 4(j):                      Taxes
Schedule 4(k):                      Contracts and Commitments
Schedule 4(k)(i):                   Full Force and Effect
Schedule 4(k)(ii):                  Defaults
Schedule 4(l):                      Environmental Laws

<PAGE>

                                  EXHIBIT A TO
                           PURCHASE AND SALE AGREEMENT

                           FORM OF EXCHANGE AGREEMENT

                                   (attached).

<PAGE>

                                  EXHIBIT B TO
                           PURCHASE AND SALE AGREEMENT

                           FORM OF REDUCTION AGREEMENT

                                   (attached).

<PAGE>

                                SCHEDULE 1(A) TO
                           PURCHASE AND SALE AGREEMENT

                             KNOWLEDGE (PARTNERSHIP)

1.       Bob Phillips, Chairman and Chief Executive Officer of the Partnership.

2.       D. Mark Leland, Senior Vice President and Chief Operating Officer of
         the Partnership.

3.       Keith Forman, Vice President and Chief Financial Officer of the
         Partnership.

4.       Greg Jones, Vice President and General Counsel of the Partnership.

5.       Kathy Welch, Vice President and Chief Accounting Officer of the
         Partnership.

6.       Marcus Rex Ferries, Director, Environmental Remediation.

7.       Robert Proffit, Vice President of the Partnership.

<PAGE>

                                SCHEDULE 3(B) TO
                           PURCHASE AND SALE AGREEMENT

                               CONSENTS (INVESTOR)

None.

<PAGE>

                                SCHEDULE 4(B) TO
                           PURCHASE AND SALE AGREEMENT

                             CONSENTS (PARTNERSHIP)

None.

<PAGE>

                                SCHEDULE 4(D) TO
                           PURCHASE AND SALE AGREEMENT

                                 CAPITALIZATION

As provided in the Partnership Agreement, the Series C Units of the Partnership
can be redeemed, under certain circumstances, into Series A Common Units.

<PAGE>

                                SCHEDULE 4(F) TO
                           PURCHASE AND SALE AGREEMENT

                               ADEQUACY OF ASSETS

None.

<PAGE>

                                SCHEDULE 4(H) TO
                           PURCHASE AND SALE AGREEMENT

                                   LITIGATION

None.

<PAGE>

                                SCHEDULE 4(I) TO
                           PURCHASE AND SALE AGREEMENT

                         COMPLIANCE WITH APPLICABLE LAWS

None.

<PAGE>

                                SCHEDULE 4(J) TO
                           PURCHASE AND SALE AGREEMENT

                                      TAXES

None.

<PAGE>

                                SCHEDULE 4(K) TO
                           PURCHASE AND SALE AGREEMENT

                            CONTRACTS AND COMMITMENTS

1.       Indenture dated as of May 27, 1999 among GulfTerra Energy Partners,
         L.P., GulfTerra Energy Finance Corporation, the Subsidiary Guarantors
         named therein and Chase Bank of Texas, as Trustee; First Supplemental
         Indenture dated as of June 30, 1999; Second Supplemental Indenture
         dated as of July 27, 1999; Third Supplemental Indenture dated as of
         March 21, 2000; Fourth Supplemental Indenture dated as of July 11,
         2000; Fifth Supplemental Indenture dated as of August 30, 2000; Sixth
         Supplemental Indenture dated as of April 18, 2002; Seventh Supplemental
         Indenture dated as of April 18, 2002; Eighth Supplemental Indenture
         dated as of October 10, 2002; Ninth Supplemental Indenture dated as of
         November 27, 2002; Tenth Supplemental Indenture dated as of January 1,
         2003; Eleventh Supplemental Indenture dated as of June 20, 2003.

2.       Indenture dated as of May 11, 2000 among GulfTerra Energy Partners,
         L.P., GulfTerra Energy Finance Corporation, The Subsidiary Guarantors
         named therein and The Chase Manhattan Bank, as Trustee; First
         Supplemental Indenture dated as of April 18, 2002; Second Supplemental
         Indenture dated as of April 18, 2002; Third Supplemental Indenture
         dated as of October 10, 2002; Fourth Supplemental Indenture dated as of
         November 27, 2002; Fifth Supplemental Indenture dated as of January 1,
         2003; Sixth Supplemental Indenture dated as of June 20, 2003.

3.       Letter agreement dated March 5, 2002, between Crystal Gas Storage, Inc.
         and GulfTerra Energy Partners, L.P.

4.       Registration Rights Agreement by and between El Paso Corporation and
         GulfTerra Energy Partners, L.P. dated as of November 27, 2002.

5.       Indenture dated as of November 27, 2002 by and among GulfTerra Energy
         Partners, L.P., GulfTerra Energy Finance Corporation, the Subsidiary
         Guarantors named therein and JPMorgan Chase Bank, as Trustee; First
         Supplemental Indenture dated as of January 1, 2003; Second Supplemental
         Indenture dated as of June 20, 2003.

6.       A/B Exchange Registration Rights Agreement by and among GulfTerra
         Energy Partners, L.P., GulfTerra Energy Finance Corporation, the
         Subsidiary Guarantors party thereto, J.P. Morgan Securities, Inc.,
         Goldman Sachs & Co., UBS Warburg LLC and Wachovia Securities, Inc.
         dated as of March 24, 2003.

7.       Indenture dated as of March 24, 2003 by and among GulfTerra Energy
         Partners, L.P., GulfTerra Energy Finance Corporation, the Subsidiary
         Guarantors named therein and JPMorgan Chase Bank, as Trustee dated as
         of March 24, 2003; First Supplemental Indenture dated as of June 20,
         2003.

<PAGE>
8.       Indenture dated as of July 3, 2003, by and among GulfTerra Energy
         Partners, L.P., GulfTerra Energy Finance Corporation, the Subsidiary
         Guarantors named therein and Wells Fargo Bank, National Association, as
         Trustee.

9.       A/B Exchange Registration Rights Agreement dated as of July 3, 2003, by
         and among GulfTerra Energy Partners, L.P., GulfTerra Energy Finance
         Corporation, the Subsidiary Guarantors named therein, J.P. Morgan
         Securities Inc., Banc One Capital Markets, Inc., BNP Paribas Securities
         Corp., Credit Lyonnais Securities (USA) Inc., Credit Suisse First
         Boston LLC, Fortis Investment Services LLC, The Royal Bank of Scotland
         plc, Scotia Capital (USA) Inc., SunTrust Capital Markets, Inc. and
         Wachovia Securities, LLC.

10.      General and Administrative Services Agreement by and between DeepTech
         International Inc., GulfTerra Energy Company, L.L.C. and El Paso Field
         Services, L.P. dated as of May 5, 2003.

11.      Seventh Amended and Restated Credit Agreement dated as of March 23,
         1995, as amended and restated through September 25, 2003, among
         GulfTerra Energy Partners, L.P., GulfTerra Energy Finance Corporation,
         the several lenders from time to time parties thereto, Fortis Capital
         Corp., as Syndication Agent, Credit Lyonnais New York Branch, BNP
         Paribas and Wachovia Bank, National Association, as Co-Documentation
         Agents, and JPMorgan Chase Bank, as Administrative Agent

12.      Limited Liability Company Agreement for Poseidon Oil Pipeline Company,
         L.L.C. dated February 14, 1996; First Amendment to the Limited
         Liability Company Agreement for Poseidon Oil Pipeline Company, L.L.C.
         dated February 14, 1996.

13.      Purchase and Sale Agreement dated as of September 27, 2001 by and
         between American Natural Offshore Company, Texas Offshore Pipeline
         System, Inc., Unitex Offshore Transmission Company and ANR Western Gulf
         Holdings, L.L.C. as Sellers and El Paso Energy Partners Deepwater,
         L.L.C., as Buyer

14.      1998 Unit Option Plan for Non-Employee Directors Amended and Restated
         effective as of April 18, 2001; Amendment No. 1 effective as of May 15,
         2003.

15.      1998 Omnibus Compensation Plan, Amended and Restated, effective as of
         January 1, 1999; Amendment No. 1 dated as of December 1, 1999;
         Amendment No. 2 dated as of May 15, 2003.

16.      Purchase, Sale and Merger Agreement by and between El Paso Tennessee
         Pipeline Co. and GulfTerra Energy Partners, L.P., dated as of April 1,
         2002.

17.      Contribution Agreement by and between El Paso Field Services Holding
         Company and GulfTerra Energy Partners, L.P. dated as of April 1, 2002

18.      Purchase and Sale Agreement by and between GulfTerra Energy Partners,
         L.P. and El Paso Production GOM Inc. dated as of April 1, 2002.

<PAGE>

19.      Letter Agreement by and among GulfTerra Energy Partners, L.P.,
         GulfTerra Energy Finance Corporation, the Subsidiary Guarantors party
         thereto, JPMorgan Chase Bank, Goldman Sachs Credit Partners L.P., UBS
         AG, Stamford Branch and Wachovia Bank, National Association dated
         November 27, 2002.

20.      Contribution, Purchase and Sale Agreement by and between El Paso
         Corporation and GulfTerra Energy Partners, L.P. dated November 21,
         2002.

21.      Second Amended and Restated Agreement of Limited Partnership of
         GulfTerra Energy Partners, L.P., a Delaware limited partnership,
         effective as of August 31, 2003, First Amendment dated November 27,
         2003; Second Amendment dated May 5, 2003; Third Amendment dated May 16,
         2003; Fourth Amendment dated July 23, 2003; Fifth Amendment dated
         August 21, 2003.

22.      The Participation Agreement and Assignment relating to Cameron Highway
         Oil Pipeline Company dated July 10, 2003.

23.      Registration Rights Agreement dated as of August 28, 2000 by and
         between Crystal Gas Storage, Inc. and GulfTerra Energy Partners, L.P.

24.      A/B Exchange Registration Rights Agreement dated as of May 17, 2002, by
         and among GulfTerra Energy Partners, L.P., GulfTerra Energy Finance
         Corporation, the Subsidiary Guarantors party thereto, Credit Suisse
         First Boston Corporation, Goldman, Sachs & Co., J.P. Morgan Securities
         Inc., Banc One Capital Markets, Inc., Fleet Securities, Inc., Fortis
         Investment Services L.L.C., The Royal Bank of Scotland plc, BNP
         Securities Corp. and First Union Securities, Inc.

25.      A/B Exchange Registration Rights Agreement by and among GulfTerra
         Energy Partners, L.P., GulfTerra Energy Finance Corporation, the
         Subsidiary Guarantors party thereto, J.P. Morgan Securities Inc.,
         Goldman, Sachs & Co., UBS Warburg LLC and Wachovia Securities, Inc.
         dated as of November 27, 2002

26.      Amended and Restated General and Administrative Services Agreement by
         and between DeepTech International Inc., El Paso Energy Partners
         Company and El Paso Field Services, L.P. dated November 27, 2002.

27.      Sixth Amended and Restated Credit Agreement dated as of March 23, 1995,
         as amended and restated through October 10, 2002 by and among El Paso
         Energy Partners, L.P., El Paso Energy Partners Finance Corporation,
         Credit Lyonnais New York Branch and First Union National Bank, as
         Co-Syndication Agents, Fleet National Bank and Fortis Capital Corp., as
         Co-Documentation Agents, The Chase Manhattan Bank, as Administrative
         Agent, and the several banks and other financial institutions
         signatories thereto; First Amendment dated as of November 21, 2002.

28.      Amended and Restated Credit Agreement among EPN Holding Company, L.P.,
         the

<PAGE>

         Lenders party thereto, Banc One Capital Markets, Inc. and Wachovia
         Bank, N.A., as Co-Syndication Agents, Fleet National Bank and Fortis
         Capital Corp., as Co-Documentation Agents, and JPMorgan Chase Bank, as
         Administrative Agent, dated as of April 8, 2002; First Amendment dated
         as of November 21, 2002.

29.      Senior Secured Acquisition Term Loan Credit Agreement dated as of
         November 27, 2002 among El Paso Energy Partners, L.P., El Paso Energy
         Partners Finance Corporation, the Lenders party thereto, Goldman Sachs
         Credit Partners L.P., Documentation Agent, UBS Warburg LLC and Wachovia
         Bank, National Association, as Co-Syndication Agents and JPMorgan Chase
         Bank, as Administrative Agent.

<PAGE>

                               SCHEDULE 4(K)(I) TO
                           PURCHASE AND SALE AGREEMENT

                              FULL FORCE AND EFFECT

The following agreements, which were each listed as an exhibit to the
Partnership's Annual Report on Form 10-K for the year ended December 31, 2002,
have terminated in accordance with their terms.

1.       Amended and Restated General and Administrative Services Agreement by
         and between DeepTech International Inc., El Paso Energy Partners
         Company and El Paso Field Services, L.P. dated November 27, 2002.

2.       Sixth Amended and Restated Credit Agreement dated as of March 23, 1995,
         as amended and restated through October 10, 2002 by and among El Paso
         Energy Partners, L.P., El Paso Energy Partners Finance Corporation,
         Credit Lyonnais New York Branch and First Union National Bank, as
         Co-Syndication Agents, Fleet National Bank and Fortis Capital Corp., as
         Co-Documentation Agents, The Chase Manhattan Bank, as Administrative
         Agent, and the several banks and other financial institutions
         signatories thereto; First Amendment dated as of November 21, 2002.

3.       Amended and Restated Credit Agreement among EPN Holding Company, L.P.,
         the Lenders party thereto, Banc One Capital Markets, Inc. and Wachovia
         Bank, N.A., as Co-Syndication Agents, Fleet National Bank and Fortis
         Capital Corp., as Co-Documentation Agents, and JPMorgan Chase Bank, as
         Administrative Agent, dated as of April 8, 2002; First Amendment dated
         as of November 21, 2002.

4.       Senior Secured Acquisition Term Loan Credit Agreement dated as of
         November 27, 2002 among El Paso Energy Partners, L.P., El Paso Energy
         Partners Finance Corporation, the Lenders party thereto, Goldman Sachs
         Credit Partners L.P., Documentation Agent, UBS Warburg LLC and Wachovia
         Bank, National Association, as Co-Syndication Agents and JPMorgan Chase
         Bank, as Administrative Agent.

<PAGE>

                              SCHEDULE 4(K)(II) TO
                           PURCHASE AND SALE AGREEMENT

                                    DEFAULTS

None.

<PAGE>

                                SCHEDULE 4(L) TO
                           PURCHASE AND SALE AGREEMENT

                               ENVIRONMENTAL LAWS

None.<PAGE>

                                                                    EXHIBIT 10.U

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

         This EXCHANGE AND REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is
entered into as of October 2, 2003 by and among GulfTerra Energy Company,
L.L.C., a Delaware limited liability company (the "COMPANY"), GulfTerra Energy
Partners, L.P., a Delaware limited partnership (the "PARTNERSHIP"), and Goldman
Sachs & Co., a New York limited partnership (the "INVESTOR").

                                    RECITALS

         WHEREAS, GulfTerra GP Holding Company, a Delaware corporation ("HOLDING
CO.") and the Investor are parties to that certain Purchase and Sale Agreement,
dated October 2, 2003 (the "LLC PURCHASE AGREEMENT"), whereby the Investor will
purchase from Holding Co. the Class A Membership Interests of the Company (as
issued and outstanding on the date of determination, the "CLASS A MEMBERSHIP
INTERESTS") from Holding Co.;

         WHEREAS, Holding Co. is a wholly owned indirect subsidiary of El Paso
Corporation, a Delaware corporation ("EL PASO"), and El Paso has delivered
guaranteed certain obligations of Holding Co. under the LLC Purchase Agreement
pursuant to a Performance Guaranty, dated October 2, 2003 (the "GUARANTY"), in
favor of the Investor;

         WHEREAS, the Partnership and the Investor are parties to that certain
Purchase and Sale Agreement, dated October 2, 2003 (the "UNIT PURCHASE
AGREEMENT," and with the LLC Purchase Agreement, the "PURCHASE AGREEMENTS"),
whereby the Investor will purchase from the Partnership 3,000,000 newly issued
Series A common units representing limited partner interests in the Partnership
("COMMON UNITS") from the Partnership;

         WHEREAS, Holding Co. is and, upon closing of the transaction
contemplated by the LLC Purchase Agreement, Holding Co. and the Investor will be
parties to that certain First Amended and Restated Limited Liability Company
Agreement of the Company, dated October 2, 2003 (as amended, restated,
supplemented or otherwise modified from time to time, the "COMPANY LLC
AGREEMENT");

         WHEREAS, the Partnership and the Company have agreed that upon each
such exchange, the Partnership will deliver the Class A Membership Interest
received in such Exchange to the Company for cancellation, and the Company will
cause the Incentive Distribution Rights (as defined herein) to be reduced as is
provided in that certain Incentive Distribution Reduction Agreement, dated
October 2, 2003, by and between the Company and the Partnership (the "REDUCTION
AGREEMENT," and with the Purchase Agreements, the Guaranty, the Company LLC
Agreement and this Agreement, the "TRANSACTION AGREEMENTS");

         WHEREAS, this Agreement provides for the holder of the Class A
Membership Interest (the "HOLDER") to exchange such Class A Membership Interests
for Common Units, subject to the terms and provisions set forth herein, and the
Investor desires to limit the number of Common Units it or any subsequent holder
("HOLDER") receives at any one time pursuant to any such Exchange so as to not
result in its direct and/or indirect beneficial ownership of 10% of any
registered equity security covered by Section 16(a) of the Exchange Act (as
defined herein);

                                      A-1
<PAGE>

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows.

                                   ARTICLE I

         SECTION 1.1 DEFINITIONS. In addition to the terms defined elsewhere
herein, the following terms shall have the meanings set forth below:

         "ACTION" means any action, appeal, petition, plea, charge, complaint,
claim, suit, demand, litigation, arbitration, mediation, hearing, inquiry,
investigation or similar event, occurrence, or proceeding.

         "AFFILIATE" shall have the meaning assigned to such term in the Company
LLC Agreement.

         "AVAILABLE CASH" has the meaning assigned to such term in the
Partnership Agreement.

         "BASIS" means any past or current fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act, or transaction about which the relevant Person has
knowledge that forms or could form the basis for any specified consequence.

         "BREACH" means any breach, inaccuracy, failure to perform, failure to
comply, conflict with, default, violation, acceleration, termination,
cancellation, modification, or required notification.

         "CHANGE OF CONTROL" means, with respect to a Person, the acquisition by
another Person of beneficial ownership, directly or indirectly, through a
purchase, merger or other acquisition transaction or series of transactions, of
50% or more of the Voting Stock of such Person; provided, however, that for
purposes of this Agreement, any Change of Control of El Paso shall not
constitute a Change of Control of the Company or the Class B Member and any
Change of Control of The Goldman Sachs Group, Inc. or Goldman Sachs & Co. shall
not constitute a Change of Control of the Class A Member and; provided, further,
that any acquisition by an Affiliate of such Person of beneficial ownership,
directly or indirectly, through a purchase, merger or other acquisition
transaction or series of transactions, of 50% or more of the Voting Stock of
such Person shall not constitute a Change in Control.

         "CLASS A QUARTERLY DISTRIBUTION" means the product of the amount of the
distribution of Available Cash (as defined in the Partnership Agreement) by the
Partnership to the Company with respect to its general partner interest in the
Partnership and Incentive Distribution Rights times the Sharing Ratio (as
defined in the Partnership Agreement) attributable to the Class A Membership
Interest.

         "CLASS B MEMBER" means Holding Co., or its successor, in its capacity
as the owner of the Class B Membership Interests of the Company (as issued and
outstanding on the date of determination).

                                        2
<PAGE>

         "CLASS B MEMBERSHIP INTEREST" means the Class B Membership Interests of
the Company issued and outstanding as of the date of determination.

         "CLOSING DATE" shall have the meaning assigned to such term in the
Purchase Agreements.

         "COMMISSION" means the Securities and Exchange Commission.

         "COMMON UNIT QUARTERLY DISTRIBUTION" means the quarterly distribution
of Available Cash (as defined in the Partnership Agreement) paid by the
Partnership to the holders of its Common Units pursuant to the terms of the
Partnership Agreement.

         "COMPANY AVAILABLE CASH" shall have the meaning assigned to the term
"Available Cash" in the Company LLC Agreement.

         "COMPETITOR" shall have the meaning assigned to such term in the
Company LLC Agreement.

         "CONTRACT" means any contract, agreement, arrangement, commitment,
letter of intent, memorandum of understanding, heads of agreement, promise,
obligation, right, instrument, document, or other similar understanding, whether
written or oral.

         "DILUTED BASIS" means, with respect to Limited Partnership Units as of
a date of determination, (i) the number of issued and outstanding Limited
Partnership Units and (ii) such additional number of Limited Partnership Units
as are subject to issuance upon the conversion, exchange or exercise of
non-participating, convertible or exchangeable equity, rights, options or
warrants, securities of the Partnership or convertible indebtedness of the
Partnership if, as of the date of such determination, the conversion, exchange
or exercise rights of such equity securities, warrants or indebtedness are
"in-the-money" and vested or otherwise then convertible into or exchangeable or
exercisable for Limited Partnership Units pursuant to the terms and provisions
of such securities.

         "ENFORCEABLE" means, with respect to a Contract, that it is the legal,
valid, and binding obligation of the applicable Person enforceable against such
Person in accordance with its terms, except as such enforceability may be
subject to the effects of bankruptcy, insolvency, reorganization, moratorium, or
other Laws relating to or affecting the rights of creditors, and general
principles of equity.

         "ERISA" means the Employment Retirement Income Security Act of 1974, as
amended.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended,
or any and successor federal statute, and the rules and regulations thereunder
of the Commission or any successor governmental authority, all as shall be in
effect at the time of determination.

          "GOVERNMENTAL AUTHORITY" means any legislature, agency, bureau,
branch, department, division, commission, court, tribunal, magistrate, justice,
multi-national organization, quasi-governmental body, or other similar
recognized organization or body of any federal, state,

                                       3
<PAGE>

county, municipal, local, or foreign government or other similar recognized
organization or body exercising similar powers or authority.

         "HIGHEST INCENTIVE DISTRIBUTION SPLITS" shall have the meaning assigned
to such term in the Company LLC Agreement.

         "INCENTIVE DISTRIBUTIONS" mean any amount of cash distributed to the
Company, in its capacity as general partner of the Partnership, pursuant to
terms and provisions of the Partnership Agreement which exceeds an amount equal
to 1.0% of the aggregate amount of cash then being distributed to all of the
partners.

         "INCENTIVE DISTRIBUTION RIGHT" means the right of the Company pursuant
to the Partnership Agreement, as the holder the 1.0% general partner interest in
the Partnership, to receive Incentive Distributions.

         "INITIAL EXCHANGE" has the meaning assigned to such term in Section
2.7.

         "LAW" means any law (statutory, common, or otherwise), constitution,
treaty, convention, ordinance, equitable principle, code, rule, regulation,
executive order, or other similar authority enacted, adopted, promulgated, or
applied by any Governmental Authority, each as amended and now and hereinafter
in effect.

         "LIMITED PARTNERSHIP UNITS" means Common Units and any other equity
securities of the Partnership that represent a participating interest in
quarterly distributions of Available Cash made by the Partnership to its limited
partners.

         "ORDER" means any order, ruling, decision, verdict, decree, writ,
subpoena, mandate, precept, command, directive, consent, approval, award,
judgment, injunction, or other similar determination or finding by, before, or
under the supervision of any Governmental Authority, arbitrator, or mediator.

         "PARTNERSHIP AGREEMENT" means the Second Amended and Restated Agreement
of the Limited Partnership of the Partnership, as amended, restated,
supplemented or otherwise modified from time to time.

         "PERSON" means any individual or entity, including any corporation,
limited liability company, partnership, joint venture, association, joint stock
company, trust, unincorporated organization or Governmental Authority (or any
department, agency or political subdivision thereof).

         "REGISTRABLE SECURITIES" means each Common Unit, each Exchange Unit to
be issued pursuant to Article II hereof and each Tag/Drag Unit to be issued
pursuant to the Company LLC Agreement until, in the case of any such security,
(A) the earliest of (i) its effective registration under the Securities Act and
resale in accordance with the Registration Statement covering it, (ii)
expiration of the applicable holding period under Rule 144(k) under the
Securities Act or (iii) its sale to the public pursuant to Rule 144 under the
Securities Act, and (B) as a result of the event or circumstance described in
any of the foregoing clauses (i) through (iii), any legends with

                                       4
<PAGE>

respect to transfer restrictions are removed or removable in accordance with the
terms of such legend.

         "SECURITIES ACT" means the Securities Act of 1933, as amended, or any
successor federal statute, and the rules and regulations thereunder of the
Commission or any successor governmental authority, all as shall be in effect at
the time of determination.

         "THREATENED" means a demand or statement has been made (orally or in
writing) or a notice has been given (orally or in writing), or any other event
has occurred or any other circumstances exist that would lead a prudent Person
to conclude that an Action or other matter is likely to be asserted, commenced,
taken, or otherwise pursued in the future.

         "UNDERWRITTEN OFFERING" means an offering in which Common Units are
sold to an underwriter for reoffering to the public.

         "VOTING STOCK" shall have the meaning assigned to such term in the
Company LLC Agreement.

                                   ARTICLE II
                                    EXCHANGES

         SECTION 2.1 EXCHANGE RIGHT. Subject to the provisions of this Article
II, the holder of the Class A Membership Interests (the "HOLDER") shall have the
right (the "EXCHANGE RIGHT") to make a one-time election, which once made shall
be irrevocable, to contribute all (but not less than all) of such Class A
Membership Interests to the Partnership in exchange (whether through one or more
exchanges, pursuant to this Agreement, each an "EXCHANGE") for a number of
Common Units (the "EXCHANGE UNITS") derived by dividing the most recent Class A
Quarterly Distribution prior to the date of the Initial Exchange by (ii) the
amount per unit distributed to each holder of a Common Unit in respect of the
most recent Common Unit Quarterly Distribution prior to the date of the Initial
Exchange (the "EXCHANGE FORMULA"); provided, however, that in no event shall the
sum of the number of Exchange Units that are to be issued pursuant to this
Agreement exceed 9.9% of the sum of the total number of Limited Partnership
Units (determined on a Diluted Basis) on the date of the Initial Exchange plus
the number of the Exchange Units to be issued in the Initial Exchange and any
subsequent Exchanges (the "HARD CAP").

         SECTION 2.2 ADJUSTMENTS.

         (a) If the amount of the most recent Class A Quarterly Distribution
prior to the date of the Initial Exchange was impacted to any material extent by
a non-recurring, extraordinary or other similar event, in calculating the
Exchange Formula, the parties shall use the most recent Class A Quarterly
Distribution not impacted to any material extent by a non-recurring,
extraordinary or similar event (the "PRIOR CLASS A DISTRIBUTION") in lieu of the
most recent Class A Quarterly Distribution.

         (b) If during the time period commencing on the date of the most recent
Class A Quarterly Distribution (or in the case where Section 2.2(a) is deemed
applicable, the date of the Prior Class A Distribution) preceding the date of
the Initial Exchange and ending on the date of

                                       5
<PAGE>

the Initial Exchange, the Partnership has issued limited partner interests or
increased or decreased (or declared an increase or decrease) in its regular
quarterly distribution of Available Cash to holders of its Common Units, in
calculating the Exchange Formula, the parties shall use a pro forma Class A
Quarterly Distribution amount that assumes that any and all such issuances or
increases or decreases occurred in such quarter; provided, however, no pro forma
adjustment shall be made for a distribution impacted to any material extent by a
non-recurring, extraordinary or similar event.

         SECTION 2.3 EXERCISE; TOTAL NUMBER OF EXCHANGE UNITS.

         (a) To exercise the Exchange Right, the Holder shall deliver a written
notice (an "EXCHANGE Notice") to each of the Company and the Partnership. Within
five business days after the later of the receipt by the Company or the
Partnership of such Exchange Notice, the parties shall mutually determine the
total number of Exchange Units to be issued to the Holder in exchange for the
Class A Membership Interests by application of the Exchange Formula (subject to
the Hard Cap) (the "TOTAL NUMBER OF EXCHANGE UNITS") and execute an
acknowledgement in the form attached hereto as Exhibit A (the "ACKNOWLEDGEMENT")
that sets forth the Total Number of Exchange Units; provided, however, that if
the Partnership or the Class B Member requires the Holder to exercise the
Exchange Right pursuant to Section 2.5(b) below, no Exchange Notice need be
submitted by the Holder and the parties shall instead mutually determine the
Total Number of Exchange Units and execute the Acknowledgement within five
business days after the receipt by the Holder of the written notice described in
such Section 2.5(b); and provided, further, that if the parties are unable to
agree upon the Total Number of Exchange Units (including the amount of any
adjustment that may be required under Section 2.2 above), the determination
shall be made in the manner provided in Section 2.3(b) below. After any
determination pursuant to this Section 2.3, the Total Number of Exchange Units,
as set forth in the Acknowledgement, shall thenceforth be fixed, subject to
adjustment only pursuant to the anti-dilution provisions set forth in Section
2.9.

         (b) If the parties are unable to mutually agree on the Total Number of
Exchange Units within the periods provided for in Section 2.3(a), each of the
Holder, on the one hand, and the Company and the Partnership, on the other hand,
shall select a firm of independent accountants of nationally recognized standing
with which neither the Holder, on the one hand, or the Company and the
Partnership, on the other hand, has any material current business relationship
within five business days, which firms shall then mutually agree upon a third
firm of independent accountants of nationally recognized standing and refer the
matter to such third firm for resolution within five additional business days.
Such third firm shall determine the Total Number of Exchange Units within 15
business days of such referral. The aggregate fees and expense of such firms
shall be borne in the following manner: one-half by the Holder and one-fourth
each by the Company and the Partnership. The determination of the Total Number
of Exchange Units by such third firm shall be final, binding and conclusive on
the parties.

         SECTION 2.4 SOFT CAP. Notwithstanding anything in this Article II to
the contrary, in no event shall the number of Exchange Units that are issued to
the Holder in any single Exchange exceed that number of Exchange Units that
would result in the Holder and/or any of its affiliates directly or indirectly
beneficially owning more than 9.9% of any class of equity security of the
Partnership which is registered pursuant to Section 12 of the Exchange Act

                                       6
<PAGE>

(calculated pursuant to Section 16(a) of the Exchange Act) (the "SOFT CAP");
provided, however, that the parties hereto hereby expressly acknowledge and
agree that at all times during the term of this Agreement (a) the Holder shall
have the sole duty and responsibility to determine that the number of Exchange
Units issued in any Exchange does not exceed the Soft Cap and (b) neither the
Partnership nor the Company shall have any obligation to make any independent
calculation or otherwise confirm that the number of Exchange Units issued in any
such Exchange does not exceed the Soft Cap limitation.

         SECTION 2.5 TIMING OF EXERCISE OF EXCHANGE RIGHT.

         (a) The Holder may exercise the Exchange Right at any time after the
fifth (5th) anniversary of the Closing Date, subject to earlier exercise upon
the occurrence of the events described in Section 2.5(c) below.

         (b) If (i) the Holder has not elected to exercise the Exchange Right
prior to the seventh (7th) anniversary of the Closing Date, at any time
thereafter, (ii) the Class B Member has exercised its "drag along" rights under
Section 3.11(b) of the Company LLC Agreement, or (iii) the Class A Member
transfers the Class A Membership Interest to a Competitor or upon a Change of
Control of the Class A Member that results in a Competitor beneficially owning
50% or more of the Voting Stock of the surviving entity, the Partnership (in the
case of clauses (i) and (iii)) or the Class B Member (in the case of clause
(ii)) may elect to require the Holder to exercise the Exchange Right by
delivering written notice to the Holder. The Exchange Formula applicable in the
case of an election by the Partnership or the Class B Member under this Section
2.5 shall be calculated in the same manner as specified in Section 2.1 above
(and in accordance with Sections 2.2, 2.10 and other applicable provisions of
this Article II); provided, however, that in the case of clause (ii), (x) the
Holder shall only be required to Exchange that portion of its Class A Membership
Interest in excess of that portion for which it did not elect to, or is not
permitted to, receive cash consideration pursuant to Section 3.11(b) of the
Company LLC Agreement, (y) the value of the Exchange Units to be issued to the
Holder shall not be less than the amount dictated by Section 3.11(b)(i) of the
Company LLC Agreement and (z) the Exchange made pursuant thereto shall not be
subject to the Soft Cap.

         (c) Notwithstanding the limitations on the Holder's right to exercise
the Exchange Right in Section 2.5(a), the Holder may exercise the Exchange Right
(i) upon the public announcement of execution of definitive transaction
documents relating to (and in no event later than 10 days prior to the
consummation of such transaction) the (A) completion of a merger of the
Partnership with another entity or (B) completion of the sale or other
disposition by the Partnership or the Company of all or substantially all of its
assets, or (ii) at any time during the 10 days prior to the completion of a
direct or indirect Change of Control of Holding Co., (iii) at any time during
the 10 days prior to the completion of a liquidation of the Partnership, (iv) at
any time during the 10 days after the declaration by the Partnership of a
distribution of Cash from Interim Capital Transactions (as such term is defined
in the Partnership Agreement) or (v) at any time after the commencement of a
voluntary or an involuntary bankruptcy or similar proceeding against El Paso
Corporation or any of its material subsidiaries (including Holding Co. or the
Company), if at the time of such exercise there is then pending a proceeding
seeking payment pursuant to ERISA from the Company of any amounts due relating
to the termination of a benefit plan subject to ERISA or (vi) at the closing of
the sale or contribution by the Company of the

                                       7
<PAGE>

Highest Incentive Distribution Splits, which sale or contribution is effected in
accordance with Section 3.12 of the Company LLC Agreement, if the Holder has
timely delivered to the Class B Member the notice of such Exchange Right in
accordance with Section 3.12 of the Company LLC Agreement; provided, however,
that the foregoing provisions of clauses (i) and (ii) shall not apply if such
merger, sale, disposition or Change of Control also triggers the "drag along"
rights of Holding Co. contained in Section 3.11(b) of the Company LLC Agreement;
and provided, further, that in the case of clause (v) that the Holder may only
Exchange that portion of its Class A Membership Interest such that, immediately
following such Exchange, the Holder retains not less than 1% of the total
Membership Interests (as defined in the Company LLC Agreement) in the Company
issued and outstanding at such time.

         SECTION 2.6 EXCHANGE PROCEDURES.

         (a) Within five business days after the execution of the
Acknowledgement, the Holder shall deliver written notice to each of the Company
and the Partnership which notice must include a determination, made in good
faith, that either (i) the total number of Exchange Units set forth in the
Acknowledgement can be issued to the Holder in compliance with the Soft Cap
limitation or (ii) a lesser number of Exchange Units must be issued to the
Holder in order to maintain compliance with the limitations of the Soft Cap (the
"CONFIRMATION NOTICE"). The Holder shall have sole responsibility and liability
for determining the number of Exchange Units so included in the Confirmation
Notice. The Company and the Partnership shall be entitled to rely, without
independent investigation, entirely upon the number of Exchange Units set forth
in the Confirmation Notice by the Holder as to the number of Exchange Units that
may be issued to the Holder in compliance with the Soft Cap limitation, and the
parties hereto hereby expressly acknowledge and agree that neither the
Partnership nor the Company shall have any obligation to make any independent
calculation or otherwise confirm that the number of Exchange Units issued
complies with the Soft Cap limitation. The Holder shall also deliver to the
Partnership, along with such Confirmation Notice, a certificate (a "CLASS A
CERTIFICATE") representing not less than the portion of the Class A Membership
Interest that is to be exchanged at that time. Within five business days after
receipt by the Partnership of a valid Confirmation Notice and Class A
Certificate conforming to the requirements of this Section 2.6, the Partnership
shall issue to the Holder such number of Exchange Units set forth in the
Confirmation Notice in fully certificated form. If such Class A Certificate
represents more than the percentage ownership interest in the Company to be
exchanged, a new Class A Certificate representing the percentage ownership
interest not so exchanged shall be reissued to the Holder.

         (b) Notwithstanding the foregoing, if any Exchange is effected
hereunder following the record date established by the Partnership for its
Common Unit Quarterly Distribution for a particular calendar quarter but prior
to the record date to be established by the Company for its distribution of
Company Available Cash for such quarter, the Holder shall be entitled to
receive, upon the date of distribution by the Company, the Class A Quarterly
Distribution as if it were still an owner of such Class A Membership Interest on
the record date of the Company for its distribution of Company Available Cash
for such quarter. For the sake of clarity and to assure that no negative
inference is drawn from the language immediately above, in all other
circumstances, the Class A Member will be entitled to any distribution from the
Company and/or the Partnership if it is the owner of a membership interest of
the Company (including any unexchanged Class A Membership Interest) or
partnership interest of the Partnership,

                                       8
<PAGE>

respectively, on the applicable record date established for such distribution
subject to the provisions of the Company LLC Agreement and the Partnership
Agreement. .

         SECTION 2.7 ADDITIONAL EXCHANGES.

         (a) If the effect of the application of the Soft Cap is to cause the
Partnership to issue less than the Total Number of Exchange Units to the Holder
in the initial Exchange pursuant to this Article II (the "INITIAL EXCHANGE"), on
the first business day of each fiscal quarter of the Partnership commencing
thereafter the Holder shall provide written notice (an "UPDATE NOTICE") to the
Company and Partnership which must include a determination, made in good faith,
whether the Holder may receive additional Exchange Units in compliance with the
limitations of the Soft Cap and, if so, the requested number of additional
Exchange Units to be issued to the Holder ("ADDITIONAL EXCHANGE UNITS") in
exchange for the contribution of a corresponding portion (calculated in
accordance with the Exchange Formula) of the Holder's remaining Class A
Membership Interests; provided, however, that the maximum number of Additional
Exchange Units that the Holder may request to be issued pursuant to any Update
Notice, and that the Partnership shall be obligated to issue in response
thereto, may not exceed the lesser of (i) the excess of the Total Number of
Exchange Units over the sum of all Exchange Units issued to the Holder prior to
the date of such Update Notice (including Exchange Units issued in the Initial
Exchange and all Additional Exchange Units issued in any subsequent Exchanges)
and (ii) the maximum number of Additional Exchange Units that may be issued to
the Holder in compliance with the limitation of the Soft Cap; provided, further,
the Company and the Partnership shall be entitled to rely, without independent
investigation, entirely upon the number of Additional Exchange Units set forth
by the Holder in the Update Notice as to the number of Exchange Units that may
be issued to the Holder in compliance with the limitation set forth in clause
(ii) above, and the parties hereto hereby expressly acknowledge and agree that
neither the Partnership nor the Company shall have any obligation to make any
independent calculation or otherwise confirm that such number of Additional
Exchange Units issued complies with the limitation set forth in clause (ii)
above.

         (b) If the Partnership receives a valid Update Notice requesting the
issuance of Additional Exchange Units, the Holder shall also deliver to the
Partnership, along with such Update Notice, a Class A Certificate representing
not less than the portion of the Class A Membership Interest that is to be
exchanged for such Additional Exchange Units. Within five business days of
receipt of such Update Notice and Class A Certificate conforming to the
requirements of Sections 2.7(a) and 2.7(b), the Partnership shall issue to the
Holder such number of Additional Exchange Units requested in the Update Notice
in fully certificated form and, if such Class A Certificate represents more than
the percentage ownership interest in the Company to be exchanged, a new Class A
Certificate represented the percentage ownership interest not so exchanged shall
be reissued to the Holder.

         SECTION 2.8 EXCHANGE PERIOD. If the Partnership issues less than the
Total Number of Exchange Units in the Initial Exchange, the period from the date
of such Initial Exchange through the date of the Exchange after which all of the
Total Number of Exchange Units will have been issued to the Holder shall be
known, for purposes of the Company LLC Agreement, LLC Purchase Agreement or
otherwise, as the "EXCHANGE PERIOD."

                                       9
<PAGE>

         SECTION 2.9 REFLECTION OF REDUCED SHARING RATIO. Promptly following
each Exchange pursuant to this Article II, (a) the Company's Register (as
defined in the Company LLC Agreement) shall be updated in compliance with the
procedures set forth therein to reflect the reduced Sharing Ratio (as defined in
the Company LLC Agreement) attributable to the Class A Membership Interests as a
result of such Exchange, such reduction to be effective as of the same date as
the date of the effectiveness of the amendment to the Partnership Agreement
referred to in Section 3.3 that corresponds to such Exchange.

         SECTION 2.10 ANTI-DILUTION PROVISIONS. During the period that commences
upon the date of the initial election to exercise the Exchange Right and
continues for so long as less than the Total Number of Exchange Units have been
issued to the Holder pursuant to the terms of this Article II, the excess of the
Total Number of Exchange Units over the aggregate number of Exchange Units
issued in all prior Exchanges (such excess, the "UNISSUED EXCHANGE UNITS") shall
be subject to adjustment from time to time upon the happening of certain events
as follows:

         (a) Reorganization, Merger or Consolidation. If the Partnership
reorganizes, merges, consolidates or otherwise combines with another Person in a
transaction whereby all of the holders of Common Units will receive securities,
property or assets of the Partnership or its successor payable with respect to
or in exchange for each Common Unit held, lawful and adequate provision shall be
made whereby the Holder shall have the right to receive (in lieu of the Unissued
Exchange Units), upon each subsequent Exchange following the consummation of
such transaction, the number of securities, property or assets of the
Partnership or its successor resulting from such reorganization, merger,
consolidation or other transaction as would have been issued or payable to the
Holder if the Holder had held a number of Common Units equal to (and in lieu of)
the total number of Unissued Exchange Units immediately prior to the
consummation of such transaction. The foregoing provisions of this Section
2.10(a) shall similarly apply to successive reorganizations, mergers,
consolidations or other applicable transactions and to the stock or securities
of any other Person that are at the time receivable upon exercise of the
Exchange Right.

         (b) Reclassification, etc. If the Partnership, by reclassification of
securities or otherwise, changes the Common Units or any other securities as to
which the Exchange Right may apply hereunder into the same or a different number
of securities of any other class or classes, each subsequent Exchange in respect
of Unissued Exchange Units shall thereafter represent the right to acquire upon
each such Exchange such number and kind of securities as would have been
issuable, as the result of such change, with respect to or in exchange for a
number of Common Units equal to the total number of Unissued Exchange Units.

         (c) Subdivision or Combination; Unit Dividends. If the Partnership
shall split, divide or combine its outstanding Common Units or declare and pay a
dividend on its outstanding Common Units which consists of additional Common
Units (including a split effected in the form of a dividend), then the total
number of Unissued Exchange Units shall be adjusted, as of the opening of
business on the effective date of such split, subdivision or combination or the
day after the day upon which such dividend or other distribution is paid to
unitholders, as the case may be, to a new total number of Unissued Exchange
Units determined by multiplying the total number of Unissued Exchange Units
immediately prior to such payment or other distribution by a fraction (i) the
numerator of which shall be the total number of outstanding Common Units

                                       10
<PAGE>
immediately after such split, dividend, combination or distribution and (ii) the
denominator of which shall be the total number of outstanding Common Units
immediately prior to such split, dividend, combination or distribution.

         (d) Other Distributions on Common Units. If the Partnership shall make
a distribution on its Common Units which consists of (i) limited partner
interests of the Partnership other than additional Common Units, evidences of
its indebtedness, or assets (including distributions of Cash from Interim
Capital Transactions or securities (other than Common Units), but excluding
distributions of Cash from Operations), then the Holder shall be entitled to
receive, upon each Exchange for Unissued Exchange Units, that portion of any
such distribution which the Holder would have been entitled to receive, had such
Exchange occurred immediately prior to the record date of such distribution;
provided, however, that if any such distribution consists of property which has
a limited life or expiration date (including but not limited to options,
warrants or similar instruments), the Holder shall be entitled to receive such
property on the date of such distribution. At the time of the record date
established for any such distribution, the Partnership shall allocate sufficient
reserves to ensure the timely and full performance of the provisions of this
Section 2.10(d).

         (e) Self Tender. If (i) the Partnership shall engage in a tender offer
for more than 10% of the Common Units issued and outstanding at such time and
(ii) such tender offer is closed and payment is made for the Common Units
purchased therein for a purchase price per unit that is at least 5% greater than
the closing sales price per Common Unit on the trading day immediately preceding
the announcement of such tender offer (the "PRE-TENDER VALUE"), then the Holder
shall be entitled to receive, upon each Exchange for Unissued Exchange Units (in
addition to such Exchange Units), the excess of the purchase price per Common
Unit paid upon closing of the tender offer over the Pre-Tender Value per Common
Unit multiplied by the total number of Unissued Exchange Units which would have
been sold by the Holder if it tendered all of the Unissued Exchange Units to the
Partnership in such tender offer. Upon the closing of any such tender offer, the
Partnership shall allocate sufficient reserves to ensure the timely and full
performance of the provisions of this Section 2.10(e).

         (f) No Other Adjustments. Other than specifically as set forth above in
this Section 2.10, no adjustment shall be made to the total number Unissued
Exchange Units as a result of or pursuant to the granting or issuance by the
Partnership of additional Common Units, or any security convertible thereinto or
exercisable or exchangeable therefore, including without limitation(i) the
issuance of Common Units or any other security of the Partnership or any
affiliate thereof (including securities convertible into or exchangeable for
Common Units) pursuant to an underwritten public offering or a private
placement, (ii) the issuance of Common Units or any other security of the
Partnership or any affiliate thereof (including securities convertible into or
exchangeable for Common Units) as consideration in an acquisition transaction,
(iii) the issuance of Common Units or any other security of the Partnership or
any affiliate thereof (including securities convertible into or exchangeable for
Common Units) in payment or satisfaction of any dividend upon or distribution to
any class of unit or equity security of the Partnership other than Common Units
and (iv) the issuance of options, restricted Common Units or "phantom" units
exercisable for or that upon vesting become Common Units, or the issuance of
Common Units upon the exercise or vesting or such options or rights, to

                                       11
<PAGE>

officers, employees or directors of, or consultants to, the Partnership, the
Company or any of their affiliates.

         (g) No Multiple Adjustments. In the event of any one circumstance which
may give rise to an adjustment of the total number of Unissued Exchange Units
under one or more of Sections 2.10(a) through 2.10(e) above, the Partnership may
only apply the provisions of one of such paragraphs if necessary in order to
avoid unreasonable results given the circumstances, such determination to be
made in the Partnership's good faith and reasonable discretion; provided,
however, that a series of steps in a transaction or action shall not be
considered one circumstance for the purposes of this Section 2.10(g).

         (h) Calculation of Adjustments. Upon each occurrence of an event
causing an adjustment pursuant to this Section 2.10, the Partnership will
promptly (i) calculate such adjustment and retain a record of such calculation
at its principal office and (ii) deliver to the Holder a certificate signed by
an appropriate officer on behalf of the Partnership, setting forth in reasonable
detail the event requiring the adjustment, the method of calculation of the
adjustment, and the number of Unissued Exchange Units and/or other securities,
property or assets after giving effect to such adjustment (an "ADJUSTMENT
CERTIFICATE"). If the Holder does not agree with such calculation, the Holder
shall give written notice (an "ADJUSTMENT DISPUTE NOTICE") to the Company and
the Partnership within ten business days of the receipt of such Adjustment
Certificate. If the parties are unable to mutually agree on the calculation of
such adjustment within five business days of receipt by the Company and the
Partnership of such Adjustment Dispute Notice, the parties shall each select a
firm of independent accountants of nationally recognized standing within five
business days, which firms shall then mutually agree upon a third firm of
independent accountants of nationally recognized standing and refer the matter
to such third firm for resolution within five additional business days. Such
third firm shall determine the amount of such adjustment to the Total Number of
Exchange Units within 15 business days of such referral. The aggregate fees and
expense of such firms shall be borne in the following manner: one-half by the
Holder and one-half by the Partnership. The determination by such firm of the
calculation of the adjustment described in the Adjustment Notice shall be final,
binding and conclusive on the parties.

         SECTION 2.11 NONSEPARABILITY. The Exchange Right is not separable from
the Class A Membership Interest. If the Investor or any subsequent Holder of the
Class A Membership Interests transfers such interests (which transfer may only
be made in compliance with applicable provisions of the Company LLC Agreement),
the Exchange Right shall be transferred to such transferee who shall then
constitute the Holder hereunder.

         SECTION 2.12 NYSE LISTING. Prior to the issuance of any Exchange Units
pursuant to this Article II, the Partnership shall cause such Exchange Units to
be approved for listing on the New York Stock Exchange or such other exchange or
quotation system on which the Common Units are then listed.

                                  ARTICLE III
                                   [RESERVED]

                                       12
<PAGE>

                                   ARTICLE IV
                               REGISTRATION RIGHTS

         SECTION 4.1 SHELF REGISTRATION STATEMENT. Within 30 days after the
Closing Date (the "INITIAL SHELF FILING DEADLINE"), the Partnership shall file
with the Commission a "shelf" registration statement on Form S-3 pursuant to
Rule 415 under the Securities Act (the "INITIAL SHELF REGISTRATION STATEMENT")
providing for the resale of an aggregate of (i) the 3,000,000 Common Units
purchased by the Investor pursuant to the Unit Purchase Agreement plus (ii) such
number of Exchange Units that may be issued to the Holder pursuant to Article II
based on the number of Common Units outstanding on the Closing Date.

         SECTION 4.2 ADDITIONAL COMMON UNITS. If the Initial Shelf Registration
Statement, even if supplemented or amended, does not have sufficient
availability to provide for the resale of (x) Exchange Units issued to the
Holder or (y) any Common Units issued to the Holder by the Partnership pursuant
to the provisions in the Company LLC Agreement relating to the exercise by the
Holder or the Class B Member, as the case may be, of their respective "tag
along" or "drag along" rights provided therein ("TAG/DRAG UNITS"), the Holder
may request that the Partnership file with the Commission one additional "shelf"
registration statement on Form S-3 pursuant to Rule 415 under the Securities Act
to accommodate any resale of Tag/Drag Units or Exchange Units in such amounts as
are requested at such time by the Holder in writing (a "SHELF NOTICE"). The
Partnership shall file such additional "shelf" registration statement (with the
Initial Shelf Registration Statement, a "SHELF REGISTRATION STATEMENT"), if any,
within 30 days after receipt by the Partnership of a written request from the
Holder (with the Initial Shelf Filing Deadline, a "SHELF FILING DEADLINE").

         SECTION 4.3 EFFECTIVENESS.

         (a) Subject to the provisions of this Article IV, the Partnership shall
use its best efforts to cause (i) the Initial Shelf Registration Statement to be
declared effective prior to the expiration of the Initial Lock-up Period (as
defined below) (the "INITIAL EFFECTIVENESS TARGET DATE") and (ii) any subsequent
Shelf Registration Statement to be declared effective no later than 90 days
after delivery to the Partnership by the Holder of a Shelf Notice (with the
Initial Effectiveness Deadline, the "EFFECTIVENESS TARGET DATE") and in either
case shall use best efforts to keep such Shelf Registration Statement
continuously effective, supplemented and amended to the extent necessary to
assure that it is available for resale of the Common Units by the Holder and
that it conforms in all material respects with the requirements the Securities
Act, in each case during the entire period (the "EFFECTIVENESS PERIOD")
beginning on the date such Shelf Registration Statement shall first be declared
effective under the Securities Act and ending on the earlier to occur of (i) the
sale pursuant to a Shelf Registration Statement of all of the Registrable
Securities registered under such Shelf Registration Statement and (ii) the date
on which all of the Common Units registered under such Shelf Registration
Statement are no longer Registrable Securities.

         (b) The "INITIAL LOCK-UP PERIOD" shall be earliest to occur of a (i)
the date that is the earlier of 90 days or the number of days agreed to by the
Partnership and the underwriters in the applicable underwriting agreement as a
lock-up period in connection with any primary offering of the Partnership that
closes prior to November 30, 2003, (ii) waiver by the underwriters of any such
offering of any lock-up related thereto, (iii) after the closing of any such
offering, the date

                                       13
<PAGE>

of any sale of common units by the Partnership, the Company, El Paso Corporation
or its subsidiaries (other than pursuant to the exercise of existing options,
warrants or similar securities or agreements or as consideration in an
acquisition), or (iv) February 28, 2004.

         SECTION 4.4 INFORMATION FURNISHED BY HOLDER. The Holder shall furnish
to the Partnership in writing, as soon as practicable after the Closing Date (in
the case of the Initial Shelf Registration Statement) or after requesting the
filing of an additional Shelf Registration Statement pursuant to Section 4.2,
the information specified in Items 507 and 508 of Regulation S-K under the
Securities Act and any other information reasonably requested by the Partnership
for inclusion in the applicable Shelf Registration Statement pursuant to the
Securities Act. Notwithstanding Sections 4.1 and 4.2, the Partnership shall not
be required to file any such Shelf Registration Statement until the Holder has
complied with the immediately preceding sentence. In addition, the Holder shall
promptly furnish to the Partnership (i) any additional information required to
be disclosed in such Shelf Registration Statement in order to make the
information previously furnished to the Partnership by the Holder not materially
misleading and (ii) any additional information as may be reasonably requested by
the Partnership for inclusion in any new prospectus or prospectus supplement or
post-effective amendment.

         SECTION 4.5 REGISTRATION PROCEDURES.

         (a) In connection with each Shelf Registration Statement, the
Partnership shall comply with all the provisions of Section 4.5(b) hereof and
shall, in accordance with Sections 4.1, 4.2, 4.3 and 4.4 hereof, prepare and
file with the Commission each Shelf Registration Statement relating to the
registration on Form S-3 under the Securities Act.

         (b) In connection with each Shelf Registration Statement and any
related prospectus or prospectus supplement required by this Agreement to permit
the sale or resale of Common Units, the Partnership shall:

                  (i) Subject to any notice by the Partnership in accordance
with this Section 4.5(b) of the existence of any fact or event of the kind
described in Section 4.5(b)(iii)(D), use its best efforts to keep the Shelf
Registration Statement continuously effective during the Effectiveness Period;
upon the occurrence of any event that would cause the Shelf Registration
Statement or the related prospectus or prospectus supplement (A) to contain a
material misstatement or omission or (B) not be effective and usable for resale
of Registrable Securities during the Effectiveness Period, the Partnership shall
file promptly an appropriate amendment or supplement to or a document to be
incorporated by reference into the Shelf Registration Statement or a report
filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act, in the case of clause (A), correcting any such misstatement or
omission, and, in the case of either clause (A) or (B), use its best efforts to
cause any such amendment to be declared effective and the Shelf Registration
Statement and the related prospectus or prospectus supplement to become usable
for their intended purposes as soon as practicable thereafter. Notwithstanding
anything in this Agreement to the contrary, the Partnership may suspend the
effectiveness or use of and elect not to keep current the Shelf Registration
Statement by written notice to the Holder for a period not to exceed an
aggregate of 30 days in any 90-day period (each such period a "SUSPENSION
PERIOD") if:

                                       14
<PAGE>

                  (x) an event occurs and is continuing as a result of which the
         Shelf Registration Statement would, in the Partnership's reasonable
         judgment, contain 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 not misleading; and

                  (y) the Partnership reasonably determines that the disclosure
         of such event at such time would or could reasonably be expected to
         either (i) have a material adverse effect on the business or prospects
         of the Partnership and its subsidiaries, taken as a whole, or (ii)
         adversely affect a material financing, acquisition or other transaction
         (existing or planned);

provided, that (A) in the event the disclosure relates to a previously
undisclosed proposed or pending material business transaction, the disclosure of
which would impede the Partnership's ability to consummate such transaction, the
Partnership may extend a Suspension Period from 30 days to 45 days and (B) the
Suspension Periods shall not exceed an aggregate of 90 days in any 365-day
period. The Holder, by its acceptance of a Registrable Security, agrees to hold
in confidence any communication by the Partnership relating to an event
described in Section 4.5(b)(i)(x) and (y) or Section 4.5(b)(iii)(D).
Notwithstanding the foregoing, the Holder may not use the Shelf Registration
Statement or related prospectus during the Initial Lock-up Period.

                  (ii) Prepare and file with the Commission such amendments and
post-effective amendments to the Shelf Registration Statement as may be
necessary to keep the Shelf Registration Statement effective during the
Effectiveness Period; cause the related prospectus to be supplemented by any
required prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 under the Securities Act, and to comply fully with the applicable
provisions of Rules 424 and 430A under the Securities Act in a timely manner;
and comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by the Shelf Registration Statement during
the applicable period in accordance with the intended method or methods of
distribution by the sellers thereof set forth in the Shelf Registration
Statement or supplement to the prospectus.

                  (iii) Advise the underwriter(s), if any, and, in the case of
(A), (C) and (D) below, the Holder promptly and, if requested by such Persons,
to confirm such advice in writing:

                  (A) when the prospectus or any prospectus supplement or
         post-effective amendment has been filed, and, with respect to the Shelf
         Registration Statement or any post-effective amendment thereto, when
         the same has become effective;

                  (B) of any request by the Commission for amendments to the
         Shelf Registration Statement or amendments or supplements to the
         prospectus or for additional information relating thereto;

                  (C) of the issuance by the Commission of any stop order
         suspending the effectiveness of the Shelf Registration Statement under
         the Securities Act or of the suspension by any state securities
         commission of the qualification of the Registrable

                                       15
<PAGE>

         Securities for offering or sale in any jurisdiction, or the initiation
         of any proceeding for any of the preceding purposes; or

                  (D) of the existence (but not the nature) of any fact or the
         happening of any event, during the Effectiveness Period, that makes any
         statement of a material fact made in the Shelf Registration Statement,
         the related prospectus, any amendment or supplement thereto, or any
         document incorporated by reference therein untrue, or that requires the
         making of any additions to or changes in the Shelf Registration
         Statement, the related prospectus or any amendment or supplement
         thereto in order to make the statements therein not misleading.

         If at any time the Commission shall issue any stop order suspending the
effectiveness of the Shelf Registration Statement, or any state securities
commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Registrable Securities
under state securities or Blue Sky laws, the Partnership shall use its best
efforts to obtain the withdrawal or lifting of such order at the earliest
possible time.

                  (iv) Furnish to counsel for the Holder and each of the
underwriter(s), if any, before filing with the Commission, a copy of the Shelf
Registration Statement and copies of any prospectus included therein or any
amendments or supplements to either of the Shelf Registration Statement or
prospectus (other than documents incorporated by reference after the initial
filing of the Shelf Registration Statement), which documents will be subject to
the review of such counsel and underwriter(s), if any, for a period of three
business days, and the Partnership will not file the Shelf Registration
Statement or prospectus or any amendment or supplement to the Shelf Registration
Statement or prospectus (other than documents incorporated by reference) to
which such counsel or the underwriter(s), if any, shall reasonably object within
three business days after the receipt thereof.

                  (v) Make available pursuant to a confidentiality and non-use
agreement at reasonable times for inspection by one or more representatives of
the Holder any underwriter, if any, participating in any distribution pursuant
to the Shelf Registration Statement, and any attorney or accountant retained by
the Holder or any of the underwriter(s), all financial and other records,
pertinent corporate documents and properties of the Partnership as shall be
reasonably necessary to enable them to exercise any applicable due diligence
responsibilities and to supply all information reasonably requested by any such
representative or representatives of the Holder, underwriter, attorney or
accountant in connection with the Shelf Registration Statement after the filing
thereof and before its effectiveness; provided, however, that the Holder shall
be responsible for ensuring that any such information shall be kept confidential
and not used for any purpose other than as contemplated hereby.

                  (vi) If requested by the Holder or the underwriter(s), if any,
incorporate in the Shelf Registration Statement or prospectus, pursuant to a
prospectus supplement or post-effective amendment if necessary, such
non-confidential information as the Holder and underwriter(s), if any, may
reasonably request to have included therein, including, without limitation: (1)
information relating to the "Plan of Distribution" of the Registrable
Securities, (2) information with respect to the number of Registrable Securities
being sold, (3) the purchase price being paid therefor and (4) any other terms
of the offering of the Registrable Securities to be sold in such

                                       16
<PAGE>

offering; and make all required filings of such prospectus supplement or
post-effective amendment as soon as reasonably practicable after the Partnership
is notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment.

                  (vii) Furnish to the Holder and each of the underwriter(s), if
any, without charge, at least one copy of the Shelf Registration Statement, as
first filed with the Commission, and of each amendment thereto (and any
documents incorporated by reference therein or exhibits thereto (or exhibits
incorporated in such exhibits by reference) as such Person may request in
writing).

                  (viii) Deliver to the Holder and each of the underwriter(s),
if any, without charge, as many copies of the prospectus (including each
preliminary prospectus) and any amendment or supplement thereto as such Persons
reasonably may request.

                  (ix) In the event of an Underwritten Offering, the Partnership
shall enter into a standard underwriting agreement with the underwriters and
shall:

                  (A) upon request, furnish to the Holder and each underwriter,
         if any, in such substance and scope as they may reasonably request and
         as are customarily made by the Partnership to underwriters in primary
         underwritten offerings, upon the date of closing of any sale of
         Registrable Securities in an Underwritten Offering:

                           (1) an officer's certificate, dated the date of such
                  closing, confirming, as of the date thereof, such matters as
                  such parties may reasonably request;

                           (2) opinions, each dated the date of such closing, of
                  counsel (inside and outside) to the Partnership covering such
                  matters as are customarily covered in legal opinions to
                  underwriters in connection with primary underwritten offerings
                  of securities by the Partnership; and

                           (3) customary comfort letters, dated the date of such
                  closing, from the Partnership's independent accountants (and
                  from any other accountants whose report is contained or
                  incorporated by reference in the Shelf Registration
                  Statement), in the customary form and covering matters of the
                  type customarily covered in comfort letters to underwriters in
                  connection with primary underwritten offerings of securities;
                  provided, that if the Partnership has used its best efforts to
                  obtain such letters, the Partnership shall not be responsible
                  if the accountants do not agree to deliver same;

                  (B) set forth in full in the underwriting agreement, if any,
         indemnification provisions and procedures which provide rights no less
         protective than those set forth in Section 4.10 hereof with respect to
         all parties indemnified; and

                  (C) deliver such other documents and certificates as may be
         reasonably requested by such parties to evidence compliance with clause
         (A) above and with any

                                       17
<PAGE>

         customary conditions contained in the underwriting agreement or other
         agreement entered into by the Holder pursuant to this clause (ix).

                  (x) Before any public offering of Registrable Securities,
cooperate with the Holder, the underwriter(s), if any, and their respective
counsel in connection with the registration and qualification of the Registrable
Securities under the securities or Blue Sky laws of such jurisdictions as the
Holder or underwriter(s), if any, may reasonably request and do any and all
other acts or things necessary or reasonably advisable to enable the disposition
in such jurisdictions of the Registrable Securities covered by the Shelf
Registration Statement; provided, however, that the Partnership shall not be
required (A) to register or qualify as a foreign limited partnership or a dealer
of securities where it is not now so qualified or to take any action that would
subject it to the service of process in any jurisdiction where it is not now so
subject or (B) to subject itself to taxation in any such jurisdiction if it is
not now so subject.

                  (xi) Cooperate with the Holder and the underwriter(s), if any,
to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends
(unless required by applicable securities laws); and enable such Registrable
Securities to be in such denominations and registered in such names as the
Holder or the underwriter(s), if any, may reasonably request within a reasonable
time before any sale of Registrable Securities made by such underwriter(s).

                  (xii) Use its best efforts to cause the Registrable Securities
covered by any Shelf Registration Statement to be registered with or approved by
such other U.S. governmental agencies or authorities as may be necessary to
enable the seller or sellers thereof or the underwriter(s), if any, to
consummate the disposition of such Registrable Securities, subject to the
proviso in clause (x) above.

                  (xiii) Subject to Section 4.5(b)(i) hereof, if any fact or
event contemplated by Section 4.5(b)(iii)(D) hereof shall exist or have
occurred, use its best efforts to prepare a supplement or post-effective
amendment to the Shelf Registration Statement or related prospectus or any
document incorporated therein by reference or file any other required document
so that, as thereafter delivered to the purchasers of Registrable Securities,
the prospectus will not contain an untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading.

                  (xiv) Provide CUSIP numbers for all Registrable Securities not
later than the effective date of the Shelf Registration Statement and provide
the transfer agent with certificates for the Common Units that are in a form
eligible for transfer in accordance with applicable requirements.

                  (xv) Cooperate and assist in any filings required to be made
with the NASD and in the performance of any due diligence investigation by any
underwriter that is required to be retained in accordance with the rules and
regulations of the NASD.

                  (xvi) Otherwise use its best efforts to comply with all
applicable rules and regulations of the Commission and all reporting
requirements under the rules and regulations of the Exchange Act.

                                       18
<PAGE>

         (c) The Holder agrees that, upon receipt of any notice from the
Partnership of the existence of any fact of the kind described in Section
4.5(b)(iii)(D) hereof, the Holder will, and will use its best efforts to cause
any underwriter(s) in an Underwritten Offering to, forthwith discontinue
disposition of Registrable Securities pursuant to the Shelf Registration
Statement until:

                  (xvii) the Holder has received copies of the supplemented or
amended prospectus contemplated by Section 4.5(b)(xiii) hereof; or

                  (xviii) the Holder is advised in writing by the Partnership
that the use of the prospectus may be resumed.

If so directed by the Partnership, the Holder will deliver to the Partnership
(at the Partnership's expense) all copies, other than permanent file copies then
in the Holder's possession, of the prospectus covering such Registrable
Securities that was current at the time of receipt of such notice of suspension.

         SECTION 4.6 STOP TRANSFER INSTRUCTIONS. The Partnership may give such
stop transfer instructions to its transfer agent as it shall deem reasonably
necessary to prevent any sale of shares of Common Units under a Shelf
Registration Statement at any time when the Holder is not permitted to make such
a sale pursuant to this Article IV.

         SECTION 4.7 NO PIGGYBACK OR OTHER REGISTRATION RIGHTS. Other than as
set forth in this Article IV, the Holder shall have no registration rights with
respect to Common Units beneficially owned by the Holder (including any
"piggyback" registration rights). In addition, the Partnership shall not be
required to include any Common Units acquired by the Holder for resale under a
Shelf Registration Statement other than the Common Units that constitute
Registrable Securities under this Agreement.

         SECTION 4.8 REGISTRATION EXPENSES. The Partnership shall bear all
expenses incident to the filing of any Shelf Registration Statement, including
without limitation: (i) all registration and filing fees and expenses; (ii) all
fees and expenses of compliance with federal securities and state Blue Sky or
securities laws; (iii) all fees and disbursements of counsel for the
Partnership; (v) all application and filing fees in connection with listing or
quoting, as the case may be, the Common Units on each securities exchange or
automated quotation system on which the Common Units are then listed or quoted;
and (vi) all fees and disbursements of independent certified public accountants
of the Partnership (including the expenses of any special audit and comfort
letters required by or incident to such performance); provided, however, the
Holder shall bear the all the cost of (x) any discount or selling commission
incurred in connection with the sale of any of such Common Units and (y) any
fees and disbursements of counsel for the Holder or any other professional
advisors engaged by the Holder.

         SECTION 4.9 RULE 144. The Partnership covenants that it will file at
times chosen by the Partnership any reports required to be filed by it under
Section 13 or 15(d) of the Exchange Act, all to the extent required from time to
time to enable the Holder to sell Registrable Securities without registration
under the Act within the limitation of the exemptions provided by Rule 144 under
the Act, as such Rule may be amended from time to time (or any similar rule or

                                       19
<PAGE>

regulation hereafter adopted by the Commission). Upon the reasonable request of
the Holder, the Partnership will deliver to the Holder a written statement as to
whether it has complied with such requirements. The Partnership further
covenants that, upon the request of the Holder, it will take any further actions
reasonably necessary to permit the Holder to transfer the Common Units under
Rule 144, including, without limitation, causing any restrictive legends to be
removed from any certificates representing Common Units in accordance with the
terms of such legends.

         SECTION 4.10 INDEMNIFICATION.

         (a) For purposes of this Section 4.10, the following terms shall have
the following meanings:

                  (i) "PRELIMINARY PROSPECTUS" means any preliminary prospectus
supplement to the base prospectus included in a Shelf Registration Statement,
together with such base prospectus, that describes the Common Units and the
offering thereof, filed with the Commission pursuant to Rule 424(a) of the rules
and regulations of the Commission under the Act and used prior to the filing of
the Prospectus.

                  (ii) "PROSPECTUS" means the final prospectus supplement, in
the form first filed pursuant to Rule 424(b) under the Act, together with the
base prospectus included in the Shelf Registration Statement; and any reference
herein to any Preliminary Prospectus or the Prospectus shall be deemed to refer
to and include the documents incorporated by reference therein pursuant to Item
12 of Form S-3 under the Act, as of the date of such Preliminary Prospectus or
Prospectus, as the case may be; and any reference to any amendment or supplement
to any Preliminary Prospectus or the Prospectus shall be deemed to refer to and
include any documents filed after the date of such Preliminary Prospectus or
Prospectus, as the case may be, under the Exchange Act.

                  (iii) "REGISTRATION STATEMENT" means the various parts of the
Shelf Registration Statement, including all exhibits thereto and including (i)
the information contained in the form of final prospectus supplement to the base
prospectus included in the Shelf Registration Statement, filed with the
Commission after the date hereof pursuant to Rule 424(b) under the Act in
accordance with this Article IV and deemed by virtue of Rule 430A under the Act
to be part of the Shelf Registration Statement at the time it was declared
effective and (ii) the documents incorporated by reference in such final
prospectus supplement.

         (b) Each of the Partnership and the Company, jointly and severally,
will indemnify and hold harmless the Holder against any losses, claims, damages
or liabilities, joint or several, to which the Holder may become subject, under
the Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in any Preliminary
Prospectus, the Registration Statement or the Prospectus, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the
Holder for any legal or other expenses reasonably incurred by the Holder in
connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however, that the Partnership and the Company
shall not be

                                       20
<PAGE>

liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in any Preliminary Prospectus,
the Registration Statement or the Prospectus or any such amendment or supplement
in reliance upon and in conformity with written information furnished to the
Partnership by the Holder expressly for use therein.

         (c) The Holder will indemnify and hold harmless the Partnership and the
Company against any losses, claims, damages or liabilities to which either the
Partnership, the Company or both may become subject, under the Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in any Preliminary Prospectus,
Registration Statement or Prospectus, or any amendment or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in any Preliminary Prospectus, Registration Statement
or Prospectus or any such amendment or supplement in reliance upon and in
conformity with written information furnished to the Partnership by the Holder
expressly for use therein; and will reimburse the Partnership and the Company
for any legal or other expenses reasonably incurred by the Partnership and the
Company in connection with investigating or defending any such action or claim
as such expenses are incurred.

         (d) Promptly after receipt by an indemnified party under Sections
4.10(b) or (c) above of notice of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under such subsection, notify the indemnifying party in
writing of the commencement thereof; but the omission so to notify the
indemnifying party shall not relieve it from any liability which it may have to
any indemnified party otherwise than under such subsection. In case any such
action shall be brought against any indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it shall wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party shall
not be liable to such indemnified party under such subsection for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof other
than reasonable costs of investigation. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act, by or
on behalf of any indemnified party.

                                       21
<PAGE>

         (e) If the indemnification provided for in this Section 4.10 is
unavailable to or insufficient to hold harmless an indemnified party under
Sections 4.10 (b) or (c) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the Partnership and the Company on the one hand and the Holder
on the other in connection with the statements or omissions which resulted in
such losses, claims, damages or liabilities (or actions in respect thereof), as
well as any other relevant equitable considerations. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Partnership and the
Company on the one hand or Holder on the other and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Partnership, the Company and the Holder agree that it
would not be just and equitable if contributions pursuant to this Section
4.10(e) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to above in this Section 4.10(e). The amount paid or payable by an indemnified
party as a result of the losses, claims, damages or liabilities (or actions in
respect thereof) referred to above in this Section 4.10(e) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 4.10(e), the Holder shall not be
required to contribute any amount in excess of the amount by which the aggregate
consideration received by the Holder from the sale of any Registrable Securities
pursuant to the relevant Shelf Registration Statement exceeds the amount of any
damages which the Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

         (f) The obligations of the Partnership and the Company under this
Section 4.10 shall be in addition to any liability which the Partnership and the
Company may otherwise have and shall extend, upon the same terms and conditions,
to each person, if any, who controls any Holder within the meaning of the Act;
and the obligations of the Holder under this Section 4.10 shall be in addition
to any liability which the Holder may otherwise have and shall extend, upon the
same terms and conditions, to each officer and director of the Company and to
each person, if any, who controls the Partnership or the Company within the
meaning of the Securities Act.

                                   ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

         SECTION 5.1 REPRESENTATIONS AND WARRANTIES OF THE PARTIES. Each party
to this Agreement hereby represents and warrants to each other party that the
statements in this Article V are true and correct as of the date of this
Agreement.

         (a) Such party is an entity duly created, formed or organized, validly
existing, and in good standing under the Laws of the jurisdiction of its
creation, formation, or organization.

                                       22
<PAGE>

There is no pending or, to such party's knowledge, Threatened, Action (or Basis
therefor) for the dissolution, liquidation, insolvency, or rehabilitation of
such party.

         (b) Such party has the entity power and authority to execute and
deliver this Agreement and to perform and consummate the transactions
contemplated herein. Such party has taken all actions necessary to authorize the
execution and delivery of this Agreement, the performance of such party's
obligations hereunder, and the consummation of the transactions contemplated
herein. This Agreement has been duly authorized, executed, and delivered by, and
is Enforceable against, such party.

         (c) The execution and the delivery of this Agreement by such party and
the performance and consummation of the transactions contemplated herein by such
party will not (i) Breach any provision of its organizational documents, (ii)
Breach any Law to which such party is subject, (iii) Breach any Contract or
Order to which such party is a party or by which such party is bound or to which
any of such party's assets is subject, or (iv) require any approval, consent,
ratification, permission, waiver or authorization not already obtained, except
in the case of clauses (ii), (iii) and (iv) as would not have a material adverse
affect on the ability of such party to perform its obligations hereunder and
consummate the transactions contemplated herein.

         SECTION 5.2 REPRESENTATION AND WARRANTY OF THE INVESTOR. The Investor
represents and warrants to the Company and the Partnership that in acquiring
Exchange Units, the Investor is not offering or selling, and shall not offer or
sell any Exchange Units, for the Partnership in connection with any distribution
of any of the Exchange Units, and the Investor does not have a participation and
shall not participate in any such undertaking or in any underwriting of such an
undertaking except in compliance with applicable federal and state securities
laws. The Investor acknowledges that it is able to fend for itself, can bear the
economic risk of its investment in the Exchange Units, and has such knowledge
and experience in financial and business matters that it is capable of
evaluating the merits and risks of an investment in the Exchange Units. The
Investor is an "accredited investor" as such term is defined in Regulation D
under the Securities Act. The Investor understands that none of the Exchange
Units shall have been registered pursuant to the Securities Act or any
applicable state securities laws, that the Exchange Units shall be characterized
as "restricted securities" under federal securities laws and that under such
laws and applicable regulations none of the Exchange Units can be sold or
otherwise disposed of without registration under the Securities Act or an
exemption therefrom.

                                   ARTICLE VI
                                  MISCELLANEOUS

         SECTION 6.1 NOTICES. All notices and other communications provided for
or permitted under this Agreement shall be made in writing by hand delivery,
first class mail (registered or certified, return receipt requested), telex,
telecopier, or air courier guaranteeing overnight delivery:

                                       23
<PAGE>

                  if to Investor:

                  Goldman Sachs & Co.
                  1 New York Plaza
                  New York, New York 10004
                  Facsimile: (212) 346 3124
                  Attention: Raanan Agus

                  with a copy to:

                  Goldman Sachs & Co.
                  1 New York Plaza
                  New York, New York 10004
                  Facsimile: (212) 346 3124
                  Attention: General Counsel

                  and a copy to:

                  Vinson & Elkins L.L.P.
                  666 Fifth Avenue
                  26th Floor
                  New York, New York 10103
                  Facsimile: (917) 206 8100
                  Attention: Mike Rosenwasser

                  if to the Company:

                  GulfTerra Energy Company, L.L.C.
                  c/o El Paso Corporation
                  1001 Louisiana Street
                  Houston, Texas 77002
                  Facsimile: (713) 445 8546
                  Attention: Tom Hart

                  with a copy to:

                  GulfTerra Energy Company, L.L.C.
                  c/o El Paso Corporation
                  1001 Louisiana Street
                  Houston, Texas 77002
                  Facsimile: (713) 420 4601
                  Attention: Mark Leland

                  and a copy to:

                                       24
<PAGE>

                  Andrews Kurth LLP
                  600 Travis
                  Suite 4200
                  Houston, Texas 77002
                  Facsimile: (713) 220 4285
                  Attention: G. Michael O'Leary

                  if to the Partnership:

                  GulfTerra Energy Partners, L.P.
                  Four Greenway Plaza
                  Suite 176
                  Houston, Texas 77046
                  Facsimile: (832) 676 1665
                  Attention: Mark Leland

                  with a copy to:

                  GulfTerra Energy Partners, L.P.
                  Four Greenway Plaza
                  Suite 176
                  Houston, Texas 77046
                  Facsimile: (832) 675 8163
                  Attention: Greg Jones

                  and a copy to:

                  Akin Gump Strauss Hauer & Feld LLP
                  1900 Pennzoil Place, South Tower
                  711 Louisiana Street
                  Houston, Texas 77002
                  Facsimile: (713) 236 0822
                  Attention: J. Vincent Kendrick

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
says after being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and on the next business day, if timely delivered
to an air courier guaranteeing overnight delivery.

         SECTION 6.2 TERMINATION. This Agreement shall terminate upon the later
of (i) the conversion of all of the Class A Membership Interest to a Class B
Membership Interest, (ii) the retirement of all of such Class A Membership
Interest pursuant to the provisions of the Company LLC Agreement or (iii) such
time that of the Common Units, Exchange Units and Tag/Drag Units are no longer
Registrable Securities. Notwithstanding the foregoing, if any Registrable
Securities are sold pursuant to Article IV hereof, the provisions of Section
4.10 hereof shall not terminate and shall survive indefinitely.

                                       25
<PAGE>

         SECTION 6.3 THIRD PARTY BENEFICIARY. Each of the parties specifically
intends that the Class B Member shall be entitled to assert its rights and
remedies hereunder as a third-party beneficiary hereto with respect to those
provisions of this Agreement affording a right, benefit or privilege to it
(including, without limitation, Section 2.5(b)).

         SECTION 6.4 AMENDMENT. This Agreement may be amended or modified from
time to time only by written agreement of all the parties hereto. Each such
instrument shall be reduced to writing and shall be designated on its face an
"amendment" to this Agreement.

         SECTION 6.5 SUCCESSORS AND ASSIGNS. All of the terms, agreements,
covenants, representations, warranties, and conditions of this Agreement are
binding upon, and inure to the benefit of and are enforceable by, the parties
hereto and their respective successors and assigns. Except as expressly provided
in the following sentence, no party may assign, transfer or otherwise alienate
either this Agreement or any of its rights, interest or obligations hereunder
without the prior written approval of the other parties. Notwithstanding the
immediately preceding sentence, the Holder can transfer Registrable Securities
to its Affiliates so long as such transfer is made in accordance with the
Securities Act and all of the Holder's obligations under this Agreement remain
with Holder; provided, in the event of such a transfer, the Holder may enforce
its rights under this Agreement on behalf of such Affiliate.

         SECTION 6.6 COUNTERPARTS. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         SECTION 6.7 ARTICLES AND SECTIONS; HEADINGS. Unless otherwise provided,
all reference to Articles, Sections and paragraphs herein refer to Articles,
Sections and paragraphs of this Agreement. The headings in this Agreement are
for convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

         SECTION 6.8 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to the conflict of law rules thereof.

         SECTION 6.9 SEVERABILITY. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

         SECTION 6.10 ENTIRE AGREEMENT. This Agreement, together with
Transaction Agreements to which the parties hereto are party, constitutes the
entire agreement and understanding of the parties hereto in respect of its
subject matter and supersedes all prior understandings, agreements, or
representations by or among such parties, written or oral, to the extent they
relate in any way to the subject matter hereof.

                                    * * * * *

                                       26
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                           COMPANY

                                           GulfTerra Energy Company, L.L.C.

                                           By: /s/ JAMES H. LYTAL
                                               ---------------------------------
                                               James H. Lytal
                                               President

                                           PARTNERSHIP

                                           GulfTerra Energy Partners, L.P.

                                           By: GulfTerra Energy Company, L.L.C.,
                                               its general partner

                                           By: /s/ JAMES H. LYTAL
                                               ---------------------------------
                                               James H. Lytal
                                               President

                                           INVESTOR

                                           Goldman Sachs & Co.

                                           By: /s/ RAANAN AGUS
                                               ---------------------------------
                                           Name: Raanan Agus
                                                 -------------------------------
                                           Title: Managing Director
                                                  ------------------------------

                                       27
<PAGE>
                                    EXHIBIT A

                             FORM OF ACKNOWLEDGEMENT

      This Acknowledgment, dated as of        , 200 , is executed by Holder, the
Company and the Partnership (each, as defined in the Exchange and Registration
Rights Agreement, dated October 2, 2003, among Goldman Sachs & Co., GulfTerra GP
Holding Company and Gulf GulfTerra Energy Company, L.L.C. (the "EXCHANGE
AGREEMENT"). Each of such parties hereby acknowledges and agrees that (i) the
Total Number of Exchange Units (as defined in the Exchange Agreement) for
purposes of the Exchange Agreement shall be the number set forth in the space
below and (ii) such Total Number of Exchange Units may only be adjusted or
modified pursuant to the provisions of the Exchange Agreement.

--------------------------------------
TOTAL NUMBER OF EXCHANGE UNITS
(as defined in the Exchange Agreement)

                                        HOLDER

                                        By:
                                            --------------------------
                                        Name:
                                        Title:

                                        COMPANY

                                        By:
                                            --------------------------
                                        Name:
                                        Title:

                                        PARTNERSHIP

                                        By:
                                            --------------------------
                                        Name:
                                        Title:

                                       A-1

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